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Saudi Arabia, Spain to Boost Investments in Mega Environmental Projects

Participants in a dialogue session during the Saudi-Spanish Investment Forum in Riyadh (Asharq Al-Awsat)
Participants in a dialogue session during the Saudi-Spanish Investment Forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia, Spain to Boost Investments in Mega Environmental Projects

Participants in a dialogue session during the Saudi-Spanish Investment Forum in Riyadh (Asharq Al-Awsat)
Participants in a dialogue session during the Saudi-Spanish Investment Forum in Riyadh (Asharq Al-Awsat)

Saudi Arabia announced its mega projects to achieve the environmental goals of the Saudi Green and the Middle East Green Initiatives and the goals of net zero emissions.

The Kingdom hosted a Saudi-Spanish Investment Forum attended by a delegation from Madrid chaired by Minister of State for Energy Sara Munoz. It also included several officials, investors, and representatives of Spanish commercial companies.

Saudi Minister of Environment, Water, and Agriculture Abdulrahman al-Fadhli announced the most prominent sectors targeted in the Kingdom to investors from Spain, focusing on green energy, agricultural technology, defense, security, and tourism.

Fadhli indicated that the Forum aims to enable commercial partnerships between the two countries and explore investment opportunities.

The Minister indicated that the Green Initiatives launched by Crown Prince Mohammed bin Salman and the Kingdom's goal of net zero emissions by 2060, sustainability, and more efficient desalination methods could only be completed in partnership with the expertise of the private sector.

Fadhli stated that the Forum provides an excellent opportunity to create more effective dialogues and explore tangible ideas leading to investment development.

He asserted that the Kingdom is looking forward to continued and fruitful cooperation with Spain.

Saudi Arabia aims to become one of the 15 largest economies in the world, which requires a gross domestic product of $1.7 trillion in 2030, said the Minister, adding that the Kingdom wants to increase recycling by 42 percent and establish new facilities to manage 106 million tons of waste by 2035.

He announced that waste-related projects create 77,000 jobs and contribute $32 million to the Kingdom's GDP.

Fadhli added that the first quarter of 2022 represents the best period for the Saudi economy in over a decade.

The International Monetary Fund (IMF) predicted that the Kingdom would witness the second fastest growth this year, revealing that foreign direct investment increased 257.2 percent over the past year, representing 2.3 percent of GDP.

Saudi Minister of Tourism Ahmed al-Khateeb revealed that Saudi Arabia aims to attract 70 million international and local visitors, stressing that tourism in the Kingdom is one of the fastest growing and most attractive sectors globally.

Khateeb indicated that the tourism sector in Saudi Arabia witnessed record developments during the past year, calling for more Spanish companies to join the international partners working in the Kingdom.

The Saudi-Spanish Investment Forum reviewed investment opportunities in the most notable significant projects in the Kingdom, including NEOM, Red Sea, ROSHN, and the Diriyah region.

The sessions also touched on the latest developments and opportunities in key sectors such as water, transportation, infrastructure, hospitality management, innovation, and technology.

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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.