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Saudi Arabia Signs $10.6 Bln Deal to Develop Local Infrastructure

Officials sign the agreement on Saturday. (Asharq Al-Awsat)
Officials sign the agreement on Saturday. (Asharq Al-Awsat)
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Saudi Arabia Signs $10.6 Bln Deal to Develop Local Infrastructure

Officials sign the agreement on Saturday. (Asharq Al-Awsat)
Officials sign the agreement on Saturday. (Asharq Al-Awsat)

Saudi Arabia will invest 40 billion riyals ($10.6 billion) in developing local infrastructure projects, announced the Ministry of Municipal and Rural Affairs and Housing.

Under the new agreement, nearly 90 million square meters will be allocated for the local infrastructure projects to provide over 150,000 housing units across 11 cities in an effort to accommodate around 750,000 people.

In addition, nearly 54 million square meters will be allocated for public areas, facilities, parks, road networks and public transport.

The agreement was signed on the sidelines of a housing exhibition organized by the Ministry of Municipal and Rural Affairs and Housing in Riyadh, under the patronage of Custodian of the Two Holy Mosques King Salman bin Abdulaziz.

The exhibition is set to run until September 28.

The deal was signed in the presence of Minister of Housing Majid al-Hogail, Minister of Tourism Ahmed bin Aqeel Al-Khateeb, Minister of Environment, Water and Agriculture Abdulrahman al-Fadley, and Minister of Transport and Logistics Services Saleh Al-Jasser.

The housing ministry was represented by Undersecretary for Real Estate Development Abdul Rahman bin Abdullah Al-Taweel, while the National Housing Company was represented by CEO of NHC Eng Mohammad bin Saleh Al-Bati.

The company is the leading enabler of the real estate development sector and the largest major developer of suburbs and residential communities, and aims to increase the real estate supply in the Kingdom with various housing options.

This comes as part of the company’s efforts to achieve the objectives of the housing program as part of the Kingdom’s Vision 2030, by raising the proportion of housing ownership for Saudi families to 70 percent.

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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.