Saudi Telecom Firm stc Secures $8.7 Billion Contract with Government Entity
Saudi telecom giant stc signs major agreement to build, operate, and manage telecom infrastructure for 15 years, as part of Vision 2030 initiatives.
Saudi telecom company stc has signed a significant contract worth SR32.64 billion (approximately $8.71 billion) with an undisclosed government entity.
The agreement, disclosed in a filing with the Saudi Stock Exchange, involves the construction, operation, and provision of telecommunications infrastructure services.
The project will span 18 months for preparation and execution, followed by 15 years of operational management.
This contract is part of the ongoing expansion of Saudi Arabia's telecom and information communication technology (ICT) infrastructure sector, which was valued at $3.5 billion in 2023. The sector is expected to grow at a compound annual growth rate of 7.1 percent through 2029, driven by initiatives under Saudi Arabia's Vision 2030 plan aimed at economic diversification and technological innovation.
stc stated that the financial impact of the contract would be positive, with revenue expected to be recognized in its consolidated financial statements after the initial operation, projected for the fourth quarter of 2026 and continuing through the end of the contract.
Following the announcement, stc's shares saw a rise, opening at SR43.20, up by 2.01 percent from the previous close of SR42.35, and closing at SR43.30, marking a 2.24 percent increase.
Ranked among the top 10 most valuable telecom brands globally in the 2024 Brand Finance Report, stc has maintained its position as the most valuable telecom brand in the Middle East for five consecutive years.
The company continues to align its efforts with Saudi Arabia’s goals of digital transformation and economic diversification.
In recent months, stc has also undertaken several major initiatives, including the transfer of ownership of Golden Lattice Investment Co. as part of the sale of a 51 percent stake in Telecommunications Towers Co. to the Public Investment Fund.
Additionally, in November 2024, stc gained foreign investment authorization from the Spanish Council of Ministers, allowing the company to increase its voting rights in Telefonica from 4.97 percent to 9.97 percent.
The growth of Saudi Arabia’s ICT sector is being driven by the expansion of 5G networks and efforts to develop smart cities, alongside a broader push for digital transformation across industries.
Market research indicates that key telecom players are actively upgrading and expanding their networks to meet the increasing demand for advanced telecom and ICT solutions.
The agreement, disclosed in a filing with the Saudi Stock Exchange, involves the construction, operation, and provision of telecommunications infrastructure services.
The project will span 18 months for preparation and execution, followed by 15 years of operational management.
This contract is part of the ongoing expansion of Saudi Arabia's telecom and information communication technology (ICT) infrastructure sector, which was valued at $3.5 billion in 2023. The sector is expected to grow at a compound annual growth rate of 7.1 percent through 2029, driven by initiatives under Saudi Arabia's Vision 2030 plan aimed at economic diversification and technological innovation.
stc stated that the financial impact of the contract would be positive, with revenue expected to be recognized in its consolidated financial statements after the initial operation, projected for the fourth quarter of 2026 and continuing through the end of the contract.
Following the announcement, stc's shares saw a rise, opening at SR43.20, up by 2.01 percent from the previous close of SR42.35, and closing at SR43.30, marking a 2.24 percent increase.
Ranked among the top 10 most valuable telecom brands globally in the 2024 Brand Finance Report, stc has maintained its position as the most valuable telecom brand in the Middle East for five consecutive years.
The company continues to align its efforts with Saudi Arabia’s goals of digital transformation and economic diversification.
In recent months, stc has also undertaken several major initiatives, including the transfer of ownership of Golden Lattice Investment Co. as part of the sale of a 51 percent stake in Telecommunications Towers Co. to the Public Investment Fund.
Additionally, in November 2024, stc gained foreign investment authorization from the Spanish Council of Ministers, allowing the company to increase its voting rights in Telefonica from 4.97 percent to 9.97 percent.
The growth of Saudi Arabia’s ICT sector is being driven by the expansion of 5G networks and efforts to develop smart cities, alongside a broader push for digital transformation across industries.
Market research indicates that key telecom players are actively upgrading and expanding their networks to meet the increasing demand for advanced telecom and ICT solutions.