Saudi Arabian telecoms giant Saudi Telecom Company (STC) announced the establishment of STV, a technology venture capital fund that aims to achieve its strategic growth aspirations and to help realize Vision 2030's technological ambitions by investing in new digital areas and by growing the digital innovation ecosystem in the region.
STC believes the Middle East is witnessing a digital transformation that is full of opportunities in the digital economy and digital industries, and that the future involves drastic changes that will disrupt businesses across sectors.
The company has intentions to be a serious world-class player in the space and today STV has been approved with a size of $500 million, making it the largest institutional technology venture capital fund in the Middle East.
STC will have complete independence and will deploy independent governance and operational models that are designed in accordance with international best practices allowing it to leverage STC's assets to enable its investments and the surrounding ecosystem to grow and scale. STC will be managed by a leading team of top regional and international talent in this field.
"We are very proud of this historic step by STC, which will be a pivotal turning point for the region's technology ecosystem," said Dr. Khaled Biyari, Chief Executive Officer of STC. "Global telecoms have two choices - to either change and evolve into digital companies or to convert into a utility. We have elected to go down the first route. STC has the potential, resources and strategic assets to make a quantum leap in the technology and entrepreneurial sectors it is working on transforming," Biyari added.
"We believe the region can create its own future and we will invest in the next generation growth engines that will make this happen," said Abdulrahman Tarabzouni, Chief Executive Officer of STC. "The centers of gravity for growth and value across the world's economies and industries will undergo profound transformations due to technology disruptions, and we believe STC will create value for STC and the region amidst these transformations."