Dear Valued Shareholders,

On behalf of my colleagues, the members of the Board of Directors, it is a pleasure to present you with solutions by stc’s first Annual Report. For over 25 years, the Company has been delivering strong operational expertise and market leading capabilities in key technology verticals across the information and communications technology value chain, evolving into the Kingdom’s leading enabler of digital transformation. Today, we provide ICT and digital solutions to a number of industries including, the Government, Education, Healthcare, and Banking to name a few.

Achieving a strategic milestone

This year, we celebrated the listing of the Company on the Saudi Stock Exchange, which marks a landmark in our journey. The Company’s listing attracted a plethora of local and international investors. The institutional side of the offering was oversubscribed by 130 times, making it one of the most successful local offerings of the year, and the Company’s market value reached SAR 18.1 billion (USD 4.8 billion) upon listing. The total size of the offering reached SAR 3.624 billion (USD 966 million), representing 20% of the Company’s capital. It is a testament to investors’ confidence in Saudi Arabia’s growing ICT market and the Company’s strong business proposition.

Future-focussed outlook

The Kingdom’s Vision 2030 informs solutions’ strategy and dictates its future outlook. The ambitious digital transformation targets in Vision 2030 provides solutions by stc with many growth opportunities within the government and private sectors with new mega projects and initiatives arising, which have increased the demand for ICT services.

As part of our 5-year (LEAP) strategy to deliver sustainable and profitable growth, we aim to maintain large stable businesses, invest in new business lines, extend customer segments to SMEs, and leverage our platform to grow outside the Saudi market.

Our team of world class talent is part of our agenda for growth. By establishing and maintaining a stimulating workplace environment, our talented team is enabled to contribute towards achieving our strategic objectives.

Improved operational performance and business development

Core ICT Services, IT Managed and Operational Services, and Digital Services are the three main ICT services and solutions the Company offers. Core ICT services contributed towards 54.1% of the revenue, while IT Managed and Operational Services contributed 25%, and Digital Services 20.8%.

The partnership with Cisco is a key relationship that was revitalized during the year. Under the new agreement, solutions by stc can offer customers new managed services products under the Cisco umbrella. We also partnered with Udemy to provide a new training platform for our employees. They now have access to more than five thousand relevant training courses. Moreover, our long-standing partnership with Hewlett Packard Enterprise (HPE) was upgraded to silver level, allowing solutions to resell and sublicense HPE products and support.

We also signed a Memorandum of Understanding (MOU) with Saudi Aramco, the world’s largest integrated oil and gas company to launch a joint innovation program for 5G technology and applications utilization in the oil and gas industry.

Board, leadership team, and employees

Our Board and leadership team have continued to work very closely and in harmony. Throughout the year, the Board has guided and strengthened the leadership team in their endeavors to achieve corporate progression and business goals.

The Board is confident the Company has a strong and talented team in place and on behalf of the Board, I would like to thank the leadership team for their strong performance in 2021, especially during the IPO.

Similarly, and on behalf of the Board I would like to extend our appreciation to the employees of solutions by stc for their efforts and hard work that made it possible for the Company to reach unprecedented heights this past year.

I would also like to extend my appreciation to my fellow Board members who have made significant contributions to the development and growth of our Company and will continue to provide advice and support to ensure that we continue to achieve success in the years to come.

Our valued shareholders

Most importantly, on behalf of the Board, I would like to express our gratitude to the valued shareholders of solutions by stc, and assure them that the future of solutions by stc is well positioned for sustainable and profitable growth.

We are committed to meeting investor expectations as we move ahead with our ambitious growth strategy, supported by consistent growth, strong profitability, operational expertise, and market-leading capabilities. We welcome you to continue to be a part of this upward growth trajectory.

Riyadh Muawad
Chairman of the Board