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Arabian Internet and Communications Services Co. (solutions) announced a SAR 484.78 million contract with Saudi Telecom Company (stc) to develop and expand its internet and communication networks. The agreement, signed on May 30, includes upgrading internal and international networks to support 5G services, replacing outdated equipment, and establishing new data centers in key Saudi cities. The contract spans 36 months, with financial impacts expected to materialize starting Q3 2026. stc, which holds a 79% stake in solutions, is the largest shareholder in the company.
This development is significant for Saudi Arabia’s tech sector, as it underscores stc’s commitment to enhancing its digital infrastructure to meet 5G demands. The contract could boost solutions’ revenue and operational visibility, potentially influencing its stock performance. For traders, the deal highlights the growing importance of telecom infrastructure in the region’s economic diversification plans, such as Vision 2030. Investors should monitor the project’s execution timeline and any regulatory or technical challenges that may arise.
The partnership also reflects stc’s strategic focus on maintaining its market leadership in Saudi Arabia’s telecom industry. For Gulf investors, the long-term financial impact on solutions’ balance sheet and stc’s service capabilities will be critical to track. Additionally, the integration of 5G-ready infrastructure may attract broader interest from regional telecom players seeking similar upgrades.
