عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Tops Islamic Financial Service Sector with $800 bln in Assets

The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
TT
TT

Saudi Arabia Tops Islamic Financial Service Sector with $800 bln in Assets

The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)
The signing ceremony of the MoU between the Saudi Ministry of Investment and King Saud University (Asharq Al-Awsat)

The Islamic financial services industry in Saudi Arabia enjoys a prominent position globally, announced Deputy Governor of the Saudi Central Bank (SAMA) for Research and International Affairs Dr. Fahad Bin Abdullah Al-Dossari.

The total assets of the industry in the banking sector, the Sukuk sector, the insurance sector, and the investment funds sectors amounted to $800 billion, which puts it in the lead, according to the 2021 report of the Islamic Financial Services Board (IFSB).

Dossari spoke during the 42nd Al-Baraka Islamic Economics Symposium, which ended recently at the Islamic University of Madinah.

He pointed out that the Islamic financial services industry has witnessed an evident quantitative growth in assets, adding that it has also developed at the international level.

Its global assets amount to about $2.7 trillion, achieving annual growth of more than 10 percent, said Dossari. He noted that the Islamic banking sector continues to acquire the most significant amount of the industry's assets, up to 68 percent.

The official stated that the sector witnessed rapid growth in Saudi Arabia, as the total Sharia-compliant financing amounted to over $4.5 billion, with an annual growth rate of 18 percent.

The total Sharia-compliant deposits amounted to more than $4.7 billion, with an annual growth rate of about 13 percent.

Meanwhile, the Saudi Ministry of Investment signed a memorandum of understanding with King Saud University to bolster cooperation, develop investment opportunities, and exchange data and expertise in the field.

It comes within the framework of the Ministry's efforts to achieve its objectives of attracting investments, enabling the sector to grow, facilitating access to investment opportunities, localizing knowledge and expertise, and enhancing integration efforts between public sectors.

The memorandum will establish regular graduate programs and master's programs based on the needs of the Ministry of Investment and in its areas of interest.

It will help develop investment opportunities in the university's assets to serve the objectives of the National Investment Strategy and achieve new resources for the university.

It will also motivate graduate students and their supervisors to adopt research in basic, applied, economic, and financial research related to investment.

The agreement provides courses, seminars, and workshops to promote a culture of sustainable investment and support training and development opportunities in investment and entrepreneurship.

Most Viewed

 
 
Business

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
TT
TT

Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.