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UAE Launches 11 Green Energy Projects Worth $43 Bn

The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
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UAE Launches 11 Green Energy Projects Worth $43 Bn

The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
The UAE Minister of Energy, Suhail al-Mazrouei (AFP)

The UAE Minister of Energy, Suhail al-Mazrouei, said on Monday that several factors will drive oil prices in 2023, mainly the end of China's zero-COVID policy, the US decision to refill the Strategic Oil Reserve, the sanctions imposed on Russian seaborne oil products, and ongoing global inflation.

Mazrouei also said that other factors may negatively affect oil prices, including the global recession, China's decreasing demand for oil, and the resumption of trade between Russia and Europe.

UAE has launched 11 environmentally friendly energy projects worth $43.2 billion in 2022, announced the Minister.

Mazrouei stated that the UAE's clean energy production in 2021 totaled 7,035.75 megawatts (MW), underscoring the country's pioneering efforts in the clean energy sector.

He told Emirates News Agency (WAM) that the launch of the UAE Energy Strategy 2050, the first unified energy strategy by the UAE, aims to integrate renewable and clean energy mix to achieve a balance between economic needs and climate goals.

It also aims to reduce dependency on other fuel sources over the next three decades.

The Minister added that the UAE has adopted the latest innovations that drive sustainable development, to ensure the renewable energy sector's sustainability. He said that the UAE was among the first countries to ratify the Paris Agreement.

He pointed out that the Ministry of Energy and Infrastructure established the features of the energy sector's future for the upcoming 50 years.

Mazrouei stressed that the contribution of clean energy to the energy mix in 2021 reached 19.63 percent, while the contribution of renewable energy reached 12 percent, and the contribution of peaceful nuclear power reached 7.55 percent by the end of 2021.

The global turmoil in energy supplies has created challenges related to energy security and will, therefore, lead to a focus on using the lowest-priced resources available locally, to meet the country's energy requirements, with an increase in exports in the non-oil sector from the UAE, he added.

He noted that the UAE has considerable potential in the field of solar power, and that its low cost will improve the country's energy security and competitiveness.

He explained that the progress achieved during the process of developing the four Barakah reactors, play a crucial role in reducing the carbon footprint of the UAE's energy sector, in reaching climate neutrality by 2050.

Mazrouei stressed that the Barakah Nuclear Power Plant is a leading innovative energy project in the energy transition process.

Once fully operational, Barakah’s four reactors would offset 22.4 million tons of carbon emissions annually, the leading cause of climate change.

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Business

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.