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RIYADH: At a time when the world is embracing the most tech-savvy era, Riyadh-based solutions from stc have managed to make digitization even more important in the Kingdom of Saudi Arabia.

Valued at more than 24 billion Saudi riyals ($6.4 billion), the company takes advantage of modern technologies to enrich its portfolio with innovative products and services, aimed at revolutionizing traditional businesses.

The company known as “Solutions by stc” took a leap last year when it hit a stellar initial public offering on Saudi Arabia’s main stock index TASI.

It has attracted strong interest from investors both regionally and globally, after raising 3.6 billion Saudi riyals in an initial public offering, which CEO Omar Al-Noamani said would position the company as the best digital enabler in the region.

Bloomberg reported that investor bids for the IPO exceeded 130 times the offered shares, attracting more requests than oil giant Saudi Aramco’s bids.

Al-Noamani said in an interview with CNBC Arabia that the dividend policy, which has not yet been announced, will depend on performance evaluation and growth rates.

Since its inception in the stock market, stc Solutions has closed its doors in important stages.

The shares have risen 22 percent since then to reach 202 riyals on January 27, 2022.

It recorded an increase in profits of more than 14 percent in the first nine months of 2021 compared to the previous year, to reach 718 million riyals, and revenues amounted to 5.76 billion riyals in the same period.

The company also won several contracts worth millions of riyals. Among the many deals is a SAR 201 million deal with STC to build a data center at Telco Park’s digital platform in NEOM.

On a larger scale, the ICT sector in Saudi Arabia has strong opportunities for growth. Its volume reached 33.8 billion riyals in 2018 and is expected to reach 53.1 billion riyals by 2025, according to stc.

Amid a sectoral boom, the Kingdom ranked first among 140 countries in its digital competitiveness in 2020.

A statement issued by the Saudi Press Agency revealed that it had defeated France, China and Indonesia to top the list of G20 member countries, after being named the “top digital riser”.

The local ICT industry is a major driver of the Vision 2030 blueprint for economic and social reform, as it helps Saudi Arabia diversify away from oil and moves it closer to becoming the future digital hub.

stc’s Riyadh-based solutions, officially known as the Arab Internet and Communications Services Company, represent the internet services arm of the Kingdom’s largest telecom operator, STC.

According to its website, it is 79 percent owned by stc and a 13 percent market share in the local ICT sector.

STC owns and operates a technology venture capital fund that enables entrepreneurs across the GCC, MENA, and Turkey regions to set up technology businesses.

Headquartered in Riyadh, STC Ventures or STV was the largest venture capital fund in the Middle East when it was established with a size of $500 million.

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