Tadawul Q3 earnings indicate strong growth in non-oil sectors

Emphasizing the Kingdom’s drive for economic diversification, banking, transportation, telecommunication services, and healthcare and equipment services all reported increased profits over the three months to the end of September. File
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Updated 19 November 2023
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Tadawul Q3 earnings indicate strong growth in non-oil sectors

  • Kingdom’s banking industry registered net income totaling SR17.65 billion

RIYADH: Tadawul All Share Index earnings data for the third quarter of 2023 revealed profit growth in non-oil sectors when compared to the corresponding period last year, according to data compiled by Arab News.

Emphasizing the Kingdom’s drive for economic diversification, banking, transportation, telecommunication services, and healthcare and equipment services all reported increased profits over the three months to the end of September.

The primary stock market index of Saudi Exchange employs a sophisticated methodology to assign weights to each sector within the index.

Even though the energy sector claims the highest market capitalization, primarily influenced by Aramco with a substantial SR8.47 trillion ($2.26 trillion) market cap, it does not command the highest weight. This is due to the capped indices calculation methodology, with the banks sector surpassing it in terms of weight.

This methodology is used to prevent any single security from having a dominating influence on an index, and it is part of the Financial Sector Development Program’s key initiative under the Kingdom’s Vision 2030 to enhance the exchange’s product offering.

Looking at the net income by sector for the third quarter, as per data from Bloomberg and analyzed by Arab News, the energy sector emerged as the leader with SR122.82 billion. 

HIGHLIGHTS

  • Looking at the net income by sector for the third quarter the energy sector emerged as the leader with SR122.82 billion. 
  • The telecommunication services sector disclosed the third-highest net income across all sectors, reaching SR5.75 billion.
  • The transportation sector experienced the highest growth rate, surging by 169 percent to SR223 million in net income.
  • The healthcare equipment and services sector emerged as a promising industry, registering a positive growth of 38 percent.
  • The Kingdom is committed to expanding digital health usage, involving a $1.5 billion investment in health information technology.

However, this figure indicates a 21 percent decline compared to the same quarter of the previous year, primarily attributed to diminished oil prices and a reduction in sales volumes.

Aramco, being the largest entity in this sector, reported a net profit of SR123.53 billion during the same period, indicating a 21 percent decrease from the previous year.

The decline in growth can be attributed to the Kingdom’s commitment to reduce oil output by 500,000 barrels per day, initially announced in April and extended until December 2024. 

Additionally, an extra cut of 1 million bpd, implemented in July and set to persist until December 2023, further contributed to this decrease.

The banking industry registered the second-highest net income among the indexed sectors, totaling SR17.65 billion. This represents an 8.3 percent growth compared to the corresponding period last year.

Considering the inclusion of sukuk and treasury bonds costs, Al Rajhi Bank recorded the highest net income among all banks at SR3.9 billion, but faced an 8 percent decline in this period.

Conversely, Alinma Bank showcased the highest growth, achieving a net income of SR1.33 billion, indicating a 34 percent increase from the third quarter of 2022.

The telecommunication services sector disclosed the third-highest net income across all sectors, reaching SR5.75 billion, reflecting a 43 percent growth in this period. This notable increase can be largely attributed to the performance of Saudi Telecom Co., which experienced a 38 percent growth, culminating in a total net income of SR4.89 billion in the third quarter of this year.

Zain KSA, the Mobile Telecommunications Company Saudi Arabia, experienced growth of 234 percent, reaching SR285 million during this period. This substantial increase is attributed primarily to the expansion in business-to-business activities, the uptake of 5G services, digital packages, and wholesale services.

Additionally, the growth of Tamam, a Shariah-compliant micro-lending service provider based in Saudi Arabia and a subsidiary of Zain, played a significant role in this positive financial performance.

The “Vision 2030” initiative recognizes the pivotal role of the telecom industry in enhancing living standards and driving economic growth. It aims to promote competition, elevate service standards, and increase the sector’s contribution to gross domestic product.

The robust performance of this sector is attributed to increasing subscriptions, the expansion of digital banking in the Kingdom, and diversification of services.

Significantly, the telecommunications sector witnessed strong growth during the Hajj season, capitalizing on a notable surge in its customer base.

During this period, the transportation sector experienced the highest growth rate, surging by 169 percent to SR223 million in net income.

United International Transportations Co. led this sector with the highest share, reporting a net income of SR71 million, marking a 12 percent increase from the same quarter last year.

The notable growth in this sector is primarily attributed to the strong performances of Saudi Public Transport and Saudi Ground Services Companies, which reported net incomes of SR20.2 million and SR59.9 million, respectively.

According to the state media, the Ministry of Transport and Logistic Services is pivotal to Saudi Vision 2030 through its National Transport and Logistics Strategy launched in mid-2021.

Aimed at enhancing global logistics standing and fostering economic diversification, the strategy focuses on initiatives like global logistical platforms, improved port infrastructure, and increased cross-border trade. 

The goal is to elevate the transport sector’s GDP contribution from 6 percent to 10 percent and secure top global rankings in logistical performance, cross-border trade, and road network connectivity.

The healthcare equipment and services sector emerged as a promising industry, registering a positive growth of 38 percent during this period and accumulating a total net income of approximately SR966 million.

Dr. Sulaiman Al Habib Medical Services Group claimed the highest share in the healthcare equipment and services sector, reporting a net income of SR544.76 million, reflecting a 30 percent growth during this timeframe.

According to the International Trade Administration, Saudi Arabia aims to invest over $65 billion in healthcare infrastructure as part of Vision 2030, with a focus on increasing the private sector’s contribution from 40 percent to 65 percent.

The plan includes the privatization of 290 hospitals and 2,300 primary health centers. To enhance accessibility, the Saudi Ministry of Health plans to establish “health clusters” serving around 1 million people each.

Additionally, the Kingdom is committed to expanding digital health usage, involving a $1.5 billion investment in health information technology and increased adoption of telemedicine.


Saudi youth turn to AI for art and culture

Updated 11 sec ago
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Saudi youth turn to AI for art and culture

  • Creativity, heritage and technology converge in a new generation of artists

RIYADH: As Saudi Arabia’s Vision 2030 places creativity, culture and technological innovation at the core of national development, the impact of these priorities is becoming increasingly visible across a wide range of disciplines and practices.

Through the use of artificial intelligence, young Saudis are integrating technology into their creative work both as a practical tool and as a medium in its own right. In doing so, they are expanding their capabilities, exploring personal and collective identity, and finding new ways to preserve and reinterpret cultural heritage.

“AI gives young Saudis a new way to interact with their own cultural inheritance,” said Dmitry Zaytsev, founder of Dandelion Civilization, a platform designed to help individuals shape unique professional paths.

“Traditional design elements such as calligraphy or geometric motifs were once difficult to modify. Experimentation required resources and formal approval. AI removes that barrier and makes exploration immediate. A creator can test many versions of a pattern and see which ones still feel authentic to them,” he told Arab News.

According to Zaytsev, this emerging form of expression does not signal a rejection of tradition, but rather a deeper engagement with it. “The young creator discovers what can change and what must remain constant. AI becomes a sketchbook that allows culture to evolve through curiosity rather than fear. When creators correct a model or push it toward local rhythm, they strengthen rather than dilute cultural identity,” he explained.

Sarah AlBaiz, an art adviser, researcher and artist, uses code to blend visual art with concepts drawn from culture and philosophy. While her early practice focused primarily on painting, her trajectory shifted during the 2020 AI Artathon, a pioneering international event highlighting collaboration between humans and machines in artmaking, where she discovered how to merge her engineering background with her creative work.

DID YOU KNOW?

• Saudi youth are using AI as a creative tool to reinterpret heritage, from calligraphy to folklore.

• AI is helping artists experiment faster without the traditional barriers of resources or formal approval.

• The Kingdom is backing creative AI nationally, with programs like SAMAI aiming to empower 1 million Saudis for an AI-driven future.

Operating within the field of computational creativity, where technology actively participates in the artistic process, AlBaiz explores themes of finance and faith. “Because they’re two sides of who I am,” she said. “When you talk about values, for example, that is both a term used in finance and trade from an objective perspective, but also moral and spiritual value.”

“When you understand prompting in AI, you can get it to produce almost anything. But it’s also informed by the training data it has,” she said.

Sarah Albaiz's "Diriyah II (2020)" melds a traditional Saudi landmark with the avant-garde. This generative artwork rejuvenates the historic Alsalwa Palace in Diriyah. By infusing Munira AlTheeb's artistry through GAN style transfer, the piece stands as a testament to the evolving narrative of Saudi heritage. (Supplied)ed2edde

Rather than relying on a single platform, AlBaiz experiments with multiple AI models to test their limitations and audience reception. “I work a lot with language as well, so large language models are right up my street when it comes to computational creativity.”ee

Her work has gained international recognition. At the 2022 Islamic Arts Biennale in Jeddah, she co-created an artwork under the banner of Super Artistic AI that generated Al-Qatt Al-Asiri motifs from southern Saudi Arabia. The piece received an Audience Award.

Beyond her artistic practice, AlBaiz is developing an intelligent art advisory system aimed at helping users navigate the Saudi art landscape. Designed as an initial point of contact, the system would guide users through potential pathways before they engage with a human adviser.

Inverting established gender norms, Sarah Albaiz's digital collage reimagines masculinity. Set against a generative backdrop, its core message "real men cry" challenges familial WhatsApp discourses. (Supplied)

“It’s about understanding what role AI plays in the pursuit of what you want,” she said. “When I decided to focus on Qantara and building the advisory, I recognized that many of the systems required would need to be intelligent systems that offload a lot of work from me and the team.”

“When AI is an enabler rather than the end result, it becomes less intimidating because it feels risk-free for the end user,” she added.

Zaytsev echoed this idea, describing AI as a kind of rehearsal space. “Young people practice conversations, explore sensitive topics and organize their thoughts without social risk. This builds emotional clarity and confidence,” he said.

While generative tools such as large language models attract much of the attention, AI’s creative applications extend far beyond text and image generation.

Fairooz Alawami, trained as both an architect and engineer, uses AI to create self-expressive visual works inspired by dance.

Fairooz AlAwami's work

“My practice is focused on contextualizing movement,” she said. “Because of my architectural training, I work with 3D modeling software called Rhino, which includes a visual coding language. Within that environment, you can also write code in Python, JavaScript or C#.”

Alawami employs OpenPose to analyze videos of her dancing by mapping points across her body. She then applies another computer vision model, MIDAS, which converts images or videos into depth frames. “If OpenPose gives me a skeleton, MIDAS gives me depth,” she explained. The resulting data is fed into 3D modeling software, where it is refined and manipulated into finished artworks.

She began dancing at a young age. “I didn’t find it, it found me,” she said. Movement later became the foundation of her artistic practice, leading to her first major project around three years ago while completing her master’s degree using the Grasshopper plugin. At the time, the workflow was slow and fragmented, but the arrival of ChatGPT helped streamline the process by making it easier to write and learn code.

“I think my love for dance and my love for art and design came together in a way that felt uniquely me,” she said. “Once I found that space, I just ran with it. It is my singular voice.”

Her work also draws heavily on cultural and musical heritage. One recent project was inspired by folklore referenced in the iconic song “Al Leila wa Leila” by Umm Kulthum. Alawami extracted musical stems from the track and mapped them to characters within the narrative. “The vocals were Shahrazad, the storyteller, and each stem represented a different narrative element,” she said. Earlier works were influenced by Islamic architecture and the geometric patterns found throughout Saudi Arabia and the wider Arab world.

Opinion

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“There are some incredible artists using generative AI to do very impressive things, and I don’t think I fall into that camp,” she said. “For me, AI is more like a skills-gap tool that helps me reach where I want to go.

“As humans, whether we realize it or not, the act of creating feeds us in some way. Lowering the barrier to entry makes creativity less intimidating.”

Today, Saudi Arabia’s creative sector is supported by expanding national infrastructure. Initiatives such as the Cultural Scholarship Program place Saudi students in more than 60 universities worldwide, spanning disciplines from archaeology and literature to design, filmmaking and culinary arts. In parallel, the Kingdom launched the SAMAI initiative last year, aiming to equip 1 million Saudis with the skills needed to engage confidently in an AI-driven world.

Within Vision 2030, culture, tourism, digitalization and AI are treated as strategic sectors rather than peripheral concerns. As Saudi Arabia develops its creative economy as a form of soft power, its youth are becoming increasingly digitally fluent. AI tools are now embedded within creative workflows, enabling a new generation to explore heritage, remix traditional aesthetics and develop narratives that resonate on a global stage.