Saudi Telecom Company (STC) is one of the largest and most significant players in the telecommunications sector, not only in the Kingdom but across the region. Since its establishment, STC has been a cornerstone in developing Saudi Arabia's digital infrastructure and has successfully transformed into a publicly traded company listed on the Saudi financial market (Tadawul), solidifying its position as a technological and financial leader. Amid digital transformations and Saudi Vision 2030, STC continues to lead innovation and provide integrated telecommunications services for individuals and businesses, thereby enhancing its contribution to the national digital economy. In this article, we provide a detailed overview of the latest financial data, growth strategies, distribution policies, organizational structure, and key competitors, focusing on the company's role in the Saudi economic landscape. We also discuss future challenges and opportunities and address frequently asked questions about STC, providing a comprehensive picture for those interested in tracking this leading stock in the Saudi stock market.
History and Establishment of Saudi Telecom Company STC
Saudi Telecom Company (STC) was established in 1998 as part of the Kingdom's efforts to unify and develop the national telecommunications sector. The company started as a major provider of wired and wireless communications and quickly expanded to include internet and data services, as well as advanced communication solutions for individuals and businesses. In 2003, the company was publicly listed, becoming a publicly traded company on the Saudi financial market (Tadawul), which granted it greater flexibility for expansion and investment. This transformation enhanced its transparency and attractiveness to local and international investors. Over time, STC has not only focused on the local market but has also launched regional operations in Bahrain, Kuwait, and other countries, becoming a pillar of the telecommunications sector in the Middle East, keeping pace with technological developments and investing in emerging technologies such as 5G and artificial intelligence.
Ownership Structure and Management at STC
Saudi Telecom Company (STC) features a strong and stable ownership structure, with the Saudi Public Investment Fund holding the largest share of the company's stock, providing it with sustainable strategic and financial support. The company's board of directors consists of a selection of national talents and global experts in telecommunications, technology, and financial management. The board focuses on sound governance and financial sustainability, emphasizing full compliance with the regulations of the Saudi Capital Market Authority. This approach supports the executive management, which follows global best practices in operational management and product development, with clear strategies for digital expansion and sustainable growth.
Overview of STC's Activities and Services
STC offers a wide range of services including mobile communications (mobile phone), fixed-line communications, high-speed internet via fiber optics, and data solutions for individuals and businesses. The company has also expanded to provide advanced digital services such as electronic payments, cloud computing, cybersecurity, and the Internet of Things (IoT). It has subsidiaries and branches in various regions serving diverse sectors, including government institutions, large corporations, and individual consumers. STC continuously develops its services through strategic investments in infrastructure and adopting the latest technologies to achieve the best user experience both within and outside the Kingdom.
Financial Data Analysis of Saudi Telecom Company STC
STC has witnessed significant financial growth in recent years. In 2024, the company's net profit reached 24.7 billion Saudi Riyals, an increase of 86% from the previous year. In the first three quarters of 2025, net profit reached 11.58 billion Riyals, with continued strong performance in operational revenues. The stock price in the latest trading was 42.66 Riyals, and the company's market capitalization was estimated at around 180–200 billion Riyals. The company maintained a relatively low price-to-earnings ratio (8–9 times), reflecting its strong performance and operational efficiency. Recent results indicate that growth is linked to the expansion of mobile internet services, activating technological partnerships, and increasing reliance on advanced digital solutions.
Dividends and Return Policy
STC is committed to a regular dividend distribution policy for its shareholders, enhancing the stock's attractiveness for long-term investment. In the third quarter of 2025, the company announced a dividend distribution of 5.5% (0.55 Riyals per share), and the annual yield is expected to reach around 5–6% if the same distribution rate continues in subsequent quarters. This policy reflects the company's commitment to rewarding shareholders with a regular portion of its profits, while retaining another portion to fund expansion plans and invest in future technologies. The company announces any updates to its distribution policy transparently within its periodic disclosures through the Tadawul market.
Analysis of the Saudi Telecom Sector and STC's Role
The telecommunications and information technology sector in the Kingdom is one of the most dynamic and growing sectors. It is overseen by the Communications and Information Technology Commission (CITC) and experiences strong competition among major companies, with significant government support for digital transformation and Vision 2030 programs. STC stands out as the largest and most widespread provider, covering most urban and rural areas, playing a pivotal role in smart city projects, expanding 5G networks, and developing high-speed internet services. The company also invests in integrated digital services to support both government and private institutions, making it a strategic partner in national digital development.
Growth and Expansion Strategy at STC
STC relies on a comprehensive growth strategy focused on upgrading infrastructure, expanding 5G networks, and increasing reliance on fiber optics, alongside investing in emerging technologies such as big data, artificial intelligence, and the Internet of Things. Regionally and internationally, the company has branches and subsidiaries in the Gulf and North Africa, seeking to expand its presence in foreign markets. The company also strengthens its partnerships with major global technology companies to provide advanced solutions and seeks opportunities in areas such as cybersecurity, cloud computing, and digital payments, positioning itself for continued growth in a changing competitive environment.
Key Competition in the Saudi Telecom Sector
STC competes with several major companies in the Saudi market, most notably Etihad Etisalat (Mobily) and Zain Saudi Arabia. These companies offer mobile phone, internet, and business services, all striving to expand 5G coverage and provide innovative offerings to customers. This competition is supported by regulatory oversight from the government authority, which encourages fair competition and improves service quality. Despite the competition, STC maintains its leadership with a significant market share, thanks to its advanced networks and innovations in digital services. The company also faces competition from smaller firms specializing in digital services or virtual operators, prompting it to continue innovating and updating its products.
Latest Developments and News about STC (2024–2025)
STC has witnessed significant developments in 2024 and 2025, most notably signing a strategic partnership with AST SpaceMobile to provide satellite internet services in remote areas and increasing its investments in digital services such as electronic payments and cloud storage. One of its subsidiaries secured a Murabaha financing of 5.5 billion Riyals from local banks to support expansion plans. These developments have reflected positively on financial performance, with the company recording strong growth in profits and revenues while continuing to distribute regular dividends to shareholders. The company continues to launch new services and technologies to enhance its market position and deepen digital transformation in Saudi Arabia.
Financial Inclusion and Corporate Social Responsibility at STC
STC plays a fundamental role in promoting financial inclusion and digital transformation by providing electronic payment solutions and comprehensive internet services even in remote areas. The company is keen to implement corporate social responsibility programs that include supporting digital education, environmental sustainability initiatives, and fostering technological innovation. The company is committed to supporting national talents, providing an inspiring work environment, and contributing to human development programs, enhancing its position as a key partner in achieving the goals of Saudi Vision 2030, not only as a technology provider but also as a community and developmental actor.
Impact of Government and Regulatory Policies on STC's Business
The activities of Saudi Telecom Company (STC) are subject to the oversight of the Saudi Communications and Information Technology Commission (CITC), which sets sector policies and defines service quality and pricing requirements. STC complies with these regulations and benefits from government support for digital and infrastructure projects. The commission recently imposed standards for 5G coverage and tower sharing, requiring STC to make additional investments in networks. Government policies have also contributed to enhancing competition, ensuring investor rights, and facilitating financing for sector projects. Overall, these policies positively impact the sustainability and growth of the company's operations.
Future Growth Prospects and Potential Challenges
As digital transformation continues in the Kingdom and reliance on technological services rises, significant opportunities arise for STC to continue growing, particularly in areas such as smart cities, artificial intelligence, and the Internet of Things. The company's expansion into regional markets and pursuit of global technological partnerships enhance its competitive capacity. On the other hand, the company faces challenges related to increasing competition, the need for continuous investment in infrastructure, and changing customer preferences. STC's ability to innovate and respond quickly to technological and regulatory changes remains a critical factor in maintaining its leadership and sustainability.
Commitment to Governance and Transparency at STC
STC places great importance on corporate governance and transparency, committing to regular disclosures of its financial results and strategic plans through the Tadawul market, operating under the supervision of the Saudi Capital Market Authority. The board of directors follows strict policies to ensure the protection of shareholder rights and implement best practices in management and financial oversight. The company also provides periodic reports on performance and dividend distributions, adhering to international disclosure standards, which enhances investor confidence and the trust of the local and international financial community in the integrity and transparency of its operations.
الخلاصة
Data and analyses confirm that Saudi Telecom Company (STC) remains a cornerstone in the Saudi financial and technological sector, thanks to its leading position, strong financial results, and ambitious strategies. The company's continued dividend distribution and adoption of the latest technologies enhance its standing among investors and support national digital transformation goals. However, investing in shares of major companies like STC requires careful consideration of financial data and analysis of the risks and opportunities associated with the rapidly changing telecommunications sector. We emphasize the importance of consulting a licensed financial advisor before making any investment decisions and utilizing the analytical tools and data available on the SIGMIX platform to stay updated on market developments and analyze leading company stocks.
الأسئلة الشائعة
The main activities of Saudi Telecom Company STC include providing mobile and fixed-line communication services, high-speed internet solutions (fiber optics), data services, as well as IT solutions for companies and institutions. The company has expanded to include modern digital services such as electronic payments, cloud computing, cybersecurity, and the Internet of Things, operating through branches and subsidiaries both inside and outside the Kingdom to meet the needs of individuals and the business sector alike.
The price of STC's stock in the latest closing was approximately 42.66 Saudi Riyals. The market value is calculated by multiplying the stock price by the number of outstanding shares, making the market value around 180–200 billion Riyals, depending on the market price and the number of shares traded. These figures reflect STC's position as one of the largest companies listed on the Tadawul Saudi market.
The current price-to-earnings (P/E) ratio for STC is estimated to be between 8 and 9 times, based on the high earnings from the last year and the current stock price. The annual dividend yield is approximately 5–6%, thanks to a regular dividend distribution policy that considers the interests of shareholders, with a distribution of 0.55 Riyals per share for the third quarter of 2025, and the expectation of continuity in subsequent quarters.
In 2024, STC achieved a net profit of 24.7 billion Saudi Riyals, an increase of 86% from the previous year, and in the first three quarters of 2025, profits reached 11.58 billion Riyals. This growth is attributed to increased revenues from telecommunications and data services, expansion in digital solutions, and new technological partnerships, reflecting the company's strong financial and operational performance.
Competition in the Saudi telecommunications sector is concentrated among STC, Etihad Etisalat (Mobily), and Zain Saudi Arabia. These companies compete to provide mobile and fixed-line services, high-speed internet, and business solutions, with differences in network coverage and quality of digital services. Competition is supported by government policies aimed at improving service quality and encouraging innovation.
STC focuses on developing and expanding 5G networks, enhancing fiber optic internet services, and investing in digital technologies such as artificial intelligence and the Internet of Things. The company also seeks to expand its regional and international operations through its subsidiaries and establish partnerships with global technology companies to provide advanced solutions in areas such as cloud computing and cybersecurity.
STC is subject to the oversight of the Communications and Information Technology Commission (CITC), which sets regulations for service quality, pricing, and frequency distribution. The company benefits from government support for digital infrastructure projects while committing to ongoing investments to meet regulatory requirements and develop networks, enhancing its competitiveness and sustainability in the market.
Yes, STC follows a policy of regular cash dividend distribution, often quarterly or semi-annually. In the third quarter of 2025, a distribution of 0.55 Riyals per share (5.5%) was made, and distributions continue based on business results and the company's announced policy, which enhances investor confidence in the stock.
Among the latest initiatives is the signing of a partnership with AST SpaceMobile to provide satellite internet coverage in remote areas, in addition to developing cloud computing services, electronic payments, and the Internet of Things. The company continues to update its networks and enhance its investments in artificial intelligence to support digital transformation in the Kingdom.
Yes, key challenges include increasing competition in the telecommunications sector, substantial investment requirements for network and infrastructure upgrades, and continuous changes in technology and customer preferences. STC addresses these challenges through continuous innovation, service diversification, and strategic partnerships, while adhering to governance and transparency policies.
The company provides regular official disclosures through the Tadawul market, in addition to publishing financial reports on its website. News about the company can also be followed through platforms like Argaam and specialized financial analysis platforms like SIGMIX, which offer updated data and analyses on stock performance and the sector as a whole.