Saudi Arabian Market Community

KEY TAKEAWAYS Dividend Yield as a Core Attraction : Saudi Aramco’s 7% dividend yield makes it a compelling income-generating asset, functioning like a “convertible bond” with steady payouts and long-term growth potential. Premium Valuation Justified : Despite a PE ratio of 16 , higher than the sector average of 10, Aramco’s scale, profitability, and strategic importance justify the premium, with potential for modest upside to a PE of 20 in an optimistic scenario.

In the next 5 years , STC (Saudi Telecom Company) is likely to evolve into a leading regional digital powerhouse with a strong presence in telecommunications, technology, and digital services. Here’s why: 1.

Key Takeaways Strategic alliances and deployment of unconventional rigs are expected to significantly drive international and revenue growth for Arabian Drilling. Strong cash flow and market leadership in gas drilling position the company well for future earnings growth and stability.

Key Takeaways Focus on corporate lending and digital transformation is expected to drive revenue growth and improve operational efficiency. Diversification through investment and fee income aims to enhance earnings and manage financial risks effectively.

Key Takeaways Strategic investments in technology and digital transformation will likely enhance customer engagement and operational efficiency, boosting future revenue and margins. Strong loan growth and a focus on noninterest-bearing deposits are expected to drive revenue growth, with disciplined risk management maintaining net income stability.

Key Takeaways Almarai's strategic investments in poultry production and Long Life Dairy market share may drive long-term revenue growth, despite temporary declines. Stabilized commodity costs and geographic expansion, especially in Egypt and Qatar, enhance margins and earnings potential, supported by significant capital investments.

Key Takeaways Alinma Bank's digital and SME growth initiatives aim to enhance customer engagement, improve net interest margins, and boost revenue and profitability. Focus on expanding treasury services and CASA deposits is set to increase non-interest income, lower funding costs, and improve operational efficiency.

Key Takeaways Strategic focus on profitable segments and customer-centric improvements is expected to drive revenue growth and increase net margins. Investments in digitalization and funding mix optimization aim to enhance operational efficiency and improve earnings.

Key Takeaways Significant expansion efforts and strategic acquisitions are expected to boost revenue, increase production capacity, and enhance profitability through greater control and consolidation. Strategic international investments and technological advancements aim to enhance operational efficiency, supporting growth and maintaining a competitive edge globally.