Page 56 - SAMENA Trends - January 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Saudi Telecom Sector on Growth Track

The telecom sector in Saudi Arabia by Al Rajhi Capital, a leading financial dividends in 2019/2020 if it does not
witnessed a healthy performance in 2019 services provider in the kingdom. Going receive payment for receivables. “While
so far, a report said, noting that leading into the fourth quarter (Q4) of 2019 and Zain is aggressive on 5G, we believe Mobily
telecom companies have registered 2020, there are reasons to be optimistic is likely to focus on debt repayments. We
increase in revenue year-to-date (YTD). as there is now stability in number of present the key trends in the space. Our
Saudi Telecommunications Company expats, higher number of business/tourist target price for stc Group is SR91 ($24.2)/
(stc) recorded an increase of 6 per cent visitors expected, increased business share based on equal mix of DCF and 7.5x
year-on-year (y-o-y) while the revenues activities locally, further growth expected EV/EBITDA multiple. For Mobily and Zain
of Mobily was up 14 per cent y-o-y and in business segment and increase in based on valuation multiple of 6x and 6.3x
Zain KSA up 12 per cent y-o-y, mainly prices. On the other hand, investment respectively, we arrive at target prices of
led by low base, improved ICT/business in 5G in 2020 could mean higher costs SR24/share and SR13/share respectively,”
segment and improvement in ARPU, & capex, the report said, adding that this Al Rajhi Capital said in the report.
said the Saudi Telecom Report released implies stc Group is unlikely to pay special

Middle Eastern Cybersecurity Market Set to Grow in 2020

With the Middle East cybersecurity market expected to grow at according to Gartner. As cyber threats evolve and the demand
a compound annual growth rate of 22.5 per cent during 2018- for operational technology cybersecurity grows, the role of the
24, Honeywell’s cybersecurity professionals shared insights and security professional is often changing. Operational technology
expected changes resulting from more open, connected and and IT functions have been increasingly working together to
smart building systems. Here are key 2020 predictions from the prepare for and respond to cyber-attacks, but in 2020 the industry
company: will likely see more individual professionals with both operational
Buildings will likely see an increase in cyber-related threats as they technology and IT capabilities. These employees typically start
become more connected, putting data and reputation at potentially their career in one function, but grow their skillset overtime
greater risk. According to Gartner, buildings will account for 81 as they gain more overarching security experience. A global
per cent of all connected things in 2020. Still, connected buildings standard for cybersecurity is expected to become a top priority
often remain a less-guarded entry point and cybersecurity has across industries. This year will likely bring a greater focus to
oftentimes not been a primary focus when managing operational standardization for building cybersecurity, and we expect to see
technology. Cybersecurity for operational technology is expected at least one framework emerge as a leading guide for securing a
to become a key safety and security metric for many businesses building’s OT system.
in 2020 as digitalisation and the interconnectivity of systems
potentially opens up new routes of access for cyberattacks. As
buildings become smarter, they generally produce more and
more connected data, and therefore oftentimes attract more
potential threats. In fact, a CEB study found that nearly 20 per
cent of organisations with IoT networks have experienced at
least one IoT-related attack already. As businesses experience
more attacks and the resulting damage caused, many will likely
develop new and more robust strategies to keep pace. Honeywell
expects to see more preventative measures in the coming year,
such as training focused on addressing potential cyber threats
in operational technology and on conducting cybersecurity
assessments to identify gaps. Demand is expected to increase
for a new type of security professional as operational technology
and IT responsibilities often overlap. By 2021, IoT security
service spending will more than double to nearly $2.1 billion,

56 JANUARY 2020