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Expanding Investment in AI Technologies Crucial to Meeting Future Needs

Part of the opening ceremony of the International Exhibition and Conference on Artificial Intelligence and Cloud Computing in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Part of the opening ceremony of the International Exhibition and Conference on Artificial Intelligence and Cloud Computing in Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Expanding Investment in AI Technologies Crucial to Meeting Future Needs

Part of the opening ceremony of the International Exhibition and Conference on Artificial Intelligence and Cloud Computing in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Part of the opening ceremony of the International Exhibition and Conference on Artificial Intelligence and Cloud Computing in Riyadh, Saudi Arabia (Asharq Al-Awsat)

Exceptional times experienced by the world, considering the lessons learned from the coronavirus pandemic and its aftermath, require a broader investment in technology, said Wafi bin Hammad Albalawi, vice president of the Saudi Electronic University.

He said that maximizing investment in tech will help the world benefit from its practical value, reduce costs, and meet global needs at a time when the use of artificial intelligence and technology alternatives is increasing in vital sectors at an accelerating pace.

The International Exhibition and Conference on Artificial Intelligence and Cloud Computing, held in Riyadh, had called for the importance of expanding investments in artificial intelligence technologies to meet the future needs.

Albalawi stated that investing in advanced digital solutions is an urgent necessity to replace traditional systems in the fields of work, mobility, medicine, economy, and communications.

“There is a burst of knowledge and a digital transformation that Saudi Arabia is witnessing at all levels,” Albalawi told Asharq Al-Awsat, adding that the burst most notably occurred in the Kingdom’s industrial, educational, and logistical sectors.

For the future, the Kingdom plans creating a digital economy through which it leads the Middle East region as a force aspiring to increase digitization rates and investment in technology.

Albalawi pointed to a recent study conducted by the US-based company Accenture, which said that investment in artificial intelligence will increase the Saudi gross domestic product by 12.5 % and will inject more than $215 billion into the Saudi economy by 2035.

Saudi Arabia is hosting the International Exhibition and Conference for Artificial Intelligence and Cloud Computing from May 22 to 24. The event features leaders and pioneers in the technology sectors, both in local, global government and private institutions.

This conference is one of the most specialized and widely spread events globally and seeks to foster innovation and increase competitiveness.

It offers a platform for collaboration between AI leaders and investors to create a better future. The conference offers discussion panels and workshops that will address relevant topics such as artificial intelligence, data science, internet, cybersecurity, big data, and more.

Moreover, Saudi Arabia seeks to digitize many vital sectors and adopt technological transformation through steps based on digital solutions, to improve performance, reduce costs and raise efficiency, as well as creating an attractive environment for investors and entrepreneurs.

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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)
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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.