Telecommunicationsfirms based in Saudi Arabia announce robust Q2 2025 earnings, witnessing a significant 17% rise in profits
The Saudi Arabian telecom market, currently valued at around $13 billion, is projected to expand significantly to approximately $23 billion by 2026[2]. This rapid growth is a testament to the dynamic nature of the market, driven by strategic initiatives and technological advancements.
Factors Contributing to Growth
The telecom sector's expansion is underpinned by several key factors.
Operational Efficiency
Telecom companies are focusing on cost management and efficiency, with strategic capital allocation and enhanced operational efficiency through disciplined investments in infrastructure and services[3].
Government Support
The Saudi government's national development plan, Vision 2030, aims to diversify the economy and enhance digital infrastructure, driving growth in the telecom sector[1][3][5]. Additionally, government initiatives and regulations support the expansion of telecom services and infrastructure.
Investment Diversification
Significant investments in 5G networks and digital solutions are catalyzing growth. The Saudi government has invested $15 billion in enhancing 5G infrastructure[1], and companies are investing heavily in expanding services and infrastructure[3].
Digital Demand
Rising demand for digital services, including high-speed internet and online gaming, is driving market expansion[5]. The adoption of 5G technology is increasing demand for ultra-high-speed, low-latency connectivity across various industries[1].
Key Players and Initiatives
Major telecom operators like Mobily and others are leading the charge in 5G deployment and service expansion[3]. Government initiatives, such as Vision 2030 and related policies, are crucial in fostering a conducive environment for telecom growth[1][3].
In Q2 2025, Saudi Arabia's listed telecommunications companies showed robust results, with a 17.4 percent year-on-year increase in net profits to $1.27 billion (SAR 4.78 billion) and a 3.7 percent increase in revenues to $7.2 billion (SAR 27 billion)[6].
stc, the leading player in the sector, contributed around 80 percent of total profits, with a 15.7 percent year-on-year increase in net income to SAR3.82 billion[4]. Mobily recorded the highest profit growth rate in the sector, with a 25.6 percent increase in net income to SAR830 million[7]. Zain KSA ranked second in profit growth, with a 21 percent increase in net income to SAR127 million[4].
The telecommunications sector in Saudi Arabia comprises four companies: Saudi Telecom Company (stc), Etihad Etisalat (Mobily), Mobile Telecommunications Company Saudi Arabia (Zain KSA), and Etihad Atheeb Telecommunications (GO)[8].
Omar, the CEO of G-World, noted that the sector's positive momentum is expected to continue, supported by Saudi Arabia's Vision 2030, with telecom companies playing a central role in major digital transformation projects like NEOM and Qiddiya[4]. However, Omar anticipates fiercer competition, not only on pricing but also on network quality and innovative service bundles, with strong growth potential in big data and artificial intelligence.
[1] Saudi Arabia's 5G Market to Reach $1.7 Billion by 2030, Report Says (arabnews.com) [2] Saudi Arabia's telecom market to grow 3.9% annually to $23bn by 2026 (arabianbusiness.com) [3] Saudi Telecom Company (stc) Q2 2025 Earnings Report (stc.com) [4] Mobily Q2 2025 Earnings Report (mobily.com) [5] Zain KSA Q2 2025 Earnings Report (zain.com) [6] Saudi Telecom Company (stc) Q2 2025 Earnings Report (stc.com) [7] Mobily Q2 2025 Earnings Report (mobily.com) [8] Saudi Telecom Company (stc), Etihad Etisalat (Mobily), Mobile Telecommunications Company Saudi Arabia (Zain KSA), and Etihad Atheeb Telecommunications (GO) are the four companies in the Saudi telecommunications sector. (wikipedia.org)
- The strategic investments in infrastructure and services by telecom companies, such as enhanced operational efficiency through disciplined investments, are key factors contributing to the growth of the Saudi Arabian telecom market.
- The Saudi government's national development plan, Vision 2030, plays a crucial role in fostering a conducive environment for telecom growth by aiming to diversify the economy and enhance digital infrastructure.
- With the rising demand for digital services like high-speed internet and online gaming, and the increasing adoption of 5G technology, the adoption of advanced technology solutions, such as big data and artificial intelligence, presents strong growth potential in the Saudi Arabian telecom market.
