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Saudi Arabian Telecommunications Industry Thriving


Middle East : 19 July 2010

The mobile phone sector in the Kingdom of Saudi Arabia has recorded strong growth in the second quarter (Q2) of 2010.

Both Mobily and Zain Saudi Arabia have reported a substantial increase in revenue and profits.

Mobily has announced that its net profits have risen by 33% from SR675-million in the 2009 Q2 to SR901-million this year. The revenue for Mobily, which is part of the United Arab Emirates telecommunications company Etisalat, has increased to SR3.97-billion, which represents a rise of 10.9%. This is understood to be the biggest rise in net profit for a quarter since the company was launched five years ago.

According to Mobily chairman, Abdulaziz Alsaghyir, the performance of the company is due to both “postpaid customers” and a general increase in revenue from broadband usage. He said it was also due to a growth within the global “interconnection margin”.

The revenue for Zain Saudi Arabia has increased by a dramatic 107%, reaching SR1.5-billion. In last year’s Q2 the company’s revenue was only SR702-million. In addition, Zain has been able to reduce its nett losses substantially – in excess of 26% – from SR857-million in last year’s Q2 to SR632-million in the current Q2.

The managing director and CEO of Zain Saudi Arabia, Saad Al Barrack, announced that these savings were due to their ability to lower costs of calls within the country as well as substantial movement inside its “local network”. In addition, the company was operating more efficiently since it has been able to lower the cost of operating and boost revenue by broadening the infrastructure of the company.

Further confirming that the Telecommunications Industry within Saudi Arabia is thriving, Al Barrak said that Zain SA aimed to expand to include 93% of the inhabited regions in the country by the end of this year.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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