JEDDAH, 26 September 2006 — Saudi Telecom Co. (STC) yesterday announced plans to establish a limited joint stock company in association with the Technological Investment Co. and National Data Systems Co.
STC will have a 50 percent stake in the new Riyadh-based company, which will be involved in establishing and operating electronic markets and centers, holding auctions and conducting all types of commercial transactions. “STC’s board of directors has agreed that the company take 50 percent stake in the new firm,” Saud Al-Dowaish, president of STC said. As a result STC will be the main partner in the company, he added.
“Our company decided to participate in the new firm as part of its efforts to invest in various activities that are beneficial to all sectors and regions as well as Saudis and expatriates,” the Saudi Press Agency quoted Al-Dowaish as saying.
STC’s investment in the new trading company comes at a time when there is increased demand for electronic services in the local market and the Kingdom has decided to activate e-government by allocating SR3 billion for infrastructure facilities required for the program.
The e-government program aims at providing more than 1,000 services by 40 government departments. “This government move will increase demand for electronic solutions,” he said, adding that the new company would play a leading role in facilitating electronic services.