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Saudi Arabia Plans to Invest $4.5b in Poultry Production

Saudi Arabia seeks to boost the self-sufficiency rate of poultry meat - Asharq Al-Awsat
Saudi Arabia seeks to boost the self-sufficiency rate of poultry meat - Asharq Al-Awsat
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Saudi Arabia Plans to Invest $4.5b in Poultry Production

Saudi Arabia seeks to boost the self-sufficiency rate of poultry meat - Asharq Al-Awsat
Saudi Arabia seeks to boost the self-sufficiency rate of poultry meat - Asharq Al-Awsat

Saudi Minister of Environment, Water, and Agriculture Eng. Abdulrahman bin Abdul Mohsen Al-Fadhli revealed an expansion plan for the broiler sector and support services, in cooperation with the relevant authorities, to boost the self-sufficiency rate of poultry meat to 80% by 2025 as a first stage to achieve food security.

The expansion plan will contribute to pumping new investments into the poultry production sector in the Kingdom with a value of SR17 billion ($4.5 billion) until 2025, to achieve a target production capacity estimated at 1.3 million tons of broiler chickens annually, the Minister said.

He also affirmed that the plan will help achieve national food security, increase the contribution to local content, and provide jobs opportunities.

Al-Fadhli stressed that the Agricultural Development Fund for companies and institutions wishing to expand in the poultry production industry would provide around 70% of the investment cost when using advanced technologies, adding that the new expansion investments will boost the role of the poultry production sector in achieving food security and providing high-quality local products and appropriate prices.

This comes in line with the goals of Vision 2030 to support the private sector, increase its contribution to economic development, and raise its contribution to the gross domestic product.

Al-Fadhli hailed the Saudi government for the constant support it provides to the sector to achieve food security.

Saudi Arabia's self-sufficiency in poultry meat production increased from 45% in 2016 to 68% in 2022, as the Ministry seeks to raise the self-sufficiency rate of poultry meat to 80% to achieve food security.

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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.