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STC CEO: Redesigning our Strategy, Shifting Away from Traditional Areas

STC CEO Dr. Khalid Bin Hussein al-Bayari. (Asharq Al-Awsat Arabic)
STC CEO Dr. Khalid Bin Hussein al-Bayari. (Asharq Al-Awsat Arabic)
    Dubai — Musaid al-Zayani
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STC CEO: Redesigning our Strategy, Shifting Away from Traditional Areas

STC CEO Dr. Khalid Bin Hussein al-Bayari. (Asharq Al-Awsat Arabic)
STC CEO Dr. Khalid Bin Hussein al-Bayari. (Asharq Al-Awsat Arabic)

Saudi Telecom Company (STC) has depended on a new strategy that focuses on growth via new areas and not the traditional telecommunications areas, said STC CEO Dr. Khalid al-Bayari, adding that this strategy includes the digital content, digital financial services and the information technology in addition to the limited geography.

Bayari stated that new investments will be centered in the region. “The whole point is that our investments meet with new services,” he said, clarifying that any company that doesn’t adopt the new conditions will face troubles.

On the sidelines of STC participation in GITEX, Bayari told Asharq Al-Awsat that “Our strategy is inspired from the Saudi Vision 2030.” He added that STC works on restructuring skills in which it intends to launch an academy that focuses on building new digital capabilities for the youths. “I think this will have a direct impact on the Saudi Vision 2030,” he noted.

“We have a venture investment fund that is the greatest venture fund in the region and it emphasizes on the new economy, especially that in our region we have a problem in funding the youths who present ideas and projects. I think the fund will fill a gap in this regard and help us find other resources and an additional income for the company” he added.

Further, the company is holding serious discussions to provide financial services through the mobiles.

Back to the strategy, Bayari said: “We deal with the challenges facing the traditional telecommunications sector but STC focused on a growth strategy, which is part of an acquisition of companies operating in specific fields.”

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Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)
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Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)

Business conditions in Saudi Arabia’s non-oil private sector improved notably in June, driven by a marked rise in customer demand and expanded production, according to the latest Riyad Bank Purchasing Managers’ Index (PMI) data.

New business volumes surged, fueling the fastest pace of employment growth since May 2011. This strong demand for workers pushed wage costs to record highs, adding pressure on overall expenses and contributing to a fresh increase in output prices.

The headline PMI climbed to 57.2 in June from 55.8 in May - its highest level in three months and slightly above the long-term average of 56.9. The reading signaled a robust improvement in the health of the non-oil private sector economy.

Companies reported another rise in new orders last month, with growth accelerating following a recent low in April. Many firms cited gaining new clients, alongside improved marketing efforts and stronger demand conditions. Domestic sales were the main driver of the increase, while export sales edged up slightly.

Purchasing Activity Expands

Production continued to expand through the end of Q2, although growth slowed to a 10-month low. Purchasing activity picked up sharply as companies sought to secure additional inputs to meet rising demand, with the pace of purchase growth reaching its fastest in two years.

Employment growth accelerated as businesses rapidly expanded their workforce to keep pace with incoming orders, pushing hiring to the highest level since mid-2011. This strong recruitment trend, which began early in 2025, was largely driven by a rising need for skilled workers, prompting companies to increase salary offers. Consequently, overall wage costs rose at the fastest rate since the PMI survey started in 2009.

Facing mounting cost pressures from higher raw material prices, firms raised their selling prices sharply in June , the biggest increase since late 2023, reversing declines recorded in two of the previous three months. This price hike largely reflected the passing of higher operating costs onto customers, although some companies opted for competitive pricing strategies by cutting prices.

Resilient Economic Outlook

Looking ahead, non-oil private sector firms remained confident about business activity over the next 12 months. Optimism hit a two-year high, supported by resilient domestic economic conditions, strong demand, and improved sales. Supply-side conditions also showed positive momentum, with another strong improvement in supplier performance.

Dr. Naif Alghaith, Chief Economist at Riyad Bank, said: “Future expectations among non-oil companies remain very positive. Business confidence reached its highest level in two years, underpinned by strong order inflows and improving local economic conditions.”

He added: “However, cost pressures became more pronounced in June, with wage growth hitting record levels as companies compete to retain talent. Purchasing prices also rose at the fastest pace since February, partly driven by increased demand and geopolitical risks. Despite these challenges, companies broadly raised selling prices to recover from May’s declines, reflecting an improved ability to pass higher costs onto customers.”