The Saudi Telecom Company (STC) signed a SAR 32.6 bn (USD 8.7 bn) contract with an undisclosed public entity to set up, manage, and provide telecommunications infrastructure services, the company said in a disclosure to Tadawul.

What we know: The contract spans for 18 months for preparation and execution, followed by a 15-year operational period, according to the disclosure. STC expects to begin recognizing revenue from this project starting 4Q 2026. No further details were disclosed.

Big plans for the telecoms sector: The PIF and STC have been working to consolidate Telecoms Towers Company (Tawal) and Golden Lattice Investment (Glic) under a new entity that is going to own and manage a portfolio of around 30k towers across five countries in a bid to dominate the Kingdom’s telecom tower space. The new entity is projected to have annual revenues in the order of USD 1.3 bn, PIF said earlier.

Market reax: STC’s shares rose 2.2% at the end of yesterday’s trading day to SAR 43.2.

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