Saudi telecom company stc announced that it has signed a significant contract with a government entity valued at SAR32.64 billion ($8.7 billion). This contract aims to build, operate, and provide essential telecommunications infrastructure services.
Contract details and timeline
In a statement to Tadawul, the telecom operator clarified that the contract spans a term of 18 months dedicated to preparation and execution, followed by a 15 years for project operation.
Read more: stc Group among world’s top 10 telecom brands and strongest in the Middle East & Africa
Financial impact of the contract
The financial impact of this agreement are expected to be favorable. Revenue will be reflected in stc’s consolidated financial statements once the project begins its initial operations, which is projected for the fourth quarter of 2026, lasting until the conclusion of the contract period, as stated.
The company confirmed that no related parties are involved in this deal, ensuring a straightforward transaction.
stc Group: Top 10 global telecom brand, strongest in ME & Africa
Earlier in January, stc Group has been named the 9th most valuable telecom brand globally in the 2024 Brand Finance Report, maintaining its position as the strongest brand in the Middle East and Africa. Moreover, for the fifth year in a row, stc is the most valuable telecom brand in the Middle East. It also ranks 3rd among the most valuable brands in the region and 2nd in Saudi Arabia, highlighting its market leadership and expansion efforts.
Notable growth
In 2024, stc Group’s brand value surged by 16 percent, reaching $16.1 billion, solidifying its position as the leading telecom brand in the Middle East. Furthermore, stc has been acknowledged as the strongest brand in the region, achieving a Brand Strength Index (BSI) score of 88.7 out of 100 and an AAA brand rating, indicating a significant enhancement of the brand compared to the prior year.
