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Jubail, Yanbu Sign $11.4-Billion-Worth Investment Agreements in Mining

The Future Minerals Forum witnessed the signing of major agreements to promote the mining industry. (Asharq Al-Awsat)
The Future Minerals Forum witnessed the signing of major agreements to promote the mining industry. (Asharq Al-Awsat)
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Jubail, Yanbu Sign $11.4-Billion-Worth Investment Agreements in Mining

The Future Minerals Forum witnessed the signing of major agreements to promote the mining industry. (Asharq Al-Awsat)
The Future Minerals Forum witnessed the signing of major agreements to promote the mining industry. (Asharq Al-Awsat)

The Royal Commission for Jubail and Yanbu (RCJY) - the two largest industrial cities in the Kingdom – have announced five agreements worth more than 43 billion riyals ($11.4 billion) to establish projects in Ras Al-Khair Minerals City and Yanbu Industrial City.

The agreements were signed on the sidelines of the Future Minerals Forum, which concluded on Thursday in Riyadh.

RCJY signed an agreement worth SAR38 billion with Red Sea Industrial Aluminum Company (RSA) to set up a non-ferrous foundry for casting aluminum. The project will target local and global markets and create approximately 5,517 job opportunities.

The factory will also stimulate manufacturing industries, provide future localization opportunities and achieve the 2030 mining strategy, with a project area of 703.8 hectares and an investment volume of SAR38 billion.

The second agreement provides for the lease of industrial land with EV Metals Arabic Industrial Company for the production of high purity chemicals required for active ingredients in the cathode of electric vehicles, and renewable energy storage.

The Royal Commission in Ras Al-Khair City for Mining Industries signed three investment agreements, including an agreement with the Saudi Manufacturing Industries Holding Company, for the allocation of a site of 157,000 square meters to establish and operate a factory for the production of aluminum foil and coils.

An agreement was also concluded with the Tamouh Development and Investment Company to allocate a land of 130,000 square meters to establish and operate a factory for the production of high-density aluminum fluoride, with an investment value of 474 million riyals. The project is expected to provide more than 127 job opportunities.

The third agreement was signed with the Petroleum Protection Services and Construction Company to allot a site with a total area of 10,000 square meters to establish and operate a ready-mixed concrete factory for marine uses, which will support the port and marine industries sector with an investment of 5 million riyals and will create 75 job opportunities.

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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.