ICC Saudi Arabia to support Saudi Trade Finance Summit

Updated 04 November 2015
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ICC Saudi Arabia to support Saudi Trade Finance Summit

Dubai-based QnA International is set to host the annual Saudi Trade Finance Summit in partnership with the Saudi arm of International Chamber of Commerce (ICC).
The event will be held from Nov. 10-11 at the Al Faisaliah Hotel in Riyadh.
The two-day summit will feature panels on risk assessments, finance strategy, supply chain finance, and Islamic finance among other topics.
The event, now in its third edition, is an exclusive by-invitation only gathering of the most influential senior finance professionals and decision-makers in Saudi Arabia — the largest economy in the GCC pursuing economic diversification goals.
An important area for the development and diversification of domestic economies is international trade based on goods and services. This, however, requires financing provided by trade finance.
“Although international trade has slowed down in the recent years, 63.3 percent of respondents to the 2015 ICC Global Survey on Trade Finance reported an increase in trade finance activity,” Yassin Suroor, chairman of ICC Saudi Arabia, said.
The increases that Suroor mentioned are partially due to organizations seeking increased financial protection for potential risks and defaults in the current turbulent world of trade emphasizing the importance of trade finance products.
“Instead of focusing on the negatives currently in global trade, organizations involved in trade finance should consider developing novel financial products suited to the current global market” commented Sidh N.C., director, QnA International.
“In Saudi Arabia, “the availability of trade finance is paramount for newer organizations borne from the government’s economic diversification plans, which are primarily SMEs,” he added.
However, a worrying result from the ICC survey suggests SMEs accounted for 53 percent of all rejected trade finance transactions. “This could happen if the correct compliance procedures, protocols and rules are not followed properly and lead to the rejection of the trade finance transaction,” explained Suroor.


Mobily quarterly loss down by 49%

Updated 26 April 2018
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Mobily quarterly loss down by 49%

Saudi telecom provider Mobily decreased its quarterly losses in Q1 2018 by 49 percent to SR93 million ($24.84 million) compared with SR182 million in Q4 2017. This was mainly due to a growth of revenues driven by a better mix of products mainly from data, the increase of efficiency in managing operational expenses, the impact of implementing IFRS 9 and 15, and the reversal of certain provisions that are no longer required, according to the company.

Revenues improved for the second consecutive quarter reaching SR2,833 million in Q1 2018 compared with SR2,827 million in Q4 2017, a slight increase of 0.2 percent, despite the following:

l The impact on sales at the beginning of the year due to the implementation of the value-added tax (VAT). 

l The reduction in interconnection rates by 45 percent.

l The seasonality of handset sales, and its increase in Q4 2017.

l The seasonal decrease related to the number of days in Q1. 

Without the decrease of the interconnection rates, revenues would have grown by 2 percent.

Mobily’s gross profit increased in Q1 2018 by 6.6 percent to SR1,663 million compared with SR1,560 million in Q4 2017. This increase is mainly due to the reduction in interconnection rates during Q1 2018 compared with those of Q4 2017 and the reduction in equipment costs in Q1 2018 compared with Q4 2017.

Mobily managed to grow its revenues for the second consecutive quarter. Q1 2018 revenues slightly decreased by one percent (SR33 million) to SR2,833 million compared with SR2,865 million in Q1 2017. Mobily achieved a stable level in revenues despite the general economic and regulatory changes, including the impact on sales in the beginning of the year due to the implementation of VAT, and the reduction in interconnection rates by 45 percent.

Without the decrease of the interconnection rates, the revenues would have grown by one percent year over year.

The gross profit stabilized at SR1,663 million in Q1 2018 compared to SR1,665 million in Q1 2017 with a slight decrease by 0.12 percent, despite the slight decrease in revenues.