Arab Palestinian Investment Company achieved USD 9mln in net profits attributed to its shareholders in 2024
RAMALLAH, Palestine/PRNewswire/ -- Arab Palestinian Investment Company announced its consolidated preliminary (unaudited) financial results for 2024. In his statement, Chairman and CEO of the company Tarek Aggad announced that the company's total revenues in 2024 reached USD 1.12 billion, a decline of 6% when compared with 2023. EBITDA amounted to USD 68.4 million, a decline of 6%. The group's net profits amounted to USD 8 million, a decline of 57%, while net profits attributed to the company's shareholders amounted to USD 9 million, a decline of 49%. Earnings per share amounted to USD 0.073, a decline of 49% year on year.
Total assets in 2024 amounted to USD 842 million, an increase of 5.5% over the previous year, while net equity attributed to the company's shareholders amounted to USD 189 million, an increase of 2.4%.
Aggad stated that 2024 was an extremely difficult year filled with challenges. However, the company managed to achieve acceptable profits for its shareholders. He outlined the reasons behind the decline in the company's profits in 2024 compared to 2023, with the most significant being the repercussions of the war on Gaza and the sharp decline in commercial activity due to restrictions imposed by the occupation. These included city closures in the West Bank and limitations on the movement of people and goods to and from Palestine. Additionally, there were significant delays in clearing equipment and goods, leading to increased clearance and storage costs. Furthermore, the economic situation is dire, worsened by the occupation's withholding of funds from the Palestinian Authority (PNA), which has crippled the Palestinian government's ability to pay its employees in full and fulfill its financial obligations, particularly to the private sector.
He added that the Palestinian Authority's direct and indirect debt to subsidiaries of the group reached around USD 107 million by the end of 2024, a significant portion of this debt is owed to Medical Supplies and Services Company (MSS). He went on to add that the delays in government tenders, particularly within the medical sector, severely impacted the revenue of MSS, especially in fulfilling tenders intended for Gaza. Moreover, the construction sector witnessed a steep decline, with a reduction rate of 60% in 2024, which severely affected the results of National Aluminum and Profiles Company (NAPCO). The demand on vehicles in Palestine also saw a dramatic decrease of around 60% in 2024, significantly impacting the sales of the Palestine Automobile Company. The purchasing power of Palestinian consumers has also plummeted, with many turning to cheaper alternatives due to the sharp drop in income. The demand on imported goods in Palestine and Jordan has declined due to the boycott of numerous of foreign goods, which affected the sales of Unipal General Trading Company. The widespread economic downturn also led to a substantial reduction in spending on promotional campaigns, advertising, and public relations by most Palestinian companies, which in turn severely affected the revenues of Sky Advertising and Promotion Company and its subsidiary, Oyoun Media. Furthermore, there was a major shortage of essential supplies faced by some subsidiaries due to logistical problems with some global suppliers, in addition to the continuous rise in the cost of the global supply chain, especially the increase in the cost of raw materials, shipping, storage, energy, and insurance. Therefore, these factors have all negatively impacted the operational performance of subsidiaries.
Aggad added that the group witnessed an increase in the financing costs of around USD 4 million in 2024, due to the continued global rise in interest rates. Also, there was an accounting impact related to the application of International Accounting Standard No. 29 on the results of Siniora's Turkish subsidiary Polonez of around USD 5 million in 2024, since Turkey is classified as a hyperinflationary country. All these reasons combined led to lower profits in 2024 versus 2023.
Aggad emphasized that the company remains committed to its pioneering role in the communities within which it operates. In 2024, it allocated around USD 1.6 million to social responsibility, supporting numerous associations and institutions dedicated to orphans, individuals with special needs, mental health, healthcare, education, and youth, among others.
APIC is a public shareholding investment company listed on the Palestine Exchange (PEX: APIC). It holds diversified investments across the manufacturing, trade, distribution and service sectors in Palestine, Jordan, Saudi Arabia, the United Arab Emirates, Iraq and Turkey through its group of subsidiaries: Siniora Food Industries Company; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Reema Hygienic Paper Company; Sky Advertising and Promotion Company; Arab Leasing Company and Arab Palestinian Storage and Cooling Company, employing over 3200 staff through its group of subsidiaries. For more information, visit https://apic.ps/.
SOURCE Arab Palestinian Investment Company (APIC)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
12 hours ago
- Middle East Eye
Israeli move to cut cooperation with Palestinian banks could devastate economy, EU warns
The EU has warned that Israeli Finance Minister Bezalel Smotrich's order to cancel a waiver on cooperation between Israeli and Palestinian banks could 'devastate' the Palestinian economy and precipitate the collapse of the Palestinian Authority (PA). 'The European Union is deeply concerned by the instruction by Israel's finance minister Smotrich to cancel the waiver on cooperation with Palestinian banks, which could cut them off from the Israeli financial system, devastate an already crippled Palestinian economy, and may lead to the collapse of the Palestinian Authority,' EU spokesman Anouar El Anouni said. He added that the EU was urging Israel 'to revert this decision immediately and to refrain from any action that could lead to the collapse of the Palestinian Authority'. Cancelling the waiver would require approval by Israel's security cabinet. No date for a vote has been set and it was not clear whether it would pass.
The National
17 hours ago
- The National
Bezalel Smotrich blocks Israeli and Palestinian banks from working together
Israel's Finance Minister has cancelled a waiver allowing Israeli banks to work with Palestinian counterparts in a move that could paralyse the Palestinian economy. It comes hours after the UK and other countries imposed sanctions on him and another hard-line minister. Bezalel Smotrich had threatened in May last year to cut the vital connection between Israel and Palestinian banks in the occupied West Bank in retaliation for the recognition of the State of Palestine by three European countries. A statement issued by the Israeli Finance Minister's office on Wednesday read: "Against the backdrop of the Palestinian Authority's delegitimisation campaign against the State of Israel internationally, Finance Minister Bezalel Smotrich has instructed Accountant General CPA Yali Rothenberg to cancel the indemnity provided to correspondent banks dealing with banks operating in Palestinian Authority territories." The Palestinian financial and banking system is dependent on the regular renewal of the waiver. It protects Israeli banks from potential legal action relating to transactions with their Palestinian counterparts, for instance in relation to financing terrorism. The move comes after the UK, Canada, New Zealand and Norway announced sanctions on Mr Smotrich and Israeli Security Minister Itamar Ben-Gvir over links to "extremist violence and serious abuses of Palestinian human rights", the countries said in a joint statement. This is not the first time Mr Smotrich has sought to punish Palestinians for international condemnation of Israel's occupation and actions. After Norway, Ireland, Spain, Armenia and Slovenia announced their recognition of a Palestinian state last year, the minister announced Israel would recognise five illegal Israeli settlements in the occupied West Bank, a territory he has repeatedly called for his country to annex. In July, G7 countries urged Israel to "take necessary action" to ensure the continuity of Palestinian financial systems. It came after US Treasury Secretary Janet Yellen warned that "to cut Palestinian banks from Israeli counterparts would create a humanitarian crisis". The overwhelming majority of financial exchanges in the West Bank are in shekels, Israel's national currency, because the Palestinian Authority does not have a central bank under which it could print its own currency. But Israeli banks were continuing to work with Palestinian branches because of the waiver. The UN has warned that 'unilaterally cutting off Palestinian banks from the global banking system would be a violation of the fundamental principles of international law'. This pressure had until now pushed the Israeli government to continue agreeing to short extensions of the waiver, but far-right ministers such as Mr Smotrich and Mr Ben-Gvir have long objected.
Arabian Post
20 hours ago
- Arabian Post
Loyyal Expands Maharaja Club with Global Shopping Rewards
Air India has partnered with blockchain-based loyalty specialist Loyyal to allow Maharaja Club members to earn points on everyday purchases across key brands in the United States and the United Kingdom. The collaboration enables members to accrue Maharaja Points on shopping at major retailers such as Walmart, Victoria's Secret, New Balance, GAP, Victorinox and Alamo – marking a significant expansion of the airline's loyalty programme. Members now earn up to 99 Maharaja Points per USD 100 spent at Walmart, 310 points per GBP 100 at Victoria's Secret, 300 points at Victorinox, 45 at New Balance, 180 at GAP and 64 points at Alamo. These offerings are accessible via the Maharaja Club Partner Offers page on Air India's website, where members can select a brand and follow on-screen prompts to initiate their purchases. Shailesh Kumar Singh, Head of Loyalty at Air India, commented that the alliance with Loyyal 'makes it easier for our members to earn Maharaja Points on everyday essentials and shopping, without needing to fly frequently'. Meanwhile, Loyyal CEO Ashish Kumar Singh noted that the initiative 'significantly boosts the earning potential for Maharaja Club's members,' adding that it enriches daily experiences and complements travel benefits. ADVERTISEMENT The partnership follows a broader revamp of the Maharaja Club, which adopted a simplified tier structure, updated identity and enhanced customer features. Air India has added more than 50 non-airline partners over the last 18 months, supporting its transformation under the strategy and leveraging its Star Alliance membership. The move aligns with global loyalty trends, where airlines increasingly engage shoppers via retail partnerships. By enabling points accrual through non-travel spend, loyalty programmes become more relevant to everyday consumer behaviour, fostering engagement beyond flight activity. Consumers, meanwhile, gain tangible value even during non-travel periods. Maharaja Club's integration with Star Alliance further enhances its value proposition. As noted by Air India's own commentary, elite-tier members benefit from worldwide priority check-in, lounge access at over 1,100 locations, extra baggage allowance, and the ability to accrue and redeem points across the alliance's 25 carriers. These features remain central to the programme's repositioning. Industry analysts highlight that Loyyal's blockchain-based platform offers secure, transparent point tracking and easier integration of diverse partners. Though Air India and Loyyal have not disclosed technical details publicly, Loyyal's existing reputation in travel loyalty schemes supports confidence in seamless implementation. Under the agreement, Air India continues to broaden access to Maharaja Points across shopping categories. The move targets customers traveling abroad or residing outside India, reinforcing Air India's global outreach following its Tata Group-led transformation. In support, the programme emphasises that points can be redeemed for award flights and cabin upgrades through Air India or Star Alliance partners. The timing of the launch coincides with Air India's widened network with new interline agreements and route expansions, such as recent pacts with airlines like airBaltic, Cyprus Airways and Uzbekistan Airways, aimed at increasing global connectivity. As passengers gain more travel options, the value of earning and using loyalty points is projected to grow. As more household and lifestyle brands are added to the programme, members could diversify their point accrual even further. Air India has indicated that additional partners will be announced in due course, though specifics have not yet been released. Maharaja Club members benefit from streamlined user experience with clearly stated earning rates for each participating brand. For example, spending at Victoria's Secret yields 310 points per GBP 100, while spending at Victorinox delivers 300 points per USD 100 – figures that are prominently showcased on the shopping portal. Air India's alignment with Loyyal fits within its hospitality-driven repositioning under along with fleet modernisation, training investments, new routes, and enhanced premium services. The airline aims to appeal to international leisure and business travellers – particularly those based abroad – by offering points that can accrue through both travel and lifestyle spending. Industry commentators suggest that Loyyal's blockchain solution offers underlying benefits including transparent audit trails, fraud reduction and easy tracking of reward accrual from non-travel sources. This increases both partner and consumer confidence in the integrity of the loyalty ecosystem.
