In the Name of Allah, the Most Gracious, the Most Merciful
Dear stc Shareholders,
Peace be upon you and Allah's mercy and blessings,
The year 2020 was absolutely exceptional, especially as the Company achieved the highest annual revenues compared to the previous eight years, an achievement attained, thanks to the efforts of the wonderful stc team during the interaction with the increase in demand for the Company's various services and the ability to meet customer requirements quickly and effectively, especially during the Corona pandemic. This contributed to achieving remarkable success in business sustainability in various vital sectors, in addition to the success of the Company's strategic direction to be a leading regional center for digital services through innovative projects and global partnerships. During this year, three huge data centers were simultaneously launched in Riyadh, Jeddah, and Medina, with the aim of enabling the digital transformation of the government and private sectors and strengthening the cloud infrastructure for the local digital economy in the fields of Artificial Intelligence (AI) , Internet of Things (IoT), and cloud computing, in addition to having signed a non-binding Memorandum of Understanding (MoU) of USD 500 million to invest in cloud services with Alibaba Cloud, the digital technology and artificial intelligence arm of the Alibaba Group.
The same year also witnessed the Company's launch of its first sustainability report in order to enhance its strategic role as an enabler of digital transformation in the Kingdom and the region to maximize its positive effects economically, socially, and environmentally, as a commitment to adopting best responsible practices and raising standards in the communications and information technology sector. The report contained significant numbers in the field of sustainability, including fiber optics reaching more than 3 million homes, in addition to innovative digital solutions such as launching stcpay, the largest digital wallet in the region, and providing 100% of the Company's services through a digital platform, mystc application.
Moreover, the report included supporting Saudi entrepreneurs through the InspireU program, as the Company incubated 28 emerging companies to support innovation in digital information and communication technology, and contributed to creating about 160,000 permanent and partial job opportunities. Meanwhile, the market value of the projects supported by the incubator amounted to about SAR 300 million, in parallel with our commitment to promoting local content through the Company's “Rawafed” program, whose contribution to raising local content amounted to more than SAR 12 billion during the past years.
The Company continued its leadership during the year 2020 and achieved the highest credit rating by SIMA Rating Agency, represented by "AAA" in the long term and "T1" in the short term. It also ranked first among telecom companies and ranked fifth at the level of all companies listed in the stock market, according to Forbes magazine of companies operating in the Middle East and North Africa (MENA region), in addition to being selected as the most effective brand according to the "MENA Ivy" rating. Undoubtedly, these distinguished positions came as a result of the Company’s continuous growth during the past years and its commitment to its values and strategy, and the innovative solutions and services it provides.
The Company won two Speedtest Awards as the fastest and best mobile network coverage in the Kingdom. Moreover, the Company won the Best Customer Experience Program for 2020 (mystc) application after competing with major telecom companies in the world. For the fourth year in a row, the Company won the award for the fastest internet on the mobile network, and the award for the best mobile coverage provided by a telecom company in the Kingdom, in addition to winning the award for the fastest mobile network for the fifth generation 5G, from (Ookla). The Company's winning of these awards for the world's most famous platform for measuring internet speeds is evidence of its commitment to providing the best services to its customers in the Kingdom, raising the efficiency of services to society, and providing an ideal customer experience with the Company, especially as it has doubled network capacities, as well as doubled delivery of services and products via the digital application..
As part of our journey to digital transformation and enriching customers' lives, seven (7) million contracts have been digitized annually and paper contracts have been dispensed with, which will contribute to saving 200,000 waiting hours of customer time per year. The Company has also sought to expand the infrastructure of communication towers by building new towers in the Kingdom and keeping pace with technological advances such as the fifth generation and the requirements of improving the network and increasing its speed. Also, the Saudi Digital Payments Company, stcpay, obtained the official license from the Saudi Arabian Monetary Agency (SAMA) as an electronic wallet in the field of fintech, to be the first licensed financial technology company in the Kingdom, as it is today the largest digital financial wallet in the MENA region.
In conclusion, we would like to thank you for your trust and support, and we assure you that the Group today is moving in steady steps to enhance its local and regional leadership and global reputation and to play its pivotal role as a pioneering digital enabler for transformation in the Kingdom in accordance with the goals of the Kingdom's Vision 2030.
Eng. Olayan Mohammed Alwetaid
Chief Executive Officer (CEO)