Persistent strong growth of non-hydrocarbon sectors, such as manufacturing, construction and transportation, and their increasing contribution to the GDP is expected to continue, with the government inclined on structural reforms of the economy.
In terms of value traded, Saudi Arabia had an exceptional 2012, with a 76 per cent increase over 2011’s value of $291 billion. But value traded dropped 39 per cent in Q1 2013 to $201 billion, from $332 billion in Q1 2012.
With low public debt, abundant foreign exchange and continued public and private investment across the board, market liquidity is expected to rise over the rest of the year.
Source: Reuters Eikon, Markaz Research.
The biggest businesses in the Kingdom, valued by market capital are:
5. KINGDOM HOLDING
MCAP $bn: 17.29
Sector: Cyclical Consumer Services
Prince Alwaleed bin Talal’s (pictured) Kingdom Holding posted a one per cent rise in Q3 profit. The company made a net profit of 219.9 million riyals compared to 217.8 million in the year earlier period.
4. ETIHAD ETISALAT (MOBILY)
MCAP $bn: 17.30
Services Etihad Etisalat (Mobily) beat forecasts with an 11.7 per cent rise in third-quarter net profit as revenue from corporate and wholesale customers grew. Mobily made a third-quarter net profit of 1.69 billion riyals, up from 1.51 billion riyals in the prior-year period, beating forecasts of 1.65 billion. Mobily’s revenue for the three months to September 30 was 6.45 billion riyals, up from 6.18 billion in the prior-year period.
3. SAUDI TELECOM CO
MCAP $bn: 21.38
Sector: Telecommunications Services
STC posted a forecast-beating 73 per cent rise in third-quarter profit, attributing the rise to cost savings. The Gulf’s number two telecoms operator by market value made a net profit of 3.39 billion riyals, up from 1.95 billion a year earlier.
2. AL RAJHI BANKING AND INVESTMENT CORP
MCAP $bn: 30.60
Sector: Banking & Investment Services
Saudi’s largest listed bank reported a fall in its third quarter net profit of 8.1 per cent, down to 1.72 billion riyals from 1.87 billion a year earlier. The results missed forecasts of 2.08 billion riyals.
1. SAUDI BASIC INDUSTRIES CORP (SABIC)
MCAP $bn: 74.99
SABIC posted a third quarter net profit rise this year in line with analysts’ forecasts of 6.47 billion riyals, up from 6.31 billion riyals in the year earlier period. The company’s sales for Q3 were up nine per cent at 48.8 billion riyals.
By Neil Churchill, GulfBusiness