JEDDAH: Saudi Arabia’s largest telecommunications firm Saudi Telecom Company (STC) has bought a 10-percent stake in the ride-hailing app Careem, which is a Mideast competitor of Uber.
The state-owned communication firm announced Sunday in a stock exchange filing it bought the stake for $100 million. The investment is the latest high-profile Saudi venture since Riyadh in April announced its Vision 2030 plan to diversify the oil-dependent economy and broaden its investment base.
The STC said the purchase is “in line with the company strategy to invest in the innovative digital world.”
Dubai-based Careem, which began operations in July 2012, operates in 11 countries across the Middle East.
This is yet another big investment in ride-hailing apps for Saudi Arabia.
Uber announced in June that Saudi Arabia’s Public Investment Fund would inject $3.5 billion to help the app’s global expansion. Its rival Careem was founded in 2012 and has operations in 47 cities across the Middle East, North Africa, Turkey and Pakistan, STC said.
In July, Careem announced a new research and development (R&D) strategy and plans for global expansion.
Over the next five years, Careem will invest $100 million in research and development, which includes growing its team in the UAE and Pakistan, and opening new R&D centers in Egypt and Germany.
“Over the last few years, the region has witnessed a surge in technological innovation and has become home to rapidly growing technology startups,” said Magnus Olsson, co-founder and chief navigator, Careem.
“These startups are using technology to improve the lives of people in the region. Careem is committed to continue innovating to offer the region a safe and reliable transportation option. In order to do that, we have to double-down on research and development,” he added.
STC is the largest Arab telecommunications firm in terms of capitalization. It has more than 100 million customers in nine countries including Turkey, South Africa, India and Malaysia.
STC to buy 10% of Careem ride app
STC to buy 10% of Careem ride app
