Saudi Telecom Company (STC) says a target to boost foreign operations to half of its total business is still realistic, despite the operator's failed bid to enter the Syrian market.
The company last year reported revenue of 56 billion Saudi riyals (Dh54.8bn), with about 32 per cent of that coming from outside Saudi Arabia.
It had aimed to expand the overseas contribution to 50 per cent by the end of next year but has faced difficulty because of scant acquisition targets and few telecommunications licences being offered.
Despite this, the 50 per cent target is still achievable, said Ghassan Hasbani, the chief executive of international operations at STC.
"We're not shying away from that. It depends on the opportunities available," said Mr Hasbani.
"By the end of 2013, there is no reason why STC should not be able to diversify its revenue." Mr Hasbani stressed that the 50 per cent target was a "guidance" rather than an absolute aim.
STC is Saudi Arabia's largest telecoms company, and has 160 million customersacross the Middle East, Asia and Africa.
Early last year, STC raised its stake in the Indonesia operator Axis to 80.1 per cent from 51 per cent. Its other foreign holdings include a stake in Oger Telecom, which owns part of Turk Telekom.
STC last month said it stopped actively pursuing a bid for a mobile operating licence in Syria.
An auction of the country's third mobile licence has been suspended because of the anti-government protests in that country.
"We just closed the file on that process," said Mr Hasbani.
He said that not winning the Syria licence did not harm the company's targets for international expansion.
"All greenfield situations take longer to achieve significant revenues.
They take a bit of time to reach critical mass," he said.
STC is open to acquisitions to help to boost its foreign operations to 50 per cent of its total business, Mr Hasbani added.
"A target like this would require inorganic growth. And inorganic growth is subject to the availability of the right opportunities," Mr Hasbani said.
"Currently there is no specific market that we are looking at. Most of the markets in the Middle East have potential for growth. The question is at what price, and what is the opportunity." The Middle East's telecoms industry was tipped for consolidation last year, but several high-profile deals fell through.
These include Etisalat's US$12 billion (Dh44bn) bid for a controlling stake in the Kuwaiti operator Zain, and a separate sale of Zain's stake in a unit in Saudi Arabia.
Mr Hasbani said he was hopeful that there would be a pickup in mergers and acquisitions in the Middle Eastern telecoms industry.
"We will probably see some new acquisitions and licences coming out as the appetite of the market starts to increase," he said.
Gulf telecoms companies have come under increasing pressure to maintain revenues, because of high infrastructure costs, greater competition and lower revenues from traditional voice calls.
Mr Hasbani said there was now "a reversal of the stagnation trend" in telecoms companies' revenuesbecause of the greater popularity of internet services.
Last week, it emerged that STC's chief executive, Saud Al Daweesh, had resigned.
Mr Hasbani declined to comment on the reason for his departure or his likely successor.
bflanagan@thenational.ae
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Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Tentative schedule of 2017/18 Ashes series
1st Test November 23-27, The Gabba, Brisbane
2nd Test December 2-6, Adelaide Oval, Adelaide
3rd Test Dcember 14-18, Waca, Perth
4th Test December 26-30, Melbourne Cricket Ground, Melbourne
5th Test January 4-8, Sydney Cricket Ground, Sydney
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