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STC Agrees with Ericsson, Huawei, Nokia to Deploy 5G Network

STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
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STC Agrees with Ericsson, Huawei, Nokia to Deploy 5G Network

STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)
STC CEO Nasser al-Nasser and KT(Korea Telecom) representative (STC)

Saudi Telecom Company (STC) signed three major deals to deploy 5G network in Saudi Arabia and develop services with Nokia, Huawei, and Ericsson at the Mobile World Congress in Barcelona.

Nokia's equipment, software and services will be used to set up a 5G network first in the western and southern part of Saudi Arabia as part of STC’s strategy in conjunction with Vision 2030 and National Transformation Plan (NTP) 2020. The rollout phase is already ongoing and is expected to be completed by end of 2020.

STC subscribers will have access to ultra-high bandwidth and low latency services, as well as new applications in areas such as virtual reality, augmented reality and artificial intelligence.

STC will modernize its existing LTE network through latest technologies such as PS (Packet Switch) core, Massive MIMO, 15-band antenna and multi-band technology.

STC CEO Nasser al-Nasser said: "We are excited to work with Nokia on the Aspiration project which will help us realize our dream to be the first one to launch 5G services in the region.”

He explained that once completed, the subscribers will be able to enjoy innovative high bandwidth consuming use cases, adding that the project underscores STC’s support and commitment to NTP 2020 and Vision 2030 to drive Saudi Arabia's digital transformation into a knowledge economy.

“The leadership of our longstanding partner, Nokia, in the development of 5G is crucial for our launch of 5G services.”

“The agreements will contribute to enhancing the company's products and services, and expanding its market share in the ICT market,” said Senior VP of Technology and Operations Unit Haitham al-Faraj.

Procurement and Support Services Sector VP Emad al-Aoudah also indicated that STC has signed multiple Rawafed Local Content agreements under its 5G Aspiration Project with strategic partners.

Earlier, STC signed a Memorandum of Understanding (MoU) with KT (Korea Telecom) at the Mobile World Congress 2019 to collaborate on new technology areas.

As a leading telecommunication company in Korea, KT will cooperate with STC in various business areas and the two will generate and maximize the synergy effect by combining KT’s state-of-the-art ICT technologies such as 5G network, GiGA Wire, GiGAeyes, VR and STC’s Group business expertise and strong influence in MENA region.

Nasser said the collaboration is a great opportunity for STC and introduce KT’s field proven solutions to Saudi Arabia.

“I am hoping our successful cooperation models could expand to STC’s foreign subsidiaries and other MENA countries.”

Meanwhile, STC launched the first internal network for 5G at King Fahd University of Petroleum and Minerals (KFUPM), at the presence of the dean Dr. Sahl Abd al-Jawad.

The network, launched experimentally in the university at its headquarters in Dhahran, is the first of its kind in the Kingdom and the region. Infrastructure VP Khaled al-Darab said that 5G will help the university build a strategic partnership with the company to develop new services and innovations.

“The company has achieved high speeds of up to 1.3gb/s during site test trials, and the site will be operational in the second quarter of this year.”

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World Bank Expects GCC Economic Growth to Rise to 3.2%

The Saudi capital Riyadh. AFP file photo
The Saudi capital Riyadh. AFP file photo
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World Bank Expects GCC Economic Growth to Rise to 3.2%

The Saudi capital Riyadh. AFP file photo
The Saudi capital Riyadh. AFP file photo

Gulf Cooperation Council (GCC) economies showed resilience in navigating global uncertainties while advancing economic diversification in non-oil sectors, the World Bank said on Thursday, projecting economic growth across the Council to increase in the medium-term to 3.2% in 2025 and 4.5% next year.

The World Bank's growth forecast for this year is lower than its previous forecast of 4.2% in December, while the forecast for next year has been raised from 4.2% to 4.5%.

According to the latest edition of the Gulf Economic Update (GEU), regional growth was 1.7% in 2024, an improvement from 0.3% in 2023.

In its report titled “Smart Spending, Stronger Outcomes: Fiscal Policy for a Thriving GCC,” the World Bank said that while global energy markets continue to play a significant role across the GCC, sustained diversification efforts are fostering a more balanced and resilient growth model.

“The resilience of GCC countries in navigating global uncertainties while advancing economic diversification underscores their strong commitment to long-term prosperity,” said Safaa El Tayeb El-Kogali, Division Director for the GCC countries at the World Bank.

“Strategic fiscal policies, targeted investments, and a strong focus on innovation, entrepreneurship, and job creation for youth are essential to sustaining growth and stability,” she added.

According to the report, the non-hydrocarbon sector remained resilient, expanding by 3.7%, largely fueled by private consumption, investment, and structural reforms across the GCC.

It said in 2024, GCC economies faced a contraction of the oil sector of 3.0% linked to OPEC+ production cuts, which were aimed at the stabilization of global energy prices.

Overall regional growth nonetheless strengthened to 1.8%, driven by a resilient expansion of the non-hydrocarbon sector by 3.9%.

This expansion, the Bank said, has been driven by Bahrain, Oman, Qatar, Saudi Arabia, and the UAE.

On aggregate, 50% of the non-hydrocarbon expansion can be attributed to private consumption, with the other half being driven by government consumption and fixed investment.

In Saudi Arabia, the report said Vision 2030 continues to drive diversification; the share of non-oil sectors in GDP grew from 45.4% to 54.8% since its adoption.

It added that non-oil sector growth is forecast to remain at 4.97% in the medium term.
Meanwhile, the bank said global trade uncertainty can be a risk for diversification efforts across the GCC. Its impact could materialize through the supply of externally sourced materials and the demand for exported hydrocarbons.

On the global demand side, trade uncertainty and tariffs can induce a global economic slowdown, hampering global demand for hydrocarbons, which remain among the main export goods for the GCC. Again, impacts on Chinese business and consumer dynamism could have particularly pronounced effects for the GCC due to their strong trade linkages.

At the same time, this uncertainty can also be an opportunity to accelerate structural reforms in the GCC.

In the report, the Bank said headline inflation across the GCC remains low, despite interest rate cuts in 2024.

GCC headline inflation rates averaged 2.0% in 2024, showing a further decline from an average of 2.2% in 2023.

In a change to previous years, 2024 saw interest rate cuts across the GCC countries, in line with decisions by the US Federal Reserve, given the exchange rate pegs.

Therefore, the Bank report discusses the effectiveness of fiscal policy in ensuring macroeconomic stabilization and encouraging growth.

The topic is particularly relevant as oil price fluctuations strain budget balances in several countries across the region.

Some GCC countries, the Bank said, are projected to experience increasing fiscal deficits in 2025, emphasizing the need for understanding the effectiveness of fiscal policy.

The report finds that government spending in the GCC region has effectively stabilized economies, especially during recessionary episodes.

The findings show that a 1-unit increase in fiscal spending can boost non-hydrocarbon output by 0.1-0.45 units in the region.

The report also finds a marginal impact of government investment on non-hydrocarbon output – a 0.07% change in potential output for a one-time percentage point increase in investment.

The report also showcases Oman’s fiscal consolidation journey as a noteworthy example of effective economic reform and responsible fiscal management.

It highlights the challenges Oman has faced due to oil dependency, the measures it implemented to restore fiscal balance, and the encouraging outcomes of these reforms.

Under its Medium-Term Fiscal Plan 2020-2024, Oman introduced wide-ranging reforms to diversify revenue sources, improve expenditure efficiency, and prudently managing hydrocarbon windfalls.

Oman’s reforms have yielded tangible results since 2022, with a marked improvement in its fiscal position and a significant reduction in public debt.