solutions by stc Signs SAR 484.7 Million Related-Party Contract With Parent stc

solutions by stc has signed a new contract worth SAR 484.7 million with Saudi Telecom Company (stc), its parent and controlling shareholder. Arabian Internet and Communications Services Company, which trades on Tadawul as solutions (7202), disclosed the agreement to the Saudi Exchange. Because stc holds roughly 79% of solutions, the deal is classified as a related-party transaction and required a market filing that spells out the relationship.

The contract is the latest in a steady stream of work solutions has booked with its parent through 2026. These agreements typically cover building and developing stc's internet and communications networks, its data centers, and cloud infrastructure. For solutions, this affiliated business is a recurring revenue line rather than a one-off win.

At SAR 484.7 million, the award clears the size threshold that makes a corporate contract material on its own, whatever the share price does on the day. Related-party deals like this draw closer scrutiny precisely because the terms are agreed between two connected companies, which is why Tadawul rules require the tie to be disclosed.

solutions by stc is the largest listed IT services company in the kingdom. It was carved out of the stc group and floated on Tadawul in 2022, with stc keeping the majority of the shares. The two continue to do significant business with each other, and contracts of this scale are a regular feature of that relationship.