The symbol tadawul 7010 holds a significant position in the Saudi stock market, representing the stock of Saudi Telecom Company (STC), the largest telecom operator in the Kingdom. The importance of this symbol is reflected in the company's size, the high liquidity of the stock, and its substantial impact on the general index (TASI). In recent years, STC has witnessed remarkable growth in revenues and profits, supported by its expansion into 5G technologies, digital services, and infrastructure investment. With an average stock price ranging between 115 and 120 Saudi Riyals at the beginning of 2025, and a market capitalization nearing 550 billion Riyals, STC is among the largest companies listed on Tadawul after Aramco. This article provides a detailed overview of the performance of tadawul 7010, financial indicators, dividend distribution policy, competition in the telecommunications sector, recent developments and their impact on the stock, along with a quick comparison with other companies like Hael Cement (symbol 3001). We will maintain a neutral educational approach without providing investment recommendations, while reminding the importance of consulting a licensed financial advisor before making any investment decisions.
What is tadawul 7010? Definition and Importance in the Saudi Stock Market
The symbol tadawul 7010 is the official identifier for the stock of Saudi Telecom Company in the Saudi financial market (Tadawul). This symbol represents STC, which was established in 1998 and later underwent a significant transformation after its IPO and rebranding to STC in 2017. The 7010 stock ranks prominently among non-oil sector stocks, providing investors with access to one of the most dynamic and growing sectors in the Saudi economy. The importance of this symbol is evident in its substantial impact on the general index, as it constitutes a high relative weight in TASI. Additionally, the high trading volume and liquidity of this stock indicate institutional and individual interest as a key component in any major Saudi investment portfolio.
Overview of Saudi Telecom Company (STC)
STC is the largest provider of telecommunications and information technology services in the Kingdom, characterized by a diverse range of services including mobile and fixed-line telephony, high-speed internet, and business sector services such as cloud computing and digital payments. The company has a wide presence within Saudi Arabia and regional investments in the Gulf countries, Egypt, and Jordan. With over 50 million subscribers, STC continues to develop its digital infrastructure, heavily investing in 5G technologies and the Internet of Things (IoT). The company also benefits from national digital transformation initiatives (Vision 2030) and plays a pivotal role in connecting individuals and businesses to the modern digital economy.
Financial Performance of tadawul 7010: Key Indicators
STC's stock (tadawul 7010) has shown strong financial performance in recent years. The average stock price was around 115 Riyals at the end of 2024 and the beginning of 2025, with daily fluctuations reflecting market dynamics. The company's market capitalization exceeds 550 billion Riyals, making it one of the largest listed companies after Aramco. In terms of profitability, the company recorded an annual net profit of approximately 20 billion Riyals in 2024, with significant revenue growth exceeding 50 billion Riyals. The stock features a moderate price-to-earnings (P/E) ratio of about 15 times, attributed to the stability of the company's earnings and strong cash flows. Additionally, the high operating profit margin reflects the company's operational efficiency despite increasing competition.
Dividend Distribution Policy and Cash Yield
STC is known for its generous and stable dividend distribution policy, making its stock attractive to income-seeking investors. The company distributed approximately 4.0 Saudi Riyals per share in 2023, equivalent to about 3.5% of the stock price at that time. Annual distributions are expected to continue in the range of 4.5 to 5.0 Riyals per share in 2024/2025, yielding a cash return of 4–5% based on the current price. This policy reflects management's commitment to rewarding shareholders and distributing a significant portion of realized profits while maintaining the company's ability to invest in future growth projects.
Analysis of the Saudi Telecommunications Sector and STC's Position
The telecommunications sector is considered one of the main pillars of the Saudi economy, supported by digital transformation initiatives and the adoption of the latest technologies such as 5G and cloud computing. STC holds the largest market share (approximately 60–65%), backed by an extensive network and a variety of services for individuals and businesses. The company faces competition from Mobily (7040) and Zain Saudi Arabia (7020), which target different customer segments through improved offerings and expanded coverage. With the traditional telecommunications market becoming saturated, companies are moving towards providing advanced digital services such as IoT, cybersecurity, and digital financial services, enhancing future growth opportunities.
STC's Main Competitors: Mobily and Zain Saudi Arabia
STC primarily competes with Mobily (symbol 7040) and Zain Saudi Arabia (symbol 7020) in the local telecommunications market. Mobily holds a market share ranging from 20–25%, while Zain captures about 10–15%. Both companies offer mobile, internet, and technology solutions for individuals and businesses. Mobily aims to strengthen its position in the business sector, while Zain focuses on competitive offerings and limited-range internet services. Despite the intense competition, STC retains the advantage of a broader network and substantial investments in infrastructure, enabling it to keep pace with technological developments and meet increasing demand.
Digital Growth and Technological Transformation at STC
STC has invested heavily in digital transformation to expand its revenue sources beyond traditional services. Notable initiatives include the launch of 5G services across most of the Kingdom and the provision of advanced business solutions such as cloud computing, data analytics, and cybersecurity. The company has also expanded into financial services through 'STC Pay,' which has become one of the leading digital wallets in the Saudi market. Additionally, STC invests in artificial intelligence and IoT projects to provide smart solutions for cities and major government projects, supporting its future growth plans.
Trading Indicators and Liquidity of Stock 7010 on Tadawul
STC's stock (7010) is characterized by high liquidity and a large daily trading volume, making it a preferred choice for individual and institutional investors. This reflects market confidence in the company's stability and its ability to achieve sustainable profits. Furthermore, STC's inclusion in global indices (such as MSCI and FTSE) attracts foreign investment flows. On the other hand, high liquidity helps reduce the price spread, facilitating investor entry and exit without incurring significant losses due to immediate price fluctuations.
Challenges and Opportunities for STC and the Telecommunications Sector
Despite STC's strong position, the company faces challenges such as market saturation in traditional telecommunications services and increasing price competition. Continuous innovation is also essential to keep pace with rapid technological changes and the emergence of new competitors from outside the sector (such as global tech companies). Conversely, government initiatives for digital transformation, smart city projects, and the growing demand for internet services and infrastructure provide significant growth opportunities. STC is heavily investing in research and development and seeking strategic partnerships to enhance its capabilities in artificial intelligence and digital solutions.
Recent Developments at STC and Their Impact on the Stock
In 2024 and 2025, STC announced a series of new projects to enhance 5G network coverage and provide advanced digital solutions for businesses and government entities. Key developments include the launch of STC Pay services, partnerships with global technology companies, and investments in artificial intelligence. The company has also achieved external expansions through regional alliances to increase its revenues and diversify its income sources. These developments have reflected in the stability of the stock price near its historical highs, with the continuation of a generous cash distribution policy for shareholders.
Quick Comparison: STC (7010) vs. Hael Cement (3001)
Stock 7010 operates within the telecommunications sector, while Hael Cement (3001) belongs to the building materials sector. Hael Cement experienced a decline in financial performance during 2023-2024, with a decrease in net profit and difficulty meeting listing requirements. In contrast, STC maintained steady profit growth and clear financial strength. In mid-2024, it was announced that Hael Cement's stock would be delisted from the market due to poor financial performance, highlighting the importance of monitoring financial and sector indicators for any stock before making investment decisions.
Impact of Government and Economic Trends on Stock 7010
STC benefits from government support for digital transformation initiatives (Vision 2030), which encourage the expansion of telecommunications networks and the adoption of new technologies such as 5G and artificial intelligence. Additionally, smart city projects, the expansion of e-commerce, and increased demand from companies for digital solutions support the company's growth. On the other hand, regulatory changes or the emergence of new regional competitors may affect market dynamics, requiring the company to be flexible in its strategic decisions to maintain its leadership.
Importance of Regular Monitoring of Financial Indicators and Official Reports
Investors and those interested in STC's stock (7010) should monitor the quarterly financial disclosures and annual reports issued by the company and the Tadawul market. These reports provide accurate information about revenues, net profit, cash flows, future plans, and the level of cash distributions. Regular monitoring also helps evaluate the company's performance compared to competitors and track any significant developments such as acquisitions or strategic partnerships. It is always advisable to rely on official and reliable sources to ensure the accuracy of information when analyzing the performance of any stock.
Conclusion
The stock of tadawul 7010, belonging to Saudi Telecom Company (STC), represents one of the cornerstones of the Saudi financial market due to its size, liquidity, and strong financial performance. The stock reflects the strength and growth of the telecommunications sector, supported by digital transformation and investment in infrastructure and modern technologies. Despite competition and challenges, STC maintains a leading position that allows it to capitalize on future opportunities. Investors and interested parties are advised to follow periodic reports and read official financial analyses through the SIGMIX platform, while consulting a licensed financial advisor before making any investment decisions to ensure the protection of their interests and achieve their financial goals.
Frequently Asked Questions
tadawul 7010 refers to the stock of Saudi Telecom Company (STC) in the Saudi financial market (Tadawul). This identifier is used to track and monitor the company's stock performance within the market, and it is one of the most important listed stock symbols due to its significant weight in the general index TASI. Trading 7010 is the main entry point for investors looking to invest in the Saudi telecommunications sector.
STC provides integrated telecommunications services, including mobile and fixed-line telephony, high-speed internet, and business sector solutions such as cloud computing and digital payments. The company holds the largest market share in Saudi Arabia and serves millions of subscribers from individuals and businesses, with increasing investments in technology and digital transformation.
STC's stock showed strong performance in 2024, with an average stock price ranging between 115 and 120 Saudi Riyals, and a market capitalization of about 550 billion Riyals. The company achieved an annual net profit of approximately 20 billion Riyals, with revenues exceeding 50 billion Riyals. The stock also maintained a moderate price-to-earnings ratio (around 15 times) and stable cash returns for shareholders.
STC follows a regular and generous dividend distribution policy, having distributed around 4.0 Saudi Riyals per share in 2023 (about 3.5% of the stock price at that time). Annual distributions are expected to continue in the range of 4.5 to 5.0 Riyals per share in 2024/2025, yielding a cash return of 4–5% based on the current price, attracting those seeking regular income.
STC's main competitors are Mobily (symbol 7040) and Zain Saudi Arabia (symbol 7020). Mobily holds a market share of approximately 20–25%, while Zain captures 10–15%. Both companies offer mobile, fixed-line, and internet services, competing with STC on service quality, coverage expansion, and improving customer offerings.
STC has heavily invested in 5G technologies, cloud computing solutions, and the Internet of Things (IoT), in addition to providing digital financial services through STC Pay. The company has also partnered with global tech firms to enhance innovation and achieve digital transformation, positively impacting revenue growth and diversifying income sources.
STC faces challenges such as market saturation and increased price competition from local and regional companies, in addition to the need for innovation to keep pace with technological developments. Conversely, government digital transformation projects, smart city expansions, and rising demand for internet services present significant growth opportunities, especially with the company's ongoing investment in infrastructure and digital services.
The Saudi government strongly supports the telecommunications sector through Vision 2030 and digital transformation initiatives, providing growth opportunities for leading companies like STC. These trends positively influence the company's results, especially with the increasing demand for digital services, infrastructure expansion projects, and the adoption of modern technologies in the national economy.
STC's stock operates in the telecommunications sector, while Hael Cement (3001) belongs to the building materials sector. While STC has achieved strong financial performance and sustainable profit growth, Hael Cement has seen a significant decline in financial results, leading to its delisting from the market in 2024 due to operational and financial difficulties.
Quarterly financial reports and official disclosures issued by STC and the Tadawul market are essential sources for objectively analyzing and evaluating the stock's performance. These reports provide accurate data on revenues, profits, distributions, and the company's future plans, helping investors make informed decisions based on reliable information and continuous updates.
STC's stock features a generous dividend policy and stable financial performance, making it a popular choice for investment portfolios that prefer regular income. However, it is always essential to consult a licensed financial advisor and study sector changes before making any investment decision to ensure achieving the desired financial goals.
The performance of stock 7010 can be monitored through the official website of the Saudi financial market (Tadawul), the company's quarterly reports, financial analysis platforms, and specialized economic news. Platforms like SIGMIX also provide continuous updates and sector comparisons to help investors track the latest developments and effectively analyze stock indicators.