Omar Maher, telecom sector analyst at EFG Hermes, said that the telecom sector in the Kingdom of Saudi Arabia is experiencing a huge boom due to the facilities and support it receives from the government to digitize the economy in general, and the demand is very large due to the good economic situation in the Kingdom now.
In an interview with Al-Arabiya channel, he explained that the main factor in the increase in the profits of the Saudi Mobile Telecommunications Company, Zain Saudi Arabia, is the retail sector, and the return of travel, in addition to the company’s efforts in the past years to spread fifth-generation networks, were among the main factors for the growth of profits in the retail sector.
While the business segment’s contribution to Zain’s revenue is still small compared to other competitors.
Maher expected that Zain Saudi Arabia would continue to grow in 2023, and said, “I believe that the company is currently in a strong position in terms of growth in financial services revenues.” Fintech has achieved significant growth recently, which is a promising sector. Customers, and also the business sector because of its small size has opportunities for growth in 2023 and beyond.
The net profit of the Saudi Mobile Telecommunications Company, “Zain Saudi Arabia”, increased by 157% in 2022, to about 550 million riyals, compared to 214 million riyals in 2021.
“Zain Saudi Arabia” described the net profit as the highest in its history, and attributed it in a statement to “Tadawul Saudi Arabia”, to achieving the highest revenues in the company’s history, which amounted to 9.1 billion riyals, an increase of 15% over the revenues of the year 2021, which amounted to 7.9 billion riyals, and this increase is due to the growth in Business sector revenues, 5G services and the return of international visitors (for Umrah and business) after easing the restrictions of the COVID pandemic, in addition to the growth in the revenues of Tamam Finance.