Overview
Saudi Telecom Company (STC) is a prominent telecommunications and digital services provider in Saudi Arabia and the MENA region. The company is focused on connectivity, digitalization, and offers a wide array of services, including fixed and mobile telecommunication networks, cloud computing, cybersecurity, and the Internet of Things (IoT). STC is active across the Middle East, North Africa, and Europe, emphasizing its dedication to digital transformation and innovation.
Leadership
Key Executives
- Olayan Mohammed Alwetaid: Serving as the Group Chief Executive Officer (CEO) since March 2021. He also holds key positions as Chairman of SAMENA and member of the GSMA Board, significantly contributing to STC’s growth and digital ventures.
- Ameen Fahad Alshiddi: The Group Chief Financial Officer (CFO), associated with STC since 2016, with over 25 years of experience in financial management and holding board positions in several associated companies.
- Faisal Alsaber: The Group Chief Commercial Officer (GCCO), responsible for commercial strategic plans and enhancing STC's market influence in the digital domain.
Financial Performance
STC recently secured a major $8.7 billion contract with a government entity, underscoring its strong market position. The Saudi Public Investment Fund (PIF) sold a 2% stake in STC, raising over $1 billion, illustrating investor confidence in the company. For 2024, STC's earnings before interest, taxes, zakat, depreciation, and amortization (EBITDA) stood at SAR 23,926 million, a reflection of robust financial performance.
Strategic Directions
STC aims to reinforce its role in the telecom industry through strategic initiatives that leverage its digital infrastructure for growth and innovation. The company plans to elevate its capital to $13.33 billion through bonus share offerings, facilitating regional expansion. Focused on digital transformation, STC invests in data center innovation and collaborations set for potential execution in 2023.
Competitor Profiling
Key Competitors
1. Ooredoo Q.P.S.C
- Headquarters: Doha, Qatar
- Overview: An international telecommunication provider, delivering mobile, fixed, broadband, and corporate services across North Africa, the Middle East, and Southeast Asia.
- Financial Performance: Generated revenues of US $6.4 billion in 2023 with an extensive customer base exceeding 58 million globally.
- Achievements: Pioneered the commercial launch of 5G services in Qatar, highlighting its inclination towards innovation.
2. Zain Group
- Headquarters: Kuwait
- Overview: A dominant telco presence in 8 markets within the Middle East and Africa, offering mobile voice, data, and B2B services.
- Financial Performance: Reported revenues peaking at KD 2 billion (approx. USD 6.4 billion) in 2024 with a brand value of USD 3.5 billion, backed by a robust customer engagement strategy.
3. Du (Emirates Integrated Telecommunications Company)
- Headquarters: Dubai, UAE
- Overview: Provides complete telecom services like mobile, fixed-line broadband, and IPTV in the UAE, operational since 2006.
- Unique Proposition: Focuses on sustainability and innovation through 5G and ICT solutions, holding nearly 50% market share in the UAE.
4. Mobily (Etihad Etisalat Co.)
- Headquarters: Saudi Arabia
- Overview: As the second-largest telecom operator in Saudi Arabia, Mobily is known for pioneering GSM services, maintaining a significant market presence.
Competitive Analysis
STC encounters competition from a range of innovative and geographically diverse telecom operators. Each competitor emphasizes specific strengths, such as Ooredoo's advanced 5G implementation, Zain's significant digital transformation, Du's market innovation, and Mobily's historical GSM services influence. To advance, STC must strategically assess these competitors' market strategies, technological advancements, and customer engagement tactics, ensuring it remains at the forefront of the telecom sector.
