UAE, Egypt, Jordan Sign Industrial Partnership in 5 Sectors for Sustainable Economic Growth

Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
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UAE, Egypt, Jordan Sign Industrial Partnership in 5 Sectors for Sustainable Economic Growth

Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)
Part of the signing event of the integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi on Sunday, May 29, 2022. (WAM)

The United Arab Emirates, Egypt and Jordan announced on Sunday an integrated Industrial Partnership for Sustainable Economic Growth in Abu Dhabi.

The partnership agreement aims to unlock new industrial opportunities and enhance sustainable economic growth in the three countries, across five promising industrial sectors, namely food and agriculture, fertilizers, pharmaceuticals, textiles, minerals, and petrochemicals.

In order to accelerate the partnership objectives, a $10 billion investment fund has been allocated and will be managed by Abu Dhabi state holding firm ADQ.

The UAE Minister of Industry and Advanced Technology, Dr. Sultan bin Ahmed Al Jaber, Egyptian Minister of Industry and Trade Dr. Nevein Gamea, and Jordan’s Minister of Industry, Trade and Supply Yousef al-Shamali signed the partnership agreement.

Egyptian and Jordanian Prime Ministers Mostafa Madbouly and Dr. Bisher al- Khasawneh attended the signing event, along with UAE’s Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed Al Nahyan.

Sheikh Mansour said the partnership reflects President Sheikh Mohamed bin Zayed Al Nahyan’s vision to enhance industrial integration with Arab and world countries for the UAE to be able to achieve a major leap in the industrial sector to become an economic driver.

“Industry is the backbone of the world’s largest economies. Through its capabilities, effective policies and current focus on developing advanced technology and logistics infrastructure, we are confident that the UAE can build a global economic powerhouse by leveraging industrial partnerships across the region.”

He pointed out that advancing the industrial sector in the three countries will help boost and diversify their economy and increase the industry’s contribution to the national GDP.

This partnership further affirms the three countries’ ability to bolster their ties and introduce new projects and industries within an integrated industrial ecosystem, while unlocking promising opportunities for future generations.

According to the information obtained, Abu Dhabi, Cairo and Amman have diverse resources and unique competitive advantages, including access to raw materials.

They enjoy robust capabilities in the pharmaceutical industries, with clear ambition to develop and expand them further and increase their production capacity.

They also wish to strengthen manufacturing capabilities in the steel, aluminum, petrochemicals and derivatives sectors.

Their combined industrial capacity represents around 26% of the total industrial capacity of the MENA region.

They also enjoy a highly developed logistical infrastructure, including airports, ports and strategic transport corridors such as the Suez Canal, major companies with distinct capabilities in the partnership’s focus areas, as well as access to capital and smart financing solutions.

Almost half the total population of the partner countries comprising 122 million people are young and represent both a large market and an emerging workforce.

Khasawneh said that the partnership is an evidence of the depth of the historic ties among the three countries, noting that it enhances integration, protects supply chains, empowers import substitution, and promotes sustainable economic development, resulting in economic growth, job creation and other benefits.

“The continued active interaction and coordination at the leadership level affirms the strong political and economic ties.”

He revealed that the industrial sector in Jordan contributes to 24% of the GDP and accounts for 21% of the country’s workforce.

Jordan exports to many countries around the world and is empowered by supportive laws and regulations.

Madbouly, for his part, said the pandemic and the Russian-Ukrainian crises underlined the importance of this integration to achieve the interests of the three countries’ peoples, adding that it could become the cornerstone for a stronger and broader cooperation among Arabs.

He stressed that the current regional and international conditions make it imperative for Arab countries to maximize opportunities for integration, especially since each country has its unique competitive advantage and capabilities.

The projects that have been agreed upon will create an added value for the three countries and will have a positive impact on national security, local industry, and supply chain activities, the PM noted.



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.