Zain KSA’s net profit surges 84% to $108m in H1

Vijay Valecha, Tue, July 28, 2026 Khaleej Times

In a Tadawul statement, the company attributed the rise to a 3 percent increase in gross profit, which reached SR3.31 billion during the first six months of this year.

According to IMarc Group, Saudi Arabia’s telecom market reached $17.4 billion in 2025, and is projected to grow to $23.1 billion by 2034, registering a compound annual growth rate of 3.13 percent from 2026.

The sector’s steady expansion is being driven by accelerating digital transformation, the widespread rollout of 5G networks, and sustained government efforts to strengthen telecom infrastructure.

According to the Tadawul statement, Zain KSA’s net profit for the second quarter stood at SR204 million, representing an increase of 60.62 percent compared to the same period in 2025.

Compared to the first quarter, the company’s net profit also witnessed an increase of 1.49 percent.

Zain KSA’s total revenue for the second quarter stood at SR2.65 billion, marking a marginal decline of 0.11 percent compared to the same period in 2025 and a 0.18 percent drop from the previous three months.

Commenting on the financial results, Vijay Valecha, chief investment officer at Century Financial, told Arab News that one of the drivers of profit stood out as an improved revenue mix, primarily from higher-margin services like the consumer 5G segment.

He added: “Telecom companies invest heavily in setting up signal towers, fiber optics and overall network equipment, and once these assets become fully depreciated, the expense recorded in the accounting books declines even though the assets continue to generate revenue. This directly leads to better profit margins without requiring additional sales.”

Earlier this month, Zain KSA announced the commercial launch of Advanced 5th Generation technology for individual customers, becoming the first company in the Kingdom to offer this service.

The launch came as an extension of its leadership in developing digital infrastructure, following its earlier success in launching the 5G Standalone network in Saudi Arabia.

Commenting on the growth of the telecom sector in the Kingdom, Abraham said: “Saudi Arabia has already built a very large digital appetite. The next question is who captures the value from it. Consumers are using more data, businesses are moving more workloads to the cloud, and AI is creating a new demand for computing and connectivity.”

Valecha explained that the Kingdom’s telecom sector is supported by rapid digital transformation and rising demand for fast and reliable Internet and communication services.

“In Riyadh alone, 5G coverage exceeds 95 percent, making the capital city one of the leading global cities in terms of 5G accessibility. This widespread availability of high-speed Internet is expected to catalyze further growth in the digital economy, particularly in sectors like e-commerce, telecommunication, and digital services,” said Valecha.

Arab News