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Saudi Arabia Develops a Global Integrated Logistics Park

Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
    Jeddah – Asharq Al-Awsat
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Saudi Arabia Develops a Global Integrated Logistics Park

Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)
Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce officials signing the agreement (Asharq Al-Awsat)

Saudi Arabia aims to develop a global integrated logistics park in the al-Khumrah region, west of the Kingdom.

The Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce signed an agreement to set up a $267.6 million integrated logistics park at al-Khumrah, south of Jeddah, to boost economic development, national investments, and partnership with the private sector.

Two weeks ago, Mawani and Maersk began construction on Saudi Arabia's largest Integrated Logistics Park at Jeddah Islamic Port, with investments amounting to $346.6 million, providing more than 2,500 direct and indirect job opportunities.

The new region directly achieves Mawani's strategic objectives as the main link in the system, in line with the goals of the National Transport and Logistics Strategy, by establishing the Kingdom's position as a global logistics hub.

The park is also linked to the National Industrial Development and Logistics Program (NIDLP), and al-Khumra is one of the pioneering areas targeted for development as a global logistics region.

It aims to increase the optimal utilization of Mawani's assets and achieve diversification by providing more than 10,000 new direct and indirect jobs in the logistics sector through business and investments.

The 3-km logistics park comprises three zones: shared warehouses, medium-sized storage yards and single warehouses, and large storage yards and on-demand warehouses.

The various zones will meet the requirements of importers and exporters of stocking multipurpose cargo, chilled and frozen goods, food commodities, and fragile goods.

The park offers move-in-ready warehouses, storage yards, re-export zones, custom storage, logistics amenities, commercial units, residential units, staff accommodation, state-of-the-art infrastructure like roads and green spaces, and other essential services.

Meanwhile, Cruise Saudi, wholly owned by the Public Investment Fund (PIF), welcomed nearly 9,000 tourists from five European countries to celebrate Saudi Founding Day.

The 8,800 tourists visited key Saudi destinations through three cruise ship calls in Jeddah Islamic Port and King Abdulaziz Port in Dammam.

Tourists were welcomed at the passengers' terminal with Founding Day traditional activities, including cultural gifts, Saudi coffee, dates, and folklore dances, in collaboration with all relevant authorities and local partners.

The tourists, representing different nationalities, namely English, Spanish, Italian, French, and Russian, witnessed and engaged in the vibrant Saudi Founding Day festivities in their various expeditions in both Jeddah and the Eastern Province through Dammam Port.

The activities included a flight to visit AlUla, Saudi's first UNESCO World Heritage site, an enjoyable walk at Jeddah's Waterfront, and a journey back in time through centuries of culture and traditions by visiting the UNESCO World Heritage site of Jeddah Historical District, filled with vibrant artwork, exotic scents, traditional markets, and authentic Hijazi architecture unique to the region.

They could also tour al-Ahsa Oasis, Saudi's third UNESCO World Heritage site accessible via cruising, exploring the Qara Mountain, Princes' School, and al-Qaisariyah Souq.

The ongoing cruising season of Cruise Saudi, from November 2022 until May 2023, is set to welcome over 75 scheduled calls by ships from several global cruise lines sailing the Red Sea and Arabian Gulf.

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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.