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Asharq Al-Awsat
27-04-2025
- Business
- Asharq Al-Awsat
stc Group Net Profit for First Quarter of 2025 Increases 11.05%
Saudi Arabia's stc announced on Sunday the company's preliminary financial results for the first quarter ending March 31, reporting revenues of SAR19,210 million, a 1.60% increase year-over-year. Gross profit rose by 5.01% to SAR9,098 million, operating profit increased by 2.02% to SAR3,584 million, and EBITDA grew by 5.25% to SAR6,120 million. Net profit for the quarter reached SAR3,649 million, representing an 11.05% increase compared to the same period last year. According to a statement issued by stc, the group distributed SAR0.55 per share for the first quarter of 2025, in accordance with the dividends distribution policy approved by the General Assembly. Commenting on the results, CEO of stc Group Eng. Olayan Alwetaid highlighted that the group's achievements were the result of its unwavering commitment to innovation, operational efficiency, and sustainable growth, as well as its relentless pursuit of creating added value for shareholders, customers, and the digital economy as a whole. He further added that, early in 2025, stc Group achieved several strategic milestones that further solidified its position in the telecommunications and information technology sector. Among these achievements was a new global milestone, as the group successfully localized the software for eSIM technology in collaboration with Thales, making stc the first telecom operator in the world to obtain SAS-UP license certification from the GSMA. He emphasized that this accomplishment complements stc's ongoing efforts to support local content in the ICT sector through business localization and the transfer of manufacturing and technical expertise to the Kingdom. In continuation of the group's efforts to enhance the digital communication infrastructure in the region, stc signed a strategic agreement with Ooredoo to establish an international ground fiber network corridor between Saudi Arabia and Oman. This strategic partnership aims to enhance the digital communication infrastructure in the region through the project, which starts with the Saudi-Oman corridor. The project will also create an integrated ground fiber network with two backup routes, connecting submarine cable landing stations on the Red Sea in Saudi Arabia to their counterparts on the Arabian Sea in Oman, passing through dedicated data centers in both countries. This agreement reaffirms the Group's commitment to delivering advanced communication solutions, enhancing intercontinental connectivity, and driving digital transformation to support the region's economic growth. The statement added that stc Group strengthened its position in cloud computing and artificial intelligence by signing an agreement with Amazon Web Services (AWS). This partnership significantly boosts the Group's ability to deliver advanced technological solutions tailored to the diverse needs of various sectors, while reaffirming its commitment to driving the shift toward an integrated digital economy and leading the future of smart technology in the Kingdom and beyond. Furthermore, as part of its commitment to providing the highest quality of digital services, stc Group enhanced its telecommunications network in the Two Holy Mosques during the holy month of Ramadan by strengthening its infrastructure to meet the growing demand for services during peak times. This upgrade resulted in a 120% increase in connection speed, enabling the Group to ensure an exceptional communication experience for visitors to the holy sites during the peak visitor periods.
Zawya
28-02-2025
- Business
- Zawya
Investment fuels growth across Saudi real estate sectors
Saudi Arabia's residential market is expected to experience significant growth over the next few years, driven by a strong economic foundation, rapidly growing population, positive demographics, and increasing demand for new homes, particularly in Riyadh, Jeddah, and Dammam, according to CBRE Middle East, the global leader in commercial real estate. This demand is driving prices and rental rates higher, a trend that is expected to continue, with the value of new residential mortgages in the Kingdom rising 17% year-on-year in 2024, satted CBRE in its latest edition of the Saudi Arabia Real Estate Market Review for Q4 2024. The strong market growth is reflected in rising property values in Riyadh, with average prices increasing by over 6% in the past year, it added. As new, high-quality units enter the market, prices are anticipated to continue to rise in 2025. In Riyadh, the villa market has seen steady growth, with average prices now approaching SAR6,000 per sq m. In Jeddah, apartment values are slightly lower, averaging approximately SAR4,000 per sq m, while villa values are notably higher, reaching nearly SAR5,700 per sq m, it added. On the office sector, CBRE said the demand for space remained strong through year-end 2024 in the Saudi capital, though transactional activity is now clearly being constrained by the lack of space for immediate lease and occupation. The high occupancy rates across the capital's prime office districts reflect the strong prevailing demand, driven by the kingdom's thriving non-oil economy which is a key component of the government's Vision 2030 diversification strategy, it stated. In the 12 months to Q4 2024, occupancies have remained close to capacity and rental rates have also continued to move upwards, it added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
28-02-2025
- Business
- Trade Arabia
Investment fuels growth across Saudi real estate sectors
Saudi Arabia's residential market is expected to experience significant growth over the next few years, driven by a strong economic foundation, rapidly growing population, positive demographics, and increasing demand for new homes, particularly in Riyadh, Jeddah, and Dammam, according to CBRE Middle East, the global leader in commercial real estate. This demand is driving prices and rental rates higher, a trend that is expected to continue, with the value of new residential mortgages in the Kingdom rising 17% year-on-year in 2024, satted CBRE in its latest edition of the Saudi Arabia Real Estate Market Review for Q4 2024. The strong market growth is reflected in rising property values in Riyadh, with average prices increasing by over 6% in the past year, it added. As new, high-quality units enter the market, prices are anticipated to continue to rise in 2025. In Riyadh, the villa market has seen steady growth, with average prices now approaching SAR6,000 per sq m. In Jeddah, apartment values are slightly lower, averaging approximately SAR4,000 per sq m, while villa values are notably higher, reaching nearly SAR5,700 per sq m, it added. On the office sector, CBRE said the demand for space remained strong through year-end 2024 in the Saudi capital, though transactional activity is now clearly being constrained by the lack of space for immediate lease and occupation. The high occupancy rates across the capital's prime office districts reflect the strong prevailing demand, driven by the kingdom's thriving non-oil economy which is a key component of the government's Vision 2030 diversification strategy, it stated.
Zawya
27-02-2025
- Business
- Zawya
Investment fuels growth across Saudi Arabia's real estate sectors
Saudi Arabia, Riyadh – CBRE Middle East, the global leader in commercial real estate, released its latest edition of the Saudi Arabia Real Estate Market Review for the fourth quarter of 2024. In Riyadh, demand for space in the Office Sector remained strong through year-end 2024, though transactional activity is now clearly being constrained by the lack of space for immediate lease and occupation. The high occupancy rates across the capital's prime office districts reflect the strong prevailing demand, driven by the Kingdom's thriving non-oil economy which is a key component of the government's Vision 2030 diversification strategy. In the 12 months to Q4 2024, occupancies have remained close to capacity and rental rates have also continued to move upwards, with Riyadh experiencing a substantial 18% increase in average rents. Growth in Jeddah and Dammam was less pronounced, at approximately 10% and 12% respectively, highlighting the particularly acute supply challenges in Riyadh. The surging demand and subsequent scarcity of accommodation is also reflected in other broader market trends, including landlords seeking to maximize opportunities in new leases and renewals. Despite the rapidly rising rents, global occupiers and investors remain attracted to the Kingdom, as reflected in the continuation of the RHQ license growth through Q4. Saudi Arabia's Residential Market is expected to experience significant growth over the next few years, driven by a strong economic foundation, rapidly growing population, positive demographics, and increasing demand for new homes, particularly in Riyadh, Jeddah, and Dammam. This demand is driving prices and rental rates higher, a trend that is expected to continue, with the value of new residential mortgages in the Kingdom rising 17% year-on-year in 2024. The strong market growth is reflected in rising property values in Riyadh, with average prices increasing by over 6% in the past year. As new, high-quality units enter the market, prices are anticipated to continue to rise in 2025. In Riyadh, the villa market has seen steady growth, with average prices now approaching SAR6,000 per square meter. In Jeddah, apartment values are slightly lower, averaging approximately SAR4,000 per square meter, while villa values are notably higher, reaching nearly SAR5,700 per square meter. Saudi's POS data reflected the country's strong underlying fundamentals and year-on-year growth in the Kingdom's Retail Market, up around 9% from 2023. The F&B market continues to play a key role in driving overall sales, albeit growth slowed from the previous year, growing by around 7% year-on-year versus 14% in the year to December 2023. Several major shopping centres are expected to be completed in the coming years, which will help to change the landscape of country's retail market. Whilst market dynamics have been improving, with rising rental rates and occupancy rates in recent quarters, the quantum of new space expected in the medium term may shift the dynamic back in the tenant's favour. Looking at the Hospitality Sector, according to Saudi's Minister of Tourism, the Kingdom recorded close to 30 million bound tourists in 2024, up from 27.4 million in 2023. This has helped the sector contribute close to 5% of the country's total GDP and put it on track to reach a targeted 10% contribution by the end of 2030. Over the same period, Saudi Arabia is targeting a significant increase in inbound tourism, aiming to attract 70 million visitors and a total of 170 million tourists annually. This ambitious goal is being supported by the country's strategic investment initiatives, designed to broaden and deepen the visitor profile. The Kingdom is also leveraging its major global sporting events, including the 2034 FIFA World Cup, to further enhance its appeal to international visitors. While the long-term prospects for Saudi's tourism industry are promising, the recent surge in new hotel supply has led to a slight decline in occupancy rates, down 1.7% year-on-year in December. Average daily rates (ADRs) increased 2.1% during the same period, resulting in a relatively stable revenue per available room (RevPAR) compared to the full year. Meanwhile, key business and MICE markets such as Riyadh saw more positive movements across all performance metrics, including strong growth in ADRs and RevPAR, and a more marginal increase in average occupancy rates. Similarly, markets like Dammam and Medina, also saw positive dynamics prevail. With room growth expected to accelerate in the coming 12-24 months, hotels are likely to experience heightened competition, particularly in markets like Jeddah and Makkah where a significant volume of new keys are expected to complete. In Saudi Arabia's Industrial and logistics Sector, The Saudi Authority for Industrial Cities and Technology Zones (MODON) significantly expanded its commitment to developing the Kingdom's industrial landscape in Q4 2024, signing substantial private sector partnerships. The initiatives focus on enhancing infrastructure, expanding industrial cities, and constructing ready-made factories to attract investment. Notably, 247 ready-built factories will be constructed across several industrial cities, including a dedicated food cluster in Jeddah, offering businesses streamlined market entry as part of the country's food security strategy and wider plans for boosting domestic production capability. MODON is also investing heavily in upgrading existing infrastructure, targeting road networks, water systems, electricity services, and safety measures. Amidst strong non-oil growth and rising investments, industrial rents are continuing to move higher. In Riyadh, average rates reached approximately SAR 215 square metre per annum, whilst prime properties in the eastern part of the city currently command the highest rents, while central locations, impacted by congestion, remain more affordable. Matthew Green, Head of Research MENA, comments: 'Saudi's real estate market continues to benefit from the country's strong non-oil sector and wider investment environment, driven by the highly successful RHQ initiative which continues to see the set-up of new regional headquarter offices, supporting growth not only in the commercial market but across the wider economy.' About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at
