stc pens JV deal to launch cloud computing firm

  • Date: 22-May-2022
  • Source: Mubasher
  • Sector:Economy
  • Country:Middle East
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stc pens JV deal to launch cloud computing firm

Riyadh – Mubasher: Saudi Telecom Company (stc) has signed a joint venture (JV) agreement to set up a limited company specialised in cloud computing services at a total capital of SAR 894 million.

stc inked the agreement with eWTP Arabia Technology Innovation Limited Company (eWTPA), Singapore-based Alibaba Cloud, Saudi Company for Artificial Intelligence (SCAI), and Saudi Information Technology Company (SITE), according to a bourse disclosure on Sunday.

The JV deal comes in line with Saudi Arabia's Vision 2030 for localised hyperscaler cloud computing amid the increasing demand for public cloud services (PCS) and products.

Under the partnership, stc will own 55% of the new company’s shares, while eWTPA will hold 27% and Alibaba Cloud will acquire 10% equity. In addition, SCAI and SITE will own 4%, each, of the total shares.

Launching the new firm is expected to have a long-term positive financial impact on stc, which will earmark SAR 491.70 million (55%) of the total investment from its own resources.

It is worth noting that last April, stc penned SAR 195 million contract with Arabian Internet and Telecommunication Company (solutions) to renew Oracle software licence for three years.