AMSTERDAM: Dutch telecom group Veon, which owns Ukraine’s biggest mobile operator Kyivstar, posted higher second quarter core earnings on Thursday thanks to strong customer gains across its services.
Core profit rose 13.9% on a local currency basis to $459 million, the company said.
“Robust organic performance across our markets is driven by 10 million additional 4G customers, 111 million digital service users, showcasing our capability to build new businesses in financial, entertainment, healthcare, education, and enterprise services,” CEO Kaan Terzioğlu said in a statement.
Its total digital monthly active users grew by 47.3% to 111 million.
Since Veon’s exit from its main market Russia last year, it has been focused on expanding its telecom services in countries where it is still present, including Ukraine, Pakistan, Kazakhstan and Bangladesh.
In Ukraine, sales grew by 9.5% and core profit increased by 9.8% despite higher energy costs, the group said.
Ukrainian telecom operators like Kyivstar have been impacted by Russian attacks on the nation’s power grid. Kyivstar was also hit by a massive cyberattack last year.
“Nearly 100% of our radio network is operational across all territories controlled by Ukraine at the end of the quarter,” Veon said.
In Pakistan, where Veon owns the country’s largest telecom provider Jazz, sales grew by 24.2%. In Kazakhstan, where it operates through the Beeline brand, they rose 18.8%.
Last week, the company said it intended to de-list from Euronext Amsterdam and be solely listed in New York. It will keep its headquarters in Amsterdam.
Veon on Thursday also confirmed its sales and core profit forecasts for the full year.
Veon posts 13.9% jump in core profit, boosted by customer gains in countries like Pakistan
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Veon posts 13.9% jump in core profit, boosted by customer gains in countries like Pakistan
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- The company’s sales grew by 24.2% in Pakistan where it owns the largest telecom provider Jazz
- The top Veon official mentions ‘robust organic performance’ across services in different markets
Saudi Arabia is committed to fostering an open, competitive environment: Al-Falih
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RIYADH: Saudi Investment Minister Khalid Al-Falih has reiterated the Kingdom’s dedication to multilateralism, emphasizing its commitment to fostering an open and competitive environment.
In an interview with CNBC, Al-Falih underscored the importance of globalization and noted Saudi Arabia’s active involvement in global forums and discussions in the face of rising uncertainties.
He said the Kingdom recognizes the risks and advocates for “multilateralism, trade, and investment.”
Al-Falih highlighted Kingdom’s participation in global forums and bilateral discussions saying it reflects the country’s commitment to fostering an open and competitive environment.
“We believe that globalization will survive—it has to,” Al-Falih said.
Commenting on the declining interest rates worldwide, the minister said that “the risk barometer is slowly coming down.”
He said: “We are very vigilant in Saudi Arabia. We’re managing our risks. We’re concerned about rising debt in both developed and developing countries.”
The minister also reflected on the positive shifts in the global economic landscape over the past two years. He pointed out that in 2022, the world grappled with significant challenges, including high energy prices, food insecurity, elevated inflation, rising interest rates, and stressed employment conditions.
Today, significant improvements have been seen in addressing past economic challenges. Inflation has been controlled, interest rates are declining, and overall economic risks are diminishing.
“In Saudi Arabia, we have maintained our debt-to-gross domestic product (ratio) below 30 percent … as our economy went up, our debt was going up slower,” Al-Falih said.
The minister said the Kingdom’s corporate sector remains robust with low leverage and the Kingdom’s trade environment is open.
“We’re not taking the severe measures of protectionism. This is the spirit of Saudi Arabia,” he added.
Al-Falih emphasized that achieving strategic goals requires more than just setting a vision and targets. It involves sustained effort and meticulous planning. Strategies need to be divided into sector-specific plans and actionable initiatives, with active participation from all stakeholders, particularly the private sector in Saudi Arabia.
The private sector “has been a key contributor, and global investors, technology owners, brands, and intellectual property stakeholders” must also be engaged.
He said it is crucial for the government “to be led by a leader who has the trust and confidence of the people.”
Al-Falih continued: “The people of Saudi Arabia have been steadfast, and their commitment to Vision (2030) and the leadership of the country and the nation and the government is unequivocal while many other countries and governments were challenged, Saudi Arabia was leapfrogging ahead.”
Regarding the shift in perception from a capital-surplus economy to an attractive investment destination, Al-Falih noted that Saudi Arabia has been known as a capital-surplus economy for decades, but changing perceptions has not been overly difficult. Global investors are seeking destinations with key parameters such as stability and long-term vision, he added.
He highlighted that Saudi Arabia now meets these criteria, making it an appealing location for international investment.
“They (investors) want a country that is young. They want talent. They want access to local talent in the market ... Saudi Arabia ticks all of the boxes,” Al-Falih said.
The minister also discussed Saudi Arabia’s strategy to attract international investment, focusing on becoming a prime destination for near-shoring and green energy.
Green shoring combines several advantages in one location: access to materials and energy, robust logistics and infrastructure, skilled workforce, and financial resources.
He added: “Come to Saudi Arabia, you will access the three continents that we are the intersection of as part of Vision 2030, we will address global supply chain, and resilience issues as we build a new global economy that is certainly moving.”
Al-Falih emphasized that Saudi Arabia has a strong track record of executing large projects efficiently and on time, with significant investor interest and upcoming project announcements as part of Vision 2030. He also outlined the Kingdom’s role in promoting regional and global stability, highlighting efforts in various conflict zones.
The minister said Saudi Arabia’s efforts extend beyond political and security issues to include economic stability.
Vision 2030 engages the population, especially the youth and entrepreneurs, and serves as a positive example for neighboring countries facing conflicts, he added.
Qassim region sees 14.5% growth in commercial records
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RIYADH: Commercial records in Saudi Arabia’s Qassim region have surged by 14.5 percent over the past six years, reflecting a vibrant increase in economic activity, according to a top official.
Saudi Arabia’s Commerce Minister Majid Al-Qasabi highlighted that the total number of commercial records in the region reached 77,900 by the end of August, up from 68,000 at the end of 2018. This growth, reported by the Saudi Press Agency, underscores the region’s expanding business environment and the government's commitment to enhancing commercial sectors.
The announcement was made during a recent meeting at the Qassim Chamber, attended by ministers, business leaders, and entrepreneurs. The gathering addressed various challenges and opportunities facing the local business community and is part of the Ministry of Commerce’s broader initiative to engage with stakeholders and support key sector development across the Kingdom.
Qassim’s economic progress aligns with Saudi Arabia’s Vision 2030 objectives, which aim to diversify the national economy and reduce reliance on oil revenues. The commercial sector, especially in regions like Qassim, plays a crucial role in this transformation. Significant advances have been observed across various industries, with sectors such as light transport, logistics, and petrochemical construction showing growth rates between 67 percent and 96 percent.
The Qassim region is also prominent in Saudi Arabia’s agricultural sector, particularly in date production. Al-Qasabi emphasized the strategic importance of the Buraidah Dates Festival, noting that the region produces one-third of the country’s dates. He advocated for the festival's institutionalization and enhanced marketing, stressing the need for research and development in the date industry and stronger collaboration between farmers, marketers, and the National Center for Palms and Dates.
Al-Qasabi discussed the government’s recent reforms aimed at empowering Chambers of Commerce. The new system for chambers is designed to improve governance and create a more attractive investment environment, allowing sectors with comparative advantages to thrive.
The minister also provided an update on the Ministry of Commerce’s efforts to improve the business landscape in Saudi Arabia. Over 110 regulations have been reviewed and updated, including those on e-commerce, franchises, and company law. The National Competitiveness Center has completed 820 reforms in collaboration with 60 government entities and the private sector to enhance the business environment.
In support of small and medium enterprises, Al-Qasabi highlighted the critical role of the General Authority for SMEs, which focuses on financing, entrepreneurship, innovation, and market access. He encouraged SMEs and entrepreneurs to seize upcoming opportunities, such as the Biban 24 Forum, scheduled to be held in Riyadh in November.
Oman state-run oil firm OQ will make initial public offering and potentially seek billions
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DUBAI: An Omani state-run oil and gas company announced Monday it will make an initial public offering of its exploration and production business, potentially seeking billions in a major move toward privatization in the sultanate.
OQ, formerly known as the Oman Oil Co., follows moves by the Saudi oil giant Aramco and the Abu Dhabi National Oil Co. to seek to raise money through the markets. It also could provide a boost for its local Muscat Stock Exchange.
OQ will offer up to 25 percent of shares in its exploration and production arm, the announcement said. It offered no proposed values for the deal, though Bloomberg quoted anonymous officials with knowledge of the deal suggesting the company could be worth an overall $8 billion, making the stake being put up worth some $2 billion.
“The intention to float OQ Exploration and Production reflects our commitment to unlocking new opportunities for growth, both for the company and for the sultanate of Oman,” OQ CEO Ashraf Hamed Al Mamari said in a statement.
The plan calls for the listing to take place in October, pending regulatory approvals. It plans dividends of $150 million for the first two quarters after that, with a planned dividend of $600 million annually, plus one linked to its performance.
OQ was founded in 2009 and is Oman’s third-largest firm in the oil industry, following the state-owned Petroleum Development Oman and US firm Occidental Petroleum.
Oman, on the eastern edge of the Arabian Peninsula, is a member of the OPEC+ coalition. It produces around 1 million barrels of oil a day and China remains the top client for its crude.
Closing Bell: Saudi main index closes in red at 11,962
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RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 19.40 points, or 0.16 percent, to close at 11,962.90.
The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), as 113 of the listed stocks advanced, while 109 retreated.
The MSCI Tadawul Index decreased by 0.27 points, or 3.99 percent, to close at 1,490.12.
The Kingdom’s parallel market Nomu slipped, losing 245 points, or 0.95 percent, to close at 25,495.79. This comes as 25 of the listed stocks advanced, while 44 retreated.
The best-performing stock of the day was Saudi Fisheries Co., with its share price surging by 9.90 percent to SR27.75.
Other top performers included Saudi Cable Co., which rose by 8.87 percent to SR81, and and Tourism Enterprise Co., which saw its share price increase 6.74 percent to SR0.95.
The worst performer of the day was Saudi Industrial Export Co., whose share value fell by 9.84 percent to SR2.75.
East Pipes Integrated Co. and Fawaz Abdulaziz Alhokair Co. also saw significant declines, with their shares dropping by 4.24 percent and 3.50 percent to SR140 and SR11.02, respectively.
On the announcement front, Al-Khaleej Training and Education Co. has submitted a request to the Capital Market Authority to increase its capital by issuing 22.65 million new shares to the shareholders of Adhwa’a Al-Hidaya Private Schools Co.
The company will acquire 1.6 million shares, representing 80 percent of Adhwa’a Al-Hidaya’s capital, through this issuance.
AlKhair Capital, as the financial advisor for First Avenue Real Estate Development Co.’s offering, announced a price range of SR5.7 to SR6 per share for its 16.42 million ordinary shares, representing 8.01 percent post-offering. The bidding period for qualified investors will run from Sept. 10 to 16.
Saudi Arabia and GCC drive global sukuk market amid economic diversification push: Moody’s
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RIYADH: The global sukuk market is poised for a strong performance in 2024, with issuance volumes expected to surpass those of 2023 despite a slowdown in the year’s second half.
According to a report by the global credit rating agency Moody’s, the issuance of Shariah-compliant bonds could reach between $200 billion and $210 billion this year, up from just under $200 billion in 2023.
This growth is being fueled by robust sovereign issuance across the Gulf Cooperation Council and Southeast Asia, with Saudi Arabia playing a leading role.
Economic diversification efforts and the issuance boom
The GCC region remains strong in the global sukuk market, accounting for a substantial share of the total issuance in 2024.
In the first half of 2024, GCC sukuk issuance grew 138 percent year on year, reaching $69.2 billion.
Saudi Arabia led this surge, comprising 37 percent of the total issuance.
The Kingdom’s efforts to diversify its economy have bolstered investor confidence, making it a key market for the financial instrument.
In the first half of 2024, the nation issued $17 billion in sukuk, primarily to refinance debt maturing later this year, as well as in 2025, and 2026.
This pre-financing strategy is expected to continue throughout 2024 as Saudi Arabia accelerates key strategic projects tied to Vision 2030. It also reflects efforts toward economic diversification, a cornerstone of the blueprint that aims to reduce the Kingdom’s dependency on oil revenues.
Abdulla Al-Hammadi, the assistant vice president and an analyst at Moody’s, emphasized Saudi Arabia’s key position in the market, saying: “We expect full-year 2024 sukuk issuance volumes to exceed 2023, supported by strong sovereign issuance across the Gulf Cooperation Council and Southeast Asia, and from Saudi Arabia (A1 positive) and Malaysia (A3 stable) in particular.”
The Kingdom’s borrowing activities align with broader efforts to deepen its capital markets. The government has expanded its borrowing program to build its general reserves and finance major investments.
This proactive fiscal policy is not just about addressing short-term financing needs; it is designed to maintain a robust presence in global debt markets and ensure steady progress on 2030’s ambitious goals.
Other GCC countries, including the UAE and Qatar, have also experienced significant growth in sukuk issuance.
The UAE saw its volumes double to $8.6 billion in the first half of 2024, while Qatar witnessed a 258 percent year-on-year increase, reaching $4.57 billion.
Both nations are implementing economic diversification strategies similar to those of Saudi Arabia, further cementing the region’s dominance in the sukuk market.
Southeast Asia, particularly Malaysia and Indonesia, is a vital region for these bonds.
Malaysia, with its comprehensive Islamic finance ecosystem, accounted for nearly 30 percent of the total issuance in the first half of the year.
Indonesian issuance is expected to rise in the latter half of 2024 as the government looks to fund its budget deficit and refinance existing sukuk.
Sustainable sukuk and ESG initiatives
A notable trend in 2024 has been the growing prominence of green and sustainable sukuk.
These instruments, which align with environmental, social, and governance principles, are increasingly attractive to global investors.
Saudi Arabia, in particular, has been a driving force behind this trend, issuing significant volumes of ESG-linked sukuk.
In the first half of the year, issuances in this area reached $6 billion, with Saudi Arabia, the UAE, and Indonesia leading the charge.
As the global focus on sustainability grows, the Kingdom has taken steps to promote investments in green projects, which is in line with its commitment to environmental stewardship.
Notable issuances include Al Rajhi Bank’s first dollar-denominated sustainable sukuk, valued at $1 billion, and Alinma Bank’s $1 billion additional tier one capital sukuk.
These reflect Saudi Arabia’s intention to maintain leadership in sustainable finance while encouraging private sector participation in ESG initiatives.
Outlook for 2024 and beyond
Moody’s report highlights that while sukuk issuance is expected to slow in the second half of 2024, the long-term growth prospects for the market remain robust.
Sovereign issuances from the GCC and Southeast Asia will remain strong, driven by continued efforts to diversify economies away from oil. By the end of the year, sovereign issuances by countries in the bloc, led by Saudi Arabia, could total $100 billion.
The increasing demand for sukuk is not limited to traditional Islamic markets, with investors worldwide are highly interested in these finance products, particularly green and sustainable offerings.
Al-Hammadi highlighted: “The pool of investors will continue to grow, thanks to the growing popularity of Islamic products beyond core Islamic markets, rising demand for green and sustainable sukuk, and the increasing sophistication and diversity of Islamic instruments.”
Saudi Arabia is well-positioned to benefit from this trend, with its deepening capital markets, a growing reputation as a leader in sustainable finance, and robust economic reform agenda.