Revenues of Top 100 Saudi Companies hit SR679bn in 2013

Updated 10 July 2014
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Revenues of Top 100 Saudi Companies hit SR679bn in 2013

Revenues of Top 100 Saudi Companies registered a marginal growth of 0.51 percent to SR679.41 billion by the end of 2013 compared to SR676.96 billion in 2012, according to a financial report.
Revenues of top 10 companies represented 64.4 percent of the 100’s total revenues at SR437.1 billion, the report filed and analyzed by Al-Eqtisadiah daily said.
The petrochemical sector was the biggest contributor to the overall revenues at 45.4 percent at the value of SR308.4 billion, followed by the telecom and IT sector at 11.6 percent (SR78.5 billion), banking and financial services at 11.3 percent (SR76.9 billion), agriculture and food industries at 6.8 percent (SR45.9 billion), energy and utility services at 5.6 percent (SR37.9 billion), construction and building at 4 percent (SR27.2 billion), the retail at 3.6 percent (SR24.2 billion), the report said.
Meanwhile, real estate development, transport and media and publication sectors were the least contributors to the total revenues at 0.9 percent, 0.6 percent and 0.4 percent at values reaching SR5.9 billion, SR3.9 billion and SR2.9 billion, respectively, the report said.
On the other hand, the share of Saudi Basic Industries Corporation (SABIC) to the revenues of top 10 companies was the highest at 43.6 percent valued at SR190.3 billion while its share to the 100’s top stood at 28.1 percent, according to the report.
Share of other companies to the revenues of the top 10 varied as follows: Rabigh Refining and Petrochemical Company (PetroRabigh) at 11.8 percent (SR51.6 billion), Saudi Telecom Company (STC) at 10.4 percent (SR46.6 billion), Saudi Electricity Company (SEC) at 8 percent (SR36.1 billion), Savola Group at 6 percent (SR26.4 billion), Etihad Etisalat Company (Mobily) at 5.8 percent (SR25.4 billion), Tasnee at 4.2 percent (SR18.3 billion), the National Commercial Bank (NCB) at 3.8 percent (SR16.6 billion), Al-Rajhi Bank at 3.3 percent (SR14.6 billion), and Almarai at 2.6 percent (SR11.2 billion), the report said.


Saudi stocks receive landmark emerging markets upgrade from MSCI

Updated 21 min 11 sec ago
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Saudi stocks receive landmark emerging markets upgrade from MSCI

  • Market authorities in Saudi Arabia have introduced a series of reforms in the past 18 months
  • MSCI’s Emerging Market index is tracked by about $2 trillion in active and global funds

LONDON: Saudi Arabian equites are poised to attract up to $40 billion worth of foreign inflows, following a landmark decision by index provider MSCI’s to include the Kingdom’s stocks in its widely tracked Emerging Markets index.

"MSCI will include the MSCI Saudi Arabia Index in the MSCI Emerging Markets Index, representing on a pro forma basis a weight of approximately 2.6% of the index with 32 securities, following a two-step inclusion process," the MSCI said in a statement late on Wednesday night Riyadh time.

“Saudi Arabia’s inclusion in MSCI’s EM Index is a milestone achievement and will likely bring with it significant levels of foreign investment,” Salah Shamma, head Of investment for MENA at Franklin Templeton Emerging Markets Equity, told Arab News. 

“It is a recognition of the progress Saudi Arabia has made in implementing its ambitious capital markets transformation agenda. The halo effect of such a move will be felt across the stock exchanges of the entire Gulf Cooperation Council (GCC).”

Market authorities in Saudi Arabia have introduced a series of reforms in the past 18 months to bring local capital markets more in line with international norms, including lower restrictions on international investors, and the introduction of short-selling and T+2 settlement cycles.

Such reforms prompted index provider FTSE Russell to upgrade the Kingdom to emerging market status in March, opening the country’s stocks up to billions worth of passive and active inflows from foreign investors.

MSCI’s Emerging Market index is tracked by about $2 trillion in active and global funds. The inclusion of Saudi stocks in the index, alongside FTSE Russell’s upgrade, is forecast to attract as much as $45 billion of foreign inflows from passive and active investors, according to estimates from Egyptian investment bank EFG Hermes. 

The upgrade announcement was widely expected by the region’s investment community, following a similar emerging markets upgrade announcement by fellow index provider FTSE Russell in March. 

“MSCI index inclusion will be a historic milestone for the Saudi market as it will allow for sticky institutional money to make an entry in 2019 which will help deepen the market,” said John Sfakianakis, director of economic research at the Gulf Research Center in Riyadh.