Saudi Telecom Sector Beats Records in H1 2026 – What’s Behind the Numbers?
Saudi Arabia’s listed telecom operators booked record first-half revenue of SAR55.53 billion ($14.8 billion) in 2026, up 3.59% year on year. However, profit growth told a more complicated story, with one major operator’s earnings actually falling even as the sector as a whole moved forward.
The big picture: Stronger consumer and enterprise demand, growing carrier and wholesale business, an expanding subscriber base and a healthier revenue mix all pushed the sector’s top line higher. Meanwhile, combined net profit across the three major operators rose 2.33% to SAR9.5 billion, up from SAR9.29 billion a year earlier.
Why it matters: The telecommunications sector powers the Kingdom’s digital transformation under Saudi Vision 2030. Consequently, strong consumer and enterprise demand bolstered market expansion.
By the numbers:
- stc: Generated SAR40.11 billion ($10.7 billion), or 72.2% of sector revenue, a 3.75% increase. Yet net profit slipped 2.05% to SAR7.32 billion.
- Mobily: Revenue climbed 5.35% to SAR10.12 billion ($2.7 billion), while net profit jumped 11.5% to SAR1.78 billion.
- Zain KSA: Revenue dipped 0.7% to SAR5.3 billion ($1.4 billion), but net profit soared 84.1% to SAR405 million.
Quarterly figures followed a similar pattern: combined Q2 revenue reached SAR28 billion, though net profit slipped 1.1% to SAR4.73 billion as a 5.2% drop in stc’s quarterly profit outweighed gains at Mobily (up 8.55%) and Zain KSA (up 60.6%).
Strategic Infrastructure Investments
What they are saying: Dr. Suleiman Al-Humaid Al-Khalidi, a financial and economic expert and member of the Saudi Economic Association, called the results reassuring. He told Asharq Al-Awsat the numbers “confirm that the sector remains one of the Saudi stock market’s most stable and profitable.”
Still, Al-Khalidi pointed to a clear divergence in performance. Mobily “improved operational efficiency, diversified revenue sources and expanded digital services,” he said, while Zain KSA’s 84% profit jump reflects “the success of its restructuring efforts, tighter cost controls and improved profit margins.”
As for stc, Al-Khalidi downplayed the dip. The company still earned more than SAR7.3 billion and holds over 72% of sector revenue, he noted, attributing the decline mainly to heavier investment in 5G networks, data centers and artificial intelligence.
He expects the sector to enter a more mature phase, supported by Saudi Vision 2030’s digital transformation goals, with steady growth ahead as current investments start to pay off.
Beyond Traditional Telecom
Mohamed Hamdy Omar, Founder and CEO of G.WORLD, likewise sees the results as proof of the sector’s resilience, though he urges analysts to separate accounting growth from underlying operating performance.
Omar forecasts moderate, positive growth in the second half of 2026 as competition shifts away from traditional voice and data services toward integrated digital offerings. Cloud computing, data centers, cybersecurity, the Internet of Things, managed enterprise and government services, and digital financial platforms will increasingly drive growth, he said, outpacing traditional telecom’s more mature market.
Omar also expects artificial intelligence to reshape the sector in two stages. First, AI will sharpen operational efficiency through network management, predictive maintenance, customer service and fraud prevention. Next, it will become a direct revenue source through dedicated AI infrastructure, cloud services and data analytics for corporate and government clients.
The bottom line: Ultimately, each operator’s second-half performance will hinge on how well it converts digital investment into recurring, high-margin revenue. Going forward, Omar argues, subscriber numbers and pricing won’t decide the next round of competition, the fastest transformation from telecom provider to full digital technology company will.
