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Algeria to Establish Base for Economic, Investment Cooperation with Saudi Arabia

Algerian Ambassador to the Kingdom Mohamed Ali Boughazi (Photo Credit: Ali Al Dhaheri)
Algerian Ambassador to the Kingdom Mohamed Ali Boughazi (Photo Credit: Ali Al Dhaheri)
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Algeria to Establish Base for Economic, Investment Cooperation with Saudi Arabia

Algerian Ambassador to the Kingdom Mohamed Ali Boughazi (Photo Credit: Ali Al Dhaheri)
Algerian Ambassador to the Kingdom Mohamed Ali Boughazi (Photo Credit: Ali Al Dhaheri)

Algeria is currently planning to establish a base for economic and investment cooperation with the Kingdom of Saudi Arabia, an Algerian diplomat told Asharq Al-Awsat on Saturday.

Saudi-Algerian relations have recently witnessed remarkable development. Change could be felt through the high level of consultation and cooperation between Algiers and Riyadh. Senior officials from both countries had exchanged visits.

Algeria and Saudi Arabia share views on many political and economic files, Algerian Ambassador to the Kingdom Mohamed Ali Boughazi affirmed to Asharq Al-Awsat.

This alignment has allowed the two countries to coordinate in international forums, such as OPEC and OPEC+, added Boughazi.

He pointed to Algeria’s support for the Kingdom to organize Expo 2030.

He also mentioned the Kingdom’s support for Algeria’s candidacy for non-permanent membership of the UN Security Council in 2024 -2025.

“For our part, we will strive to do our utmost to raise the relations of cooperation between our two countries to the highest levels,” affirmed Boughazi.

“The number of agreements signed between the two countries exceeded 30,” added the diplomat.

Boughazi explained that the agreements cover a variety of economic and commercial fields, including the establishment of the mixed investment company and a joint business council.

Moreover, some deals were signed in the field of culture and archives.

“We will seek to raise economic cooperation to the highest levels,” asserted Boughazi.

“Our priority now is to work on intensifying mutual visits between investors and businessmen from both countries,” he added.

The ambassador acknowledged that the volume of trade exchange between the Kingdom and Algeria does not currently reflect the enormous capabilities available to the two countries, nor the aspirations of their leadership.

“A new investment law was issued that gives many advantages and provides many facilities for resident and non-resident investors,” revealed Boughazi, adding that conditions are very favorable for Saudi businessmen to invest in Algeria.

“We will work with the Saudis to overcome difficulties and implement mature investment projects,” said Boughazi.

Besides implementing several economic and investment cooperation agreements, there are several tabled projects, some of which are ready for signing and others are under study, revealed the diplomat.

Boughazi stressed his country’s desire to cooperate with new Saudi initiatives in the fields of green economy, clean energy, environment, and the climate.

He pointed to his country having paid special attention to renewable energies through the establishment of Algeria’s own ministerial department to manage this promising sector.

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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.