Business

Cash-rich ‘solutions by stc’ is driving Saudi Arabia’s digital future

Published

2 years ago

01/02/2022

MNN

As the world embraces the most tech-savvy era, Riyadh-based solutions by stc has managed to make digitalization more relevant in Saudi Arabia.

Worth over SR24 billion ($6.4 billion), the company leverages modern techniques 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 struck a stellar initial public offering on Saudi Arabia’s main stock index TASI.

It has seen strong interest from investors regionally and globally, after raising SR3.6 billion in an IPO, which the company’s CEO Omar Al-Noamani said would position the company as a top digital enabler in the region.

Investor bids in the IPO surpassed the offered shares by 130 times, attracting more orders than oil giant Saudi Aramco’s offering, Bloomberg reported.

The dividend policy, which is yet to be announced, will depend on performance evaluation and growth rates, Al-Noamani earlier told CNBC Arabia in an interview.

Since its stock market debut, solutions by stc has closed in on major milestones.

Shares have soared 22 percent since then, to reach SR202 on Jan. 27, 2022.

It posted more than a 14 percent increase in profits in the first nine months of 2021, compared to a year earlier, up to SR718 million, and revenues hit SR5.76 billion in the same period.

The company has also secured several contracts worth millions of riyals. One of many is a SR201 million deal with Saudi Telecom Co. to build a data center in NEOM’s Telco Park’s digital platform.

On a broader scale, Saudi Arabia’s information and communications technology sector has a strong prospect for growth. It hit a volume of SR33.8 billion in 2018 and is forecasted to reach SR53.1 billion by 2025, according to stc.

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

It beat France, China, and Indonesia to claim the top spot among the G20 member states, after being named “Top Digital Riser”, a statement by Saudi Press Agency revealed.

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

The Riyadh-based solutions by stc, formally known as Arabian Internet and Communications Services Co., represents the internet services arm of the Kingdom’s largest telecom operator, Saudi Telecom Co.

It is 79 percent owned by stc and holds a market share of 13 percent in the local ICT sector, according to its website.

Saudi Telecom Co. owns and manages a tech venture capital fund that empowers entrepreneurs across the GCC, wider MENA region, and Turkey to set up technology businesses.

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

Source: ARABNEWS

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

2 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

6 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

7 days ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews