Riyadh, 9 July 2025 – As part of Saudi Arabia’s Vision 2030 drive, STC (Saudi Telecom Company) has secured a SAR 32.64 billion (~US$8.7 bn) contract with a government entity to design, build, and manage telecom infrastructure over the next 15 years, following an 18‑month rollout phase .
Contract Overview:
Contract Duration: 18 months for setup + 15 years of operations
Financial Impact: Revenue will begin in Q4 2026 and flow through 2041
STC’s Recent Financials: For the first nine months of FY, reported revenue of SAR 56.6 bn and net profit of SAR 11.2 bn
Strategic Significance:
Nationwide Digital Infrastructure: Enabling expansion of 5G, fiber broadband, cloud computing, IoT networks, and cybersecurity platforms
Goalfore Advisory
Economic & Technological Growth: Aligns with Vision 2030 goals of economic diversification away from oil, and bolsters growth of ICT sector projected at 7.1% CAGR through 2029 .
Financial Assurance: Predictable long-term revenue enhances STC’s robustness and investor confidence; shares rose ~2–3% post-announcement
Market & Expert View:
According to MEED, this contract “underscores STC’s central role in enabling digital transformation” across vital sectors like smart cities and enterprise IT
Telecom Review.
.Sector analysts view it as establishing a stable revenue stream and an operational catalyst for regional growth.
Why It Matters:
Strategic anchor: Positions STC as the infrastructure backbone of Saudi’s digital economy
Vision 2030 enabler: Crucial for rollout of 5G, nationwide fiber, and smart city initiatives
Investor confidence: Large scale, government-backed projects elevate both market value and brand strength
