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Saudi PIF Raises $1 Billion from 2% STC Stake Sale

The Saudi Telecom Company (STC) pavilion at the LEAP 24 International Conference in Riyadh (Asharq Al-Awsat)
The Saudi Telecom Company (STC) pavilion at the LEAP 24 International Conference in Riyadh (Asharq Al-Awsat)
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Saudi PIF Raises $1 Billion from 2% STC Stake Sale

The Saudi Telecom Company (STC) pavilion at the LEAP 24 International Conference in Riyadh (Asharq Al-Awsat)
The Saudi Telecom Company (STC) pavilion at the LEAP 24 International Conference in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s Public Investment Fund (PIF) raised SAR 3.86 billion ($1.03 billion) by selling a 2% stake in Saudi Telecom Company (STC) through the region’s largest-ever accelerated bookbuilding process.

The sale of 100 million shares was priced at SAR 38.6 each, PIF said in a statement.

The offering saw strong demand from local and international institutional investors, exceeding the total shares on offer. A source told Reuters the sale was oversubscribed five times, with 40% of shares allocated to foreign investors.

PIF has retained a 62% stake in STC after selling 2% of its shares for $1.03 billion. The sale, managed by Goldman Sachs Saudi Arabia and SNB Capital, follows a 2021 sale of 6% of STC shares for $3.2 billion.

PIF said the transaction aligns with its strategy to recycle capital and invest in emerging sectors of the Saudi economy.

Experts say this move helps PIF monetize investments, attract foreign ownership, and reinvest in high-growth areas. It’s part of PIF’s goal to become the world’s third-largest sovereign wealth fund, managing over $1 trillion.

Thamer Al-Saeed of Rasana Financial noted the sale would not affect STC’s operations and highlighted the company’s stable dividends and strong market position, which continue to attract investors.

The sale is expected to boost STC’s appeal in Saudi and global indices, drawing more foreign and local investments.

Analyst Abdullah Al-Jubaili emphasized to Asharq Al-Awsat that it aligns with PIF’s efforts to attract international investors to key Saudi companies.

With current assets of $925 billion, PIF plans to expand by listing more companies, acquiring new businesses, and investing heavily in sectors like artificial intelligence.

These steps will support its mission to strengthen Saudi Arabia’s economy and its global position.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.