It is with great pride that I present to you the Annual Report of solutions by stc for the year ended 31 December 2022.

solutions by stc posted stellar performances across all business lines in 2022, continuing to build on the successes of the previous year and contributing to net revenue growth by 22% to SAR 8,805 million. Our strong financial results are a testament to our market leadership and a solid indicator of future sustainable growth. By delivering a strong financial performance we were able to reinforce our position as the leading enabler of digital transformation in the Kingdom and the number one provider of information technology solutions.

During 2022, solutions by stc took bold strides towards achieving the goals of our ambitious growth strategy; with the acquisition of Giza Systems. The first of its kind for solutions by stc, the acquisition was successfully completed in October of 2022. By gaining a strong foothold in new geographic markets, while diversifying and deepening our service offerings, we have clearly signaled our ability to expand and compete in the international arena.

Guided by the Company’s dynamic Mergers & Acquisition (M&A) strategy, we look forward to acquiring a 100% stake in ccc by stc, the Kingdom’s business process outsourcing (BPO) market leader. These moves will strengthen our capacity and build new capabilities in solutions by stc’s professional and managed services offering.

Human Capital as the beating heart of the Company

This is an exciting period of expansion and growth for the entire solutions by stc family, as over 300 new employees joined the Company, bringing new ideas and fresh energy to our dynamic work environment. We also welcomed strengthening of our human capital following the acquisition of Giza Systems, with their team of over 1,500 professionals.

Continuous investment in human capital remained a key component of the Company’s success in 2022. Implementing the BEAM 2.0 strategy, we continue to scale up digitalization within the Company, with significant improvements to efficiency and productivity. Upskilling our talented workforce was another focus area in 2022, with talent incubation programs, and continuous learning and development going hand in hand with employee engagement activities which enhanced employee experience and helped attract and retain corporate talent. We were able to provide over 100,000 hours of training for our teams, in line with the Company’s Learning and Development programs.

The diversity of our expert workforce is another key element of our successful workplace culture. Approximately 18% of our team is female, and several initiatives are in place to continually increase the intake of female talent. We believe in the value of our empowered female employees, and are committed to continuously improve our work environment, enabling all employees to thrive.

In recognition of our successful corporate culture and work environment, solutions by stc received a number of awards in 2022, including: the HRSD Labor Award for Outstanding Work Environment; and Great Place To Work® awards for Best Workplace in KSA, Best Workplace in Middle East, Best Workplace in Asia, and Best Workplace for Saudi Nationals.

Building strong business relationships

As per solutions by stc’s 2020-2025 LEAP Strategy: advancing customer success and maintaining a strong partner ecosystem plays a key role in the Company’s plans for growth, expansion, and business sustainability.

With our customers as the central focus, we worked to develop and improve the capabilities that would better serve their requirements. Testament to the Company’s drive for excellence in customer satisfaction, solutions by stc recorded a 91% Customer Satisfaction (CSAT) score in 2022 and was recognized with a number of awards including the ICXA Award (International Customer Experience Award). The fruits of our efforts were also reflected in solutions by stc’s Managed Services; featuring end-to-end management of network infrastructure, seeing significant demand in 2022 doubling the growth of our customer base. Showcasing solutions by stc’s reliability in project delivery, the Company was awarded three International Project Management Awards in 2022: in the Communications and Information Technology, Change Management and Product Development, and Mega Projects categories.

We are also proud to work with over 170 global and local technology innovators, and have achieved the highest partnership level with several leading Information and Communication Technology (ICT) giants. By consciously engaging and enabling local suppliers and SMEs, solutions by stc has also fostered the growth of the Kingdom’s digital economy and ICT market. Our robust ecosystem of partners continues to enable solutions by stc to deliver high-quality global products and services, and cutting-edge technologies to our customers.

Enabling the Kingdom’s digital transformation

Delivering on our promise as the leading ICT and digital services provider in the Kingdom, solutions by stc is the trusted partner of pivotal government organizations and leading private sector entities; in support of their digital advancement and development. Foremost amongst these were opportunities to embark on major digital transformation projects with key clients in central administration, public security, financial services, oil & gas, real-estate, and hospitality sectors.

We are honored to be appointed to support the Smart City strategy, implemented by The Ministry of Municipal Rural Affairs and Housing (MOMRA), which is a major step toward creating citizen-centric cities that reap the benefit of smart services and state-of-the-art technology. solutions by stc will take the lead in designing, building, implementing, managing, and operating ICT infrastructure required for key Smart Cities in the Kingdom.

Awards and recognition

Among our proudest achievements in 2022, was being ranked the “No. 1 IT services provider in Saudi Arabia” by IDC for the 7th consecutive year. As the market leader for IT solutions in the Kingdom, we are committed to delivering the best value to our customers, whilst developing the IT sector and fraternity.

During the year, we also won a number of local and international awards, including the Saudi Capital Market Award for “Best Listing Company in the Saudi Market”; ISO 37301 Compliance Management Certification and ranking in the “Top 100 Companies in the Middle East” by Forbes. Our achievement of the ISO 31000 Risk Management Certification showcases our existing capabilities and reiterates the Company’s commitment to enhancing our practices in the years to come.

Following solutions by stc’s successful Initial Public Offering (IPO) last year, the Company has also been included in the MSCI Emerging Market Index and the MSCI Saudi Arabia Index, reflecting our attractiveness to investors.

Delivering a superior performance

In 2022, solutions by stc was able to build on the tremendous success of its IPO. Capitalizing the trust and confidence of investors, both local and foreign, the Company was able to capitalize on several growth opportunities.

The successes we have enjoyed this year would not have been possible without the vision and expertise of the Board of Directors and Management. I would like to extend my heartfelt thanks to both for their unwavering guidance and continuous support. I am grateful for the talented team at solutions by stc, whose dedication to the success of the Company remains invaluable. I would also like to appreciate our network of partners and our valued customers for embarking on this journey with us, I have no doubt it will be a successful and enduring relationship.

Looking to a promising future

Throughout our journey, of over a quarter of a century, we have taken advantage of timely opportunities when implementing strategic initiatives. As a result, we have maintained our market position as the best-in-class ICT service provider in the Kingdom. As we look to the future, our goal is to strengthen our position locally while extending our reach to the region: as the leading digital solutions innovator and provider of end-to-end ICT services.

In the long-term we aim to continue diversifying our portfolio to attract a wider customer-base as we enter new markets and business lines at a global level. Through our ambitious growth strategy, we aim to continuously achieve strong profitability, advance our operational expertise, and maintain our leadership role in the ICT sector.

Eng Omer Alnomany
Chief Executive Officer