عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Inks Agreements, MoUs of $2.66 Bln at Real Estate Future Forum

One of the sessions of the Real Estate Future Forum in Riyadh, in which ministers and officials participated (Asharq Al-Awsat)
One of the sessions of the Real Estate Future Forum in Riyadh, in which ministers and officials participated (Asharq Al-Awsat)
TT
TT

Saudi Arabia Inks Agreements, MoUs of $2.66 Bln at Real Estate Future Forum

One of the sessions of the Real Estate Future Forum in Riyadh, in which ministers and officials participated (Asharq Al-Awsat)
One of the sessions of the Real Estate Future Forum in Riyadh, in which ministers and officials participated (Asharq Al-Awsat)

Saudi Arabia has signed agreements and MoUs of more than 10 billion Saudi riyals ($2.66 billion) to set up four investment funds to develop commercial, tourism and residential projects.

A part of the investments will also be made in the field of real estate development and construction techniques.

Moreover, Saudi Arabia’s Ministry of Tourism signed investment agreements worth SAR50 billion with the private sector over the past three years to build hotels until 2026, Tourism Minister Ahmed Al Khateeb revealed.

The minister also announced that the Kingdom wants to build 700,000 hotel units by 2030.

The agreements and announcements were signed and made at the Real Estate Future Forum held in Riyadh, in the presence of Minister of Municipal and Rural Affairs and Housing Majed bin Abdullah Al-Hogail.

Al-Hogail stated that the forum would deal with 10 strategic areas, the most important being the role of regions, governorates, ministries, and secretariats in harmonizing the empowerment in the real estate sector, future of investment, regulations and private sector participation.

During his participation in the Real Estate Future Forum, Al Khateeb pointed out that the contribution of the tourism sector to the GDP increased from 3% in 2019 to 4% by the end of last year, with the aim to reach 10% by 2030 to add $70-$80 billion to the GDP in turn.

For his part, Minister of Industry and Mineral Resources Bandar Alkhorayef revealed that work is underway with the Energy Ministry to develop petrochemical products for alternatives used in building and construction, so that this sector supports the sustainability of demand.

Other officials who participated in the forum mentioned that prominent investment opportunities in the region lie in the Kingdom’s vast lands and rural tourism. They stressed that government sectors are cooperating with all real estate companies.

Most Viewed

 
 
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)
TT
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.