Saudi PIF and stc group sign agreement to establish new IoT company
Saudi Arabia’s Public Investment Fund (PIF) and stc Group (stc) have announced the signing of a joint venture (JV) agreement to establish a new Internet of Things (IoT) company.
This is subject to satisfying the terms of the JV agreement and obtaining approvals from the authorities. The new company will be 50% owned by PIF and 50% by stc and will be headquartered in Riyadh.
The joint venture agreement is part of PIF and stc’s efforts to drive the rapid growth of IoT across Saudi Arabia. The new company will leverage the expertise and technology of existing IoT partners, including stc.
It will also help drive IoT adoption by being a technology-agnostic service provider with offerings in the smart industrial manufacturing sector, smart logistics transport sector and smart cities, according to a statement. Additionally, the company will also help build an ecosystem by providing consulting, implementation, and training services, as well as facilitating financing models to support businesses in their IoT adoption.
Telecom, Media & Technology is a strategic sector under the #PIFstrategy.#PIFjoint venture agreement with @stc creating a new IoT business is an important step towards diversifying the economy by favoring sectors, localizing knowledge and developing the digital ecosystem.
— Public Investment Fund (@PIF_fr) April 3, 2022
Yazeed AlHumied, Vice Governor and Head of MENA Investment at PIF, said, “Partnering with stc as one of the national champions in the information and communication technology (ICT) sector will help unlock this promising sector and will contribute to PIF’s efforts to localize cutting-edge technologies and knowledge in Saudi Arabia and further develop a digital economy, in line with the goals of Vision 2030.
“The company will create significant business opportunities, high-quality jobs, and improve the productivity and efficiency of entities adopting IoT solutions in their operations.”
“The Internet of Things has been identified in stc’s “DARE 2.0” strategy among the five strategic areas of investment. It is at the heart of what we do and aligns with Saudi Arabia’s digital transformation initiatives, supported by PIF,” added Olayan Al Wetaid, CEO of stc Group.
According to local market research, the kingdom’s IoT market size is growing tremendously to potentially reach SAR 10.8 billion by 2025 with an annual growth rate of 12.8%.
The company will aim to equip the targeted industry to achieve the fourth industrial revolution through the activation of autonomous technologies, artificial intelligence, digital twin, sensors and other advanced domain-specific technologies, the statement added.
Meanwhile, stc has invested in building its 5G and NB-IoT connectivity infrastructure to support IoT enablement with over 15,000 communication towers and over 85% coverage rate of urban areas. . This enables the possibility of connecting nearly 500 million IoT devices in the kingdom.