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Red Sea Global Awards $266 Mn Contract in Saudi Arabia

Triple Bay masterplan of the Red Sea Global (Asharq Al-Awsat)
Triple Bay masterplan of the Red Sea Global (Asharq Al-Awsat)
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Red Sea Global Awards $266 Mn Contract in Saudi Arabia

Triple Bay masterplan of the Red Sea Global (Asharq Al-Awsat)
Triple Bay masterplan of the Red Sea Global (Asharq Al-Awsat)

The Saudi Red Sea Global awarded a Primary Infrastructure and Utility Contract of $266 million to the al-Ayuni Investment and Contracting to progress expansion at Amaala’s first phase of development across its Triple Bay masterplan.

Red Sea Global is developing The Red Sea and Amaala destinations in the Kingdom.

Al-Ayuni, classified as a “First Class” contractor in the Kingdom since 2006, will deliver state-of-the-art Primary Utility Infrastructure Systems while minimizing Triple Bay’s carbon footprint as part of Amaala’s commitment towards net-zero operations.

The CEO of Red Sea Group, John Pagano, said the deal forms a critical part of Red Sea Global’s ambition to pioneer a new relationship between luxury tourism and the natural environment.

“The sheer scale of the developments and our relentless pursuit of regenerative tourism requires meaningful partnerships that can deliver resilient infrastructure,” said Pagano.

He asserted that cooperation with al-Ayuni can collectively shape future developments in the Kingdom.

Al-Ayuni was selected based on its technical and commercial competencies and regional and global credentials.

All design and construction methods meet Red Sea Group’s stringent criteria for end-to-end sustainable development, including economic, financial, social, and institutional factors.

Al-Ayuni’s Chairman Faheed al-Ayuni indicated that Red Sea Global is a future-forward developer closely aligned with the company’s legacy of innovating world-class solutions, cementing trusted relationships, and setting new benchmarks.

Al-Ayuni asserted it was an “honor for us to contribute to its pioneering destinations, and we look forward to unlocking the full breadth of our robust capabilities to meet RSG’s ambitious sustainability targets.”

Amaala’s first phase of development, focused on the Triple Bay masterplan, will encompass eight hotels and upwards of 1,200 hotel keys upon full completion in 2027.

The destination will offer 3,000 hotel rooms across 25 hotels, high-end retail establishments, fine dining, wellness, and recreational facilities.

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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.