Kenya’s Trade Minister: Nairobi to Witness Qualitative Cooperation with Saudi Arabia

Kenya’s Minister of Trade and Industry Moses Kuria (Asharq Al-Awsat)
Kenya’s Minister of Trade and Industry Moses Kuria (Asharq Al-Awsat)
TT

Kenya’s Trade Minister: Nairobi to Witness Qualitative Cooperation with Saudi Arabia

Kenya’s Minister of Trade and Industry Moses Kuria (Asharq Al-Awsat)
Kenya’s Minister of Trade and Industry Moses Kuria (Asharq Al-Awsat)

Kenya’s Minister of Trade and Industry Moses Kuria said that Africa, and his country in particular, would not allow its resources to be exploited in the US-Chinese trade war.

He noted that Kenya looked forward to strengthening economic ties with Saudi Arabia by reviving axes of cooperation.

In an interview with Asharq Al-Awsat, Kuria said that his recent visit to the Kingdom saw the signing of two agreements to increase bilateral trade and investments, which included the establishment of a joint business council and an e-commerce platform.

“In my discussions with the Saudis, I found vital ways to better bridge cooperation between the two countries, and we agreed to increase trade exchange, which amounts to $1.5 billion,” he underlined.

The Kenyan official pointed to his fruitful meetings with Dr. Majid Al-Qasabi, Minister of Commerce, Engineer Khaled Al-Falih, Minister of Investment, and Yasser Al-Rumayyan, CEO of the Public Investment Fund, as well as the heads of huge companies, such as Aramco, SABIC, Maaden and Aqua Power.

“Two agreements were signed to stimulate trade and launch commercial zones between a number of regions of the Kingdom in Riyadh, Jeddah and Dammam,” the minister revealed, adding that the agreements also sought to attract Saudi investments in Africa and launch cooperation in banking.

He expected his country to market Saudi products, such as petrochemicals and fertilizers, not only to Kenya, but also to promising African markets with a population of about 1.3 billion.

The logistics services center in Mombasa is one of the most important achievements of the Saudi-Kenyan agreements, Kuria emphasized, adding: “We are about to discover great opportunities and new areas for qualitative cooperation between the two countries.”

Expanding economic cooperation

The Kenyan Minister of Trade and Industry met with the Saudi business sector at the headquarters of the Federation of Saudi Chambers, where he discussed series of proposals to strengthen and develop his country’s economic ties with the Kingdom.

Those include the establishment of a joint business council, an e-commerce platform, an economic cooperation committee, and incentives for Saudi companies to invest in special economic zones, infrastructure and energy projects in Kenya.

Kuria stressed the importance of establishing a joint Saudi-Kenyan committee for trade and investment cooperation, calling on Saudi companies to invest in electricity, water, roads, housing, communications, mining, financial center, hotels, airports, animal production projects, and others.

Stimulating development opportunities

The Kenyan minister told Asharq Al-Awsat that he discussed with the Executive Director of the Operations Sector of the Saudi Fund for Development (SFD), Eng. Faisal Al-Qahtani, the Kingdom’s efforts to support development projects and programs in his country, with the aim of achieving sustainable development goals.

Saudi Arabia has provided, through the SFD, 13 projects and development programs in the transportation, communications, energy, agriculture, health and water sectors since 1978, through soft development loans with a total value exceeding $163 million, in addition to a grant provided by Riyadh to Nairobi through the Fund.

Kuria said he reviewed with the Federation of Saudi Chambers ways to develop systems and legislation, closely identify the needs of the private sector, and work to enhance the confidence of merchants and consumer protection.

He emphasized the most important challenges facing the private sector with regard to the implementation of technical regulations and standards and obtaining a certificate of conformity and a quality mark.

The US-Chinese trade war

Commenting on the US-Chinese race to acquire investment shares in African economic resources, Kuria stressed that African countries, including Kenya, have economic and investment relations with both Washington and Beijing, as is the case with other states in the world.

The minister said he believed that Washington’s prioritization of Africa in its policies, as seen in the recent American-African summit, was built on the huge natural and human potential available in the African Continent.

Similarly, Kuria noted that China found important economic and investment opportunities in African countries, expecting many Chinese companies to enter African markets with the aim to increase investments in the continent.

“There are no limits to African cooperation with China and America,” he said.

He continued: “Africa’s interest requires dealing with everyone without subjecting its will to one party at the expense of another.”

He stressed that the common objective was the exchange of interests and expertise, and benefiting from the capabilities available to all sides.

Kuria said that the world should deal with African countries according to the developments of the stage, as the continent is no longer just a bloc occupied by crises and diseases.

The world has finally discovered that Africa is very rich economically and enjoys great, diversified and vital investment opportunities thanks to its vast fertile lands and abundant water suitable for the largest agricultural and food production in the world, he underlined.



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)
TT

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.