Profits of 22 Saudi Companies Reached $10.7 Billion in 2017

Profits of 22 Saudi Companies Reached $10.7 Billion in 2017

Saturday, 3 February, 2018 - 11:45
Saudi Arabia stock market tadawul (Getty Images)
Riyadh - Shujaa al-Baqmi
22 Saudi companies listed on the local market announced their results for 2017 showing a growth rate of 13.8 percent in terms of rates profits earned, despite the sharp fluctuations in oil prices over the past three years,.

Profits of 14 companies listed on the local market rose and profits of 8 other companies declined, while the announcement of corporate financial results is expected to increase in the next few weeks.

In this regard, the Capital Market Authority (CMA) decided to exempt listed companies from disclosing the preliminary financial statements for the fourth quarter of fiscal year 2017. The resolution gives listed companies the option whether to disclose the financial statements for the fourth quarter of fiscal year 2017, but it is not mandatory.

CMA required companies to disclose their audited annual financial statements within a period of no more than three months from the end of the annual financial period; until the end of March 2018.

In a related context, the combined profits of 22 companies that announced the 2017 results, reached about $10.75 billion, a 13.8 per cent increase from these companies' profits in 2016.

The Saudi stock market ended last week's trading with a gain of 1.8 per cent, or 134 points, to close at 7656 points compared to the previous week's close of 7522 points.

The stock ended January's trading with 5.9 per cent gain, or 424 points.

The cash flow in Saudi stock market during the last week increased significantly, with a total value of about $5.82 billion compared to $3.9 billion during the previous week, a 48.7 per cent growth rate.

The financial sector development program, announced by Saudi Arabia as part of Vision 2030, is an important step towards developing the local capital market and placing it among the top 10 financial markets in the world.

This comes at a time the Kingdom is working dynamically on many of the economic reforms that contributed to spare the economy negative effects that would have been due to the declines in oil prices.

Saudi Arabia has made unprecedented progress in the indicators of the ease of doing international business in 2018 following the implementation of many reforms and measures that have contributed to improving the business and investment environment and have enhanced investor confidence.

A recent report by the World Bank Group ranked the Kingdom among the top 20 reformers in the world and second among the high-income and G-20 countries in implementing reforms to improve the business climate.

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