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Saudi Arabia Supports Companies to Enter Cameroon, Togo Markets

Douala port is one of the largest ports of Cameroon, which has excellent investment opportunities in infrastructure (Getty Images)
Douala port is one of the largest ports of Cameroon, which has excellent investment opportunities in infrastructure (Getty Images)
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Saudi Arabia Supports Companies to Enter Cameroon, Togo Markets

Douala port is one of the largest ports of Cameroon, which has excellent investment opportunities in infrastructure (Getty Images)
Douala port is one of the largest ports of Cameroon, which has excellent investment opportunities in infrastructure (Getty Images)

The Saudi Ministry of Investment is currently working on listing all national companies interested in investing in Cameroon and Togo as part of its support for Saudi investment abroad and addressing its challenges with the relevant authorities.

Several Saudi government agencies aim to stimulate and support the private sector to enter foreign projects by presenting available investment opportunities and coordinating with relevant agencies to address the challenges.

The Ministry revealed several opportunities in Cameroon and Togo, west of Africa.

The countries have opportunities in port infrastructure, electricity, water networks, sanitation, communications, tourism, agriculture, and phosphates, said the Ministry, asking those interested to determine suitable projects.

According to the data on investment opportunities available in the two republics, of which Asharq Al-Awsat reviewed a copy, the projects implemented in the Douala port include infrastructure for land sites and communications, water, electricity, and various urban facilities.

Togo's legal framework on public-private partnership revealed that project design and scale were optimized to help anticipate risks associated with it and enable public debt management.

The Saudi government provides all incentives and support to national companies and institutions to develop their business locally and internationally.

It will also address the local private sector to participate in international conferences and exhibitions to present its services and explore available investment opportunities.

In 2019, Saudi Arabia established the General Authority for Foreign Trade (GAFT) to promote the Kingdom's international trade gains and defend its interests in foreign trade, contributing to developing its national economy.​

GAFT is concerned with all tasks related to developing policies and strategies of foreign trade in coordination and alignment with the public and private sectors, in addition to several tasks, including the supervision of commercial attachés abroad and joint Saudi-foreign business council.

GAFT is also concerned with international trade relations, dispute settlement, and negotiations on free trade agreements and bilateral, regional, and international agreements.

It aims to protect the Kingdom's industry from harmful practices in international trade by implementing trade remedies procedures stated in World Trade Organization agreements.

Meanwhile, the Saudi Fund for Development aims to involve the private sector in projects in developing countries by empowering local capabilities and increasing its ability to export its services and products to foreign markets.

Vision 2030 came with ambitious aspirations and targets to develop local content and export national services and products abroad, which requires complementary work between various government agencies and partners from the private sector.

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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.