Category
🗞
NewsTranscript
00:00The company's results in the first quarter of 2024 were supported by the company's main activities,
00:09especially the business sector and the services sector, the hourly services sector in the individual sector.
00:14The business sector grew by about 18% during this quarter, while the hourly services sector grew by about 60%.
00:23Of course, the business sector is one of the main sectors in the company, and there was a continuous increase in demand
00:31as a result of the economic movement that we have seen and are witnessing.
00:35The business sector grew completely, especially in terms of industry, employment, and negotiations during this period.
00:42This led to an increase in the levels of the number of businesses in this sector,
00:48thus improving the will and improving the results in this sector.
00:52As for the hourly services sector and the individual sectors, one of the main sectors is the company's commitment
00:59to limit the challenges faced by the individual sector due to the legislations
01:05and to expand the number of businesses in this sector significantly, resulting in better wills.
01:11This is when we talk about the main sectors for the company.
01:16Of course, there are two other aspects that led to the improvement of the results,
01:20which are, as you mentioned, the following companies and other sectors that have improved their wills and profits
01:28in the logistics sector and the services sector, in addition to the recent investments they have made,
01:35which have added to the profit we have seen, which is 55% more.
01:40Mr. Musab, how much of this continuous impact on the individual sector
01:44and as a result of the implementation of the price ceiling and services,
01:50is a part of the regression being able to be restored in other sectors?
01:54And what are the sectors that can get used to this effect?
02:00Yes, these legislations were adopted by the ministry at the end of the first quarter of 2023
02:08and the price ceiling continues to affect this sector.
02:12But this is not only affecting the individual sector.
02:16We have the competition in this sector and also the closure of some countries,
02:22such as Indonesia, and this is one of the effects on it.
02:27But today, the company's position in expanding, as we mentioned, in the services sector,
02:33this is one of the things that will reduce the impact of these challenges,
02:37in addition to providing new services.
02:40Today, the company provides medium-sized services and home care,
02:44and there are new services for VIPs and guests in the individual sector,
02:50which will provide support for the profits in this sector in the coming periods.
02:55But the biggest challenge was the presence of workers, which affected the reduction of the existing numbers.
03:02Today, we have positive news that gives us a positive range for the performance of this sector
03:07by opening the use of countries such as Indonesia and the Philippines,
03:11which will affect the average number in the coming periods,
03:15and therefore on the revenues and profits.
03:17Okay, you told me about the investments in partner companies today.
03:21Is there an intention for the expansion process to also include investments in these companies
03:27to increase the growth of their profits and even their revenues,
03:29which may affect the performance of the company in the future?
03:33That's a good question.
03:35These companies are long-term investments.
03:37One of the goals of the company, which was part of the company's strategy years ago,
03:42is to support the company's financial sustainability and main activities
03:47by providing profits or improving the rest of the company's profits.
03:54These companies provide excellent performance.
03:57Today, the return on investment is large.
04:00We have seen a large movement in the level of results in these companies.
04:0426 million during the first quarter, up 140%.
04:08So, it is performing the expected successes of these investments.
04:13These investments have expansion plans at the level of, for example,
04:19recovery funds for the Kingdom Hospital,
04:22or at the level of strategic projects in health systems,
04:27which are providing this return and improving the future of the company.
04:32Other expansions as new investments are based on the growth strategy
04:38adopted by Mahara in 2023.
04:41There will be a gap to realize some of the opportunities that support the company's main activities,
04:48or reduce the gap between the activities that we want to be in as soon as possible
04:58through strategic contracts or strategic agreements with other parties.
05:07We do not find large current investments today,
05:10but the field is open and the company's financial center is strong
05:13in its ability to borrow in the event of any future investment opportunities.
05:19Even dealing with the cost of financing, which may have increased by 1.2%,
05:25how much can we witness your ability to control these costs, Mr. Moussaab?
05:32And is it possible that it will increase with the expansion we are seeing in the company's borrowing?
05:37As I mentioned, the company's financial center is strong.
05:40The loans that were obtained were to finance part of the value of the investments that were made in 2022.
05:48These loans were made or were taken at special bidding prices,
05:54which lasted for 7 to 8 years.
05:57We saw the worst in the matter of rising the price of loans.
06:01We expect that this will be proven or will be less in the coming periods,
06:08but in general, we look at the return on investment including these financial costs
06:16and still positive results through the return on investment.
06:20But the debts that are expected to be paid, how much is it now?
06:24It reaches about 1.3 million.
06:27Yes, this is a loss, an example of a loss of 8% in the past,
06:35and it is a known example.
06:37It was taken according to the age of the city.
06:40We do not see anything different today.
06:44On the contrary, the company's ability in terms of liquidity and acquisition is very distinctive
06:50and is in line with the previous trends in terms of acquisition,
06:56so we still find the specialist acceptable and in line with the previous periods.
07:02I would also like to ask about government contracts.
07:05How much do you have, Mr. Moussaab?
07:07And in terms of business today, since you are talking about some markets,
07:11such as Malaysia, Indonesia and the Philippines,
07:15what is the most central business today in terms of the company and its acquisition?
07:21Of course, it varies from sector to sector in terms of nationalities.
07:26Of course, the Indonesian nationality and the Filipino nationality are the major nationalities
07:33in the individual sectors and hourly services,
07:40while the Indian nationality may be one of the largest in the business sector.
07:46But it varies from sector to sector.
07:48But let's go back to the subject of government projects.
07:52Certainly, as you mentioned, Mr. Moussaab,
07:55the company is moving towards government projects,
08:01strategic government contracts through bonds or through the business sector in the company,
08:07in addition to the petrochemicals sector, which we see is a promising sector and has a lot of opportunities.
08:12Today, the bond, with its strategic contract with the Spending Authority,
08:19is giving positive results in terms of numbers,
08:23and we expect that these numbers, which we have achieved in the number of 1,500 employees,
08:28may double in the coming years.
08:34The company has large strategic projects at the level of ministries,
08:39in line with the previous announcement that the company mentioned with the Ministry of Tourism,
08:44to develop jobs and improve the presence of Saudis in sectors such as tourism,
08:51to provide special training to find job opportunities for these Saudis.
08:58Therefore, there is a promising sector and promising opportunities.
09:01Of course, we are talking about the level of bonds, but also at the level of the business sector,
09:06there are major projects.
09:08I expect that the company will strengthen its presence and market share
09:13in order to obtain a large share of the government's large projects.