Iran War Hit Euro Zone Consumption Especially Hard, ECB Says

European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 19, 2026. (Reuters)
European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 19, 2026. (Reuters)
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Iran War Hit Euro Zone Consumption Especially Hard, ECB Says

European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 19, 2026. (Reuters)
European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 19, 2026. (Reuters)

Euro zone ‌household consumption fell sharply in the early weeks of the Iran war as confidence tumbled, suggesting that renewed conflict could again thwart consumer spending, a European Central Bank Economic Bulletin article said on Monday.

Euro zone consumer sentiment tumbled after the outbreak of the war but has since climbed a little, even if it ‌remains well below pre-war ‌levels, weakening overall economic ‌growth, ⁠which has been modest ⁠for years.

The consumption drop in April was twice as large as historical trends would suggest and was comparable in magnitude to households' response to Russia's war in Ukraine in early 2022, the ECB ⁠said.

"This suggests that the confidence ‌channel is ‌particularly strong in the case of large shocks that ‌are widely perceived as such by consumers," ‌the ECB argued.

After hovering around 3%-4% on average from mid-2024, nominal consumption growth declined to around 2.5% year on year in April, ‌with the decline driven by higher income households cutting discretionary spending.

"This ⁠reinforces ⁠the view that the slowdown is not the result of binding income constraints but rather of households postponing purchases when they have the scope to adjust the timing of their spending," the ECB said.

Households also feared that rapid inflation caused by the conflict could erode real incomes and 40% of those surveyed said they did not expect this income loss to be recouped.



Türkiye Appoints Muhsin Atci as Head of Capital Markets Board

Spectators gather outside Anitkabir, the mausoleum of the Turkish Republic's Founder Mustafa Kemal Ataturk, as Turkish Air force pilots of the 'Turkish Stars' fly over the mausoleum during celebrations to mark the 103th anniversary of the Republic of Türkiye in Ankara on October 29, 2026. (Photo by ADEM ALTAN / AFP)
Spectators gather outside Anitkabir, the mausoleum of the Turkish Republic's Founder Mustafa Kemal Ataturk, as Turkish Air force pilots of the 'Turkish Stars' fly over the mausoleum during celebrations to mark the 103th anniversary of the Republic of Türkiye in Ankara on October 29, 2026. (Photo by ADEM ALTAN / AFP)
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Türkiye Appoints Muhsin Atci as Head of Capital Markets Board

Spectators gather outside Anitkabir, the mausoleum of the Turkish Republic's Founder Mustafa Kemal Ataturk, as Turkish Air force pilots of the 'Turkish Stars' fly over the mausoleum during celebrations to mark the 103th anniversary of the Republic of Türkiye in Ankara on October 29, 2026. (Photo by ADEM ALTAN / AFP)
Spectators gather outside Anitkabir, the mausoleum of the Turkish Republic's Founder Mustafa Kemal Ataturk, as Turkish Air force pilots of the 'Turkish Stars' fly over the mausoleum during celebrations to mark the 103th anniversary of the Republic of Türkiye in Ankara on October 29, 2026. (Photo by ADEM ALTAN / AFP)

Muhsin Atci has been appointed as chairman of Türkiye's Capital Markets Board (SPK), with Ersin Başar Ekmekci appointed as deputy chairman, according to a ⁠decision announced in ⁠the country's Official Gazette on Sunday.

Atci's predecessor, Mahmut Sutcu, ⁠was dismissed from his post as SPK chairman on October 20.

Atci was previously head of Türkiye's tax audit board.

The Official ⁠Gazette ⁠decision, signed by President Recep Tayyip Erdogan, also appointed Yasemin Girici as a member of the board.


Aramco Acquires 49% Stake in HUMAIN

Delegates stop to talk in front of the Aramco booth at the exihibtion set up during the 25th WPC the 25th WPC Energy Congress (World Petroleum Council) in Riyadh on October 12, 2026. (Photo by Fayez Nureldine / AFP)
Delegates stop to talk in front of the Aramco booth at the exihibtion set up during the 25th WPC the 25th WPC Energy Congress (World Petroleum Council) in Riyadh on October 12, 2026. (Photo by Fayez Nureldine / AFP)
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Aramco Acquires 49% Stake in HUMAIN

Delegates stop to talk in front of the Aramco booth at the exihibtion set up during the 25th WPC the 25th WPC Energy Congress (World Petroleum Council) in Riyadh on October 12, 2026. (Photo by Fayez Nureldine / AFP)
Delegates stop to talk in front of the Aramco booth at the exihibtion set up during the 25th WPC the 25th WPC Energy Congress (World Petroleum Council) in Riyadh on October 12, 2026. (Photo by Fayez Nureldine / AFP)

Saudi Arabia’s Public Investment Fund and Aramco announced on Sunday the closing of a transaction in which Aramco, through a wholly owned subsidiary, acquires a 49% stake in HUMAIN, with PIF retaining 51% ownership.

The transaction will further accelerate HUMAIN’s growth and advance its full range of AI capabilities globally, with PIF and Aramco contributing AI assets, capabilities, and talent, a joint statement said.

It involves approximately SAR 9.9 billion ($2.6 billion) in cash contributions in 2026 from Aramco to HUMAIN, in addition to AI, compute, and digital assets.

The transaction will accelerate HUMAIN’s ambition to build a globally competitive, integrated AI ecosystem spanning the full stack: from data centers and high-performance compute to advanced models, applications, and industry solutions. Additionally, it will further enable HUMAIN’s plans to develop data center capacity by 2030 and deliver solutions that help the public and private sectors to deploy AI at scale, the statement said.

The transaction builds on Saudi Arabia’s efforts to further enable the development and deployment of the most advanced data and AI technologies while attracting talent and investment opportunities, it added.

According to the statement, PIF's strategy for AI and the digital economy benefits from Saudi Arabia’s position as a globally competitive market through innovation and capacity building.

Partnering with Aramco in HUMAIN aligns with PIF 2026-2030 strategy, which aims to deepen integration across economic ecosystems, expand opportunities with the private sector, and accelerate the growth of national companies into globally competitive leaders.

Aramco is expected to leverage HUMAIN’s AI infrastructure to translate advanced AI capabilities into industrial applications, further enhancing its global ecosystem and operations.

Aramco will benefit as a shareholder and strategic partner from HUMAIN’s advanced AI infrastructure and services. With opportunities for revenue growth and attractive margins, the partnership is expected to enhance Aramco’s monetization of existing AI and digital assets, support its broader strategy, and complement its core energy business, the statement said.

“Bringing PIF and Aramco’s AI portfolio of investments together under HUMAIN creates a powerful synergy that fuels talent growth, technological advancement, and intellectual property creation,” said Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF.

“Fully aligned with PIF’s strategic objectives, this transaction accelerates HUMAIN’s growth into a global leader in the sector, strengthening AI as an enabler of PIF’s six ecosystems and further expanding private sector participation across our portfolio while advancing the development of cutting-edge technologies in Saudi Arabia.”

Aramco President & CEO Amin H. Nasser said he was proud of the achieved progress in developing and deploying advanced digital and AI technologies to enhance performance across the oil and gas sectors.

“Since 2023, Aramco has achieved $11.3 billion in Technology Realized Value, with a significant portion coming from AI solutions. This partnership with PIF strengthens Aramco’s position as a global technology leader and AI powerhouse, while laying the foundation for localizing the AI industry and enabling faster, more integrated, and scalable deployment of AI systems. AI will therefore play a vital role in the future of business. We are delighted to collaborate with PIF to help shape the future of AI regionally and globally,” he added.


Saudi Telecom Companies' Revenues Rise to $22 Billion in 9 Months

General view of Riyadh in the early evening hours (Reuters)
General view of Riyadh in the early evening hours (Reuters)
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Saudi Telecom Companies' Revenues Rise to $22 Billion in 9 Months

General view of Riyadh in the early evening hours (Reuters)
General view of Riyadh in the early evening hours (Reuters)

Saudi Arabia's three listed telecom operators posted combined revenues of more than $22.2 billion (83.42 billion riyals) in the first nine months of 2026, up 3.67% from a year earlier, as growing demand for consumer and business services, an improved revenue mix and expanding subsidiary operations fueled growth.

Revenues rose from about $21.46 billion (80.47 billion riyals) a year earlier, supported by growth in carrier and operator services alongside consumer and enterprise businesses.

stc dominated the sector, generating $16 billion (60.1 billion riyals), or roughly 72% of the three operators' combined revenues, up 3.75% year-on-year.

Mobily recorded a 5.07% revenue increase to $4.05 billion (15.19 billion riyals), while Zain Saudi Arabia posted a modest 0.57% rise to $2.17 billion (8.14 billion riyals).

Four telecom companies are listed on the Saudi stock market. stc, Mobily and Zain Saudi Arabia close their financial years in December, while Etihad Atheeb Telecommunication Co. (GO) ends its fiscal year in March.

Profits fall despite revenue growth

Despite rising revenues, the three operators' combined net profit slipped 2.07% to about $3.78 billion (14.17 billion riyals) in the first nine months of 2026, down roughly 300 million riyals from 14.47 billion riyals a year earlier.

The decline was driven by stc, whose net profit fell 5.71% to 10.92 billion riyals from 11.58 billion riyals in the same period of 2025.

Its rivals fared better. Mobily's net profit climbed 7.68% to 2.71 billion riyals from about 2.51 billion riyals, while Zain Saudi Arabia recorded a 45% surge to 541 million riyals from 373 million riyals.

stc's earnings were weighed down by nonrecurring items, lower finance income and higher financing costs, even as revenues and operating profit grew. Excluding nonrecurring items in both periods, the company said net profit rose 2.6%.

Mobily benefited from stronger revenues and improved gross profit. Zain Saudi Arabia's earnings were lifted by a better revenue mix, lower financing costs and a one-off gain from the Universal Service Fund.

Strong demand, uneven profits

The results underscore a widening gap between revenue growth and profitability across Saudi Arabia's telecom sector, where financing costs, operating expenses and nonrecurring items continue to shape earnings.

Suleiman Al-Humaid Al-Khaldi, a financial and economic expert, financial markets analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that the results reflected resilient demand and expanding telecom operations as Saudi Arabia accelerates its digital transformation.

He said the rise in combined revenues to 83.42 billion riyals confirmed continued business growth, even as profitability diverged among the three operators.

But higher revenues do not necessarily deliver proportionate gains in net profit, he said, pointing to financing costs, operating expenses and nonrecurring items.

With stc generating about 72% of the operators' combined revenues, its performance has an outsized impact on their overall financial results, even when rivals report stronger profits, Al-Khaldi said.

He cautioned against interpreting stc's reported earnings decline as a sign of operating weakness.

The company's operating profit rose 4.1%, while adjusted net profit grew 2.6% after excluding nonrecurring items in both periods, indicating that its core operations continued to expand and deliver positive results.

Mobily's stronger earnings reflected revenue growth and improved gross profit, while Zain Saudi Arabia benefited from a better revenue mix, lower financing costs and one-off income from the Universal Service Fund, he said.

Al-Khaldi stressed the need to distinguish recurring operating earnings from exceptional gains when assessing the sustainability of profit growth, particularly after Zain Saudi Arabia reported a third-quarter profit decline.

He said stc's underlying operations remained solid despite pressure from lower finance income, rising financing costs and differences in the impact of nonrecurring items.

Stc's share price fell from 42 riyals to 39 riyals, a decline of about 7.1% over the period under review, which Al-Khaldi said suggested relative price resilience. He cautioned, however, that the time frame mattered when comparing the stock with other Saudi blue chips.

A company's investment strength should not be judged on reported net profit alone, he said. The sustainability of operations, earnings quality and capacity to pay cash dividends were equally important, reinforcing stc's standing as a leading Saudi stock.

Looking ahead, Al-Khaldi forecast continued growth and improving profitability across the telecom sector, driven by expanding digital services and stronger demand for telecommunications and information technology solutions.

He also expected stc to deliver positive fourth-quarter and full-year 2026 results, surpassing the corresponding periods of 2025 as its core businesses continued to grow.

Rising revenues, squeezed margins

Mohamed Hamdy Omar, chief executive of G.World for Studies, said Saudi telecom operators' nine-month results exposed a clear disconnect between revenue growth and earnings.

Combined revenues rose 3.67% to 83.42 billion riyals, while net profit fell 2.16% to about 14.17 billion riyals, pointing to pressure on profit margins despite continued business expansion, he told Asharq Al-Awsat.

Omar identified three factors behind the divergence: financing costs, higher operating expenses and nonrecurring items.

First, telecoms remain a capital-intensive business. Network upgrades, wider fifth-generation (5G) coverage and investments in data centers and digital infrastructure require substantial spending, with some projects taking years to generate their targeted returns.

Second, the shift from traditional telecom services to technology-driven offerings is pushing up operating costs.

Expanding into cloud computing, cybersecurity, artificial intelligence and the Internet of Things requires investment in development, specialized talent and operations, adding near-term costs even as it strengthens long-term competitiveness.

Third, one-off items can distort reported earnings.

Omar pointed to stc's 2.6% adjusted net profit growth after excluding nonrecurring items in both periods, saying the figure highlighted the importance of separating underlying operating performance from headline profits.

The earnings at Mobily and Zain Saudi Arabia also revealed differences in how effectively operators improve their revenue mix, control costs and capitalize on business opportunities, he said.

The industry's next challenge will not simply be to generate more revenue, but to improve efficiency and turn heavy investment into cash flow and sustainable returns without eroding margins, Omar added.

Omar expects Saudi Arabia's telecom sector to maintain its growth momentum through the final quarter of 2026 and into 2027, supported by the expanding digital economy and the kingdom's accelerating technological transformation.

But the engines of growth are changing.

Rather than competing primarily through traditional connectivity services and subscriber growth, operators are increasingly turning to higher-value digital and technology offerings, he said.

Data centers, cloud computing and infrastructure supporting artificial intelligence applications stand out as major opportunities as demand rises for data processing, storage and transmission capacity.

Operators with advanced networks, extensive customer bases and established operational expertise are well positioned to capitalize on that shift, Omar said.

The enterprise and institutional market is also poised to become a major revenue driver as companies and government agencies seek more cybersecurity, cloud, Internet of Things and digital infrastructure management solutions.

Telecom operators that successfully evolve into integrated technology solutions providers will be better placed to diversify revenues and strengthen profitability, he added.

Saudi Arabia's megaprojects, expanding smart cities and growth in tourism, manufacturing, logistics and e-commerce should provide further opportunities for advanced connectivity and digital infrastructure in the coming years.

The transition will not be without risks.

Omar warned that high capital expenditure, rising financing costs, price competition in traditional services and lengthy investment payback periods could continue to weigh on profitability, particularly in data centers and artificial intelligence.

He expects telecom revenues to keep rising in the fourth quarter of 2026, but said stronger earnings would hinge on operators' ability to rein in expenses, manage financing costs and improve investment returns.

Competition in advanced digital services is likely to intensify in 2027, favoring companies that can diversify their income and make better use of existing infrastructure, he said.

Ultimately, Omar said, Saudi Arabia's telecom industry is undergoing a gradual shift from traditional connectivity toward a broader role in the data economy.

Its future competitive strength will depend less on subscriber numbers alone and more on how successfully operators turn their networks, assets and technological capabilities into higher-value digital services with sustainable profit margins.