Saudi Arabia’s stc Group is solidifying its reputation as a global tech powerhouse, making bold strides in telecommunications and IT infrastructure. This year, the Group underscored its ambitions with a landmark $2.27 billion investment for a 9.9% stake in Telefónica, one of the world’s largest telecom players.
Expanding Horizons with Telefónica
Telefónica’s influence spans major markets, including Spain, Germany, the UK, and Brazil, with cutting-edge capabilities in cognitive intelligence, edge computing, and IoT. stc Group Chairman Mohammed K. A. Al Faisal hailed the acquisition, stating, “This long-term, significant investment reflects our strategy to build and invest in critical digital infrastructure globally.”
This bold move follows Tawal, an stc subsidiary, acquiring telecom tower assets in Bulgaria, Croatia, and Slovenia from United Group, further enhancing stc’s global reach.
A Vision for Digital Transformation
stc Group continues to position itself as a digital transformation leader in Saudi Arabia and beyond. Its diversified portfolio spans telecommunications, IT, fintech, digital media, and cybersecurity. CEO Eng. Olayan Mohammed Alwetaid highlighted the Group’s DARE 2.0 strategy, a comprehensive roadmap for growth in sectors like gaming, smart home technology, cloud services, cybersecurity, and mega-projects.
In a historic move, stc Group increased its share capital from SAR 20 billion to SAR 50 billion ($13.3 billion) in 2022—the largest in Saudi Capital Market history—fueling its ambitious growth strategy.
Driving Innovation and Connectivity
stc Group has consistently prioritized innovation. Key initiatives include:
- Establishing iot squared, a joint venture with Saudi Arabia’s Public Investment Fund (PIF), to tap into the growing Internet of Things market.
- Partnering with Alibaba Cloud, SCAI, and SITE to create the General Cloud Computing Company for Information Technology.
- Launching center3, a digital hub housing data centers and submarine cables, capitalizing on Saudi Arabia’s pivotal location at the crossroads of east and west.
The company also marked a milestone with the Saudi Vision Cable (SVC), the first high-capacity, high-speed submarine cable in the Red Sea.
Global Expansion and Strategic Moves
Beyond its investments at home, stc has expanded its global footprint. Acquiring Egypt’s Giza Systems and Pakistan’s AWAL Telecom, along with Tawal’s acquisition of telecom tower assets in Southeast Europe, reflect its broad ambitions.
Telefónica: A Natural Ally
The recent stake in Telefónica comes as the Spanish telecom giant reported strong Q2 2023 performance, with a 44.5% year-on-year increase in net income, reaching $495 million. Telefónica’s Chairman, José María Álvarez-Pallete, outlined an ambitious 2023-2026 roadmap focused on growth, profitability, and sustainability, emphasizing the company’s readiness to “shape the future.”
With its global strategy, stc Group is not just participating in the digital revolution—it’s leading the charge. Its partnership with Telefónica signals another milestone in its journey to becoming a world-class digital leader.
