Saudi Telecom Company (STC) has won a SAR32.64 billion ($8.7 billion) contract to develop a new telecommunications infrastructure in Saudi Arabia.
The contract was awarded by an “unknown” government entity, the Saudi-listed telco said in a bourse filing on Tuesday.
The contract includes building, operating and providing telecommunications infrastructure services.
The work will be completed in 18 months followed by 15 years of project operation. The purpose of the new infrastructure was not disclosed.
The kingdom’s telecoms infrastructure market, which was valued at $3.5 billion in 2023, is anticipated to increase at a compound annual growth rate of 7 percent by 2029, according to a report by Research And Markets.
The development of smart cities, such as Neom and Qiddiya, is one of the major factors driving substantial investments in telecoms infrastructure, the report said.
In November 2024 Saudi Arabia’s Public Investment Fund offloaded a $1 billion stake in STC in a deal that could mark the start of further equity sales as government entities seek to raise money for infrastructure spending.
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