The Arab World's largest economy hosts a high-value and competitive telecommunication sector

It has also seen the emergence of successful companies with equally robust financial and operational strengths. As reported by the Saudi Arabian Monetary Agency, the Saudi services sector has shared the fortunes; it developed tremendously in recent years to reach a nominal value of US$ 42.08 billion, constituting 12.1% of the 2006 GDP with the transportation, logistics and communication sub sector generating US$ 11.03 billion.

'The Saudi Telecommunication sector was one of the early sectors to enjoy the benefits of open market competition, the advent of an independent regulator and the active participation of the private sector' noted Arab Advisors Analyst Gina Hamameh in the report. The Saudi Telecommunications Company (STC), the sector's one-stop-shop incumbent operator and the Saudi Stock Exchange's (Tadawul) second largest company in terms of market capitalization (as at June-end 2007), had 30% of its shares floated by the government in 2002. The company is currently 70% government-owned. 'Thanks to a local market of almost 24 million people with a relatively high GDP per capita, STC is considered the largest single operator in the Middle East and North Africa in terms of number of subscribers and revenue' added Ms. Hamameh.

A new sector report, 'Kingdom of Saudi Arabia Telecommunications Sector' was released by the Arab Advisors Group's Financial Markets Strategic Research Service on August 30, 2007.

The 65-page report provides a comprehensive background on the Saudi Telecommunication Sector, the telecommunication companies within and the companies Key Performance Indicators. The report also provided detailed financial analysis of the main fixed and cellular players in the country.

Please contact the Arab Advisors Group to get a copy of the report's Table of Contents.

The Saudi telecommunications sector has proceeded from an entirely government owned/regulated single-operator market into a competitive, multi-operator market. The sector currently boasts three operational cellular operators. Kuwait's MTC was recently awarded the third mobile license in the Kingdom, bearing the highest cellular license price tag in the region to date. The wheels of fixed line service liberalization have also been set in motion with the awarding of three separate licenses earlier this year.

The Arab Advisors Group's team of analysts in the region has produced a number of equity reports on companies and sectors within the Amman Stock Exchange (ASE) and the Doha Securities Market (DSM).