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Saudi E-commerce Growth Rate Exceeds 32%

Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
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Saudi E-commerce Growth Rate Exceeds 32%

Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)
Saudi Minister of Commerce Majid al-Qasabi at the event organized by the E-commerce Council in cooperation with the Joint Saudi-British Business Council (Asharq Al-Awsat)

Saudi Arabia is one of the top ten countries in e-commerce, achieving an annual growth rate of more than 32 percent, announced Minister of Commerce Majid al-Qasabi.

Speaking at a seminar on the "Role of E-commerce in Strengthening the Saudi-British Economic Partnership," Qasabi stressed that strengthening the e-commerce business system is one of the goals of the National Transformation Program of Vision 2030.

He highlighted the significance of e-commerce in strengthening the national economy.

The E-commerce Council organized the event in cooperation with the Saudi-British Joint Business Council in London, which was attended by the Saudi ambassador to the UK, Prince Khalid bin Bandar, and the Honorary President of the Joint Saudi British Business Council, Baroness Symons, from the British side.

Qasabi chaired a high-level Saudi delegation that included representatives from 11 government agencies.

Deputy Minister of Commerce and General Supervisor of the E-commerce Council Iman al-Mutairi said that Saudi Arabia improved and reformed its e-commerce legislation and regulations, which created substantial growth opportunities in the field.

Mutairi noted that market growth reached $43.2 billion in 2021.

Several Saudi authorities in public and private sectors reviewed investment opportunities mainly in digital infrastructure, financial technology, electronic payment, logistics and transportation and last-mile delivery solutions.

They also reviewed electronic services related to the quality of life such as e-health, e-learning, entertainment, games, and others, in addition to dealing with cooperation and bilateral partnership in light of the high growth achieved by e-commerce.

Saudi authorities at the event included representatives from the ministries of trade, investment, transport, and logistics, the Saudi Central Bank (Sama), the Communications and Information Technology Commission (CITC), Zakat, Tax, and Customs Authority, the Small and Medium Enterprises Authority (Monshaat), the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Competitiveness Center (NCC), the Saudi Business Center, and the Saudi Post.

The Saudi delegation continues its visit to London by touring several business accelerators and incubators, most notably "TechUK," concerned with trade and technology.

TechUK collaborates with the British government and about 850 members in various sectors to form and accelerate trade policies.

The Saudi officials will also visit Level39, a tech community consisting of 1250 leaders in cybersecurity and the UK's largest concentration of cyber expertise.

Saudi Arabia recently witnessed great steps to develop and strengthen its economic relationship with Britain leading to promising opportunities in its Vision 2030.

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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.