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Edarat Communication and Information Technology Co. has signed a five-year contract with Edge Network Services Ltd. to provide data center hosting services. The agreement, valued at over 25% of Edarat’s projected 2025 revenues (including VAT), is expected to positively impact the company’s financial results starting in the first half of 2026. As of 2025, Edarat’s revenues reached SAR 192.36 million, indicating strong growth potential from this new partnership.
This contract signals Edarat’s expansion into critical infrastructure services, aligning with Saudi Arabia’s Vision 2030 goals for digital transformation. The long-term revenue boost could enhance investor confidence, particularly in the Saudi equity market, where tech-driven companies are gaining traction. Traders may view this as a catalyst for improved stock performance, especially if the partnership leads to recurring revenue streams.
For the broader market, the deal highlights growing demand for data center services in the MENA region. Investors should monitor Edarat’s quarterly reports for updates on contract execution and revenue recognition. Additionally, the company’s ability to leverage this partnership for further market penetration could influence its valuation in the coming years.
