In the next 5 years, STC (Saudi Telecom Company) is likely to evolve into a leading regional digital powerhouse with a strong presence in telecommunications, technology, and digital services. Here’s why:

1. Dominance in 5G & Beyond

STC is already investing heavily in 5G infrastructure. By 2030, we could see them leading in 6G research or other next-gen technologies.
Enhanced focus on IoT (Internet of Things), smart cities, and autonomous technologies as part of Saudi Arabia’s Vision 2030.

2. Expansion into New Markets

Likely to expand its influence across the MENA region by acquiring or partnering with smaller telecom operators and tech companies.
Potential entry into African or Asian emerging markets through joint ventures or partnerships.

3. Digital Transformation Leader

Diversification from traditional telecom services into areas like cloud computing, AI-driven platforms, and cybersecurity.
Expansion of STC Pay into a full-fledged fintech service, possibly integrating more advanced banking services and blockchain solutions.

4. Sustainability & ESG Focus

Increased investments in green energy and sustainable network infrastructure in line with global trends and Saudi Arabia’s sustainability goals.
Focus on reducing the carbon footprint of its data centers and telecom infrastructure.

5. Financial Growth

Given its current market dominance and government backing, STC will likely continue to post steady revenue growth.
Expansion of revenue streams through premium enterprise services, international operations, and advanced digital platforms.

Why This Will Happen

Government support through Vision 2030 initiatives and economic diversification plans.
Strong investment capacity backed by its market leadership and financial health.
Increasing consumer demand for faster internet, IoT, smart cities, and cloud services in the region.

In short, STC is set to transition from being a traditional telecom operator to becoming a major tech-driven conglomerate in the Middle East, much like how AT&T or SoftBank diversified globally.

As of November 2024, stc Group reported revenues of SAR 56.6 billion for the nine-month period, reflecting a 3.92% increase compared to the same period the previous year.

While specific revenue and earnings projections for the next five years are not publicly disclosed, several factors suggest potential growth:

Digital Transformation Initiatives: stc's investments in cloud computing, IoT, and fintech are expected to open new revenue streams.
Infrastructure Expansion: Ongoing enhancements in 5G, fiber optics, and data centers position stc to meet increasing demand for high-speed connectivity.
Strategic Partnerships: Collaborations with major projects like NEOM and Red Sea are likely to boost stc's service offerings and market reach.

These initiatives align with Saudi Arabia's Vision 2030, aiming to diversify the economy and promote digital innovation, which could positively impact stc's financial performance in the coming years.

A 5.5% annual growth rate for STC seems reasonable and even slightly conservative, considering several key factors:

1. Market Position & Demand Growth

STC holds a dominant market share in Saudi Arabia’s telecom sector.
Demand for high-speed internet, 5G adoption, and IoT services is growing rapidly, which will drive steady revenue increases.

2. Alignment with Saudi Arabia’s Vision 2030

The government's strong push toward digital transformation and smart city projects (e.g., NEOM and The Line) will fuel additional revenue streams.
STC will likely benefit from public-private partnerships and infrastructure expansion projects.

3. Diversification of Services

Expansion into cloud computing, cybersecurity, and fintech (via STC Pay) opens up higher-margin revenue streams.
Strong international partnerships could increase its market footprint in the MENA region.

4. Historical Performance

STC has posted growth rates in the range of 4–6% annually over the past few years, even amid global economic slowdowns.
If macroeconomic conditions remain stable, STC could easily sustain or even exceed a 5.5% CAGR.

Potential Upside Factors

Faster-than-expected adoption of 6G or other next-gen technologies.
Larger international expansion or major acquisitions.

Risks to Growth

Market saturation in Saudi Arabia could limit domestic growth.
Increased competition from regional players or disruptive tech companies.

Conclusion: A 5.5% annual growth rate seems both achievable and realistic, with potential for higher growth if STC capitalizes on regional opportunities and government-driven digital initiatives.

Saudi Telecom set to evolve into a digital powerhouse with strong government backing

Shared on12 Aug 25Fair value Increased 137%

Shared on04 Jul 25Fair value Decreased 46%

Shared on12 Aug 25
Fair value Increased 137%

Shared on04 Jul 25
Fair value Decreased 46%