Eng Al-Harbi resigns from stc Kuwait after leading it for five years
KUWAIT: Kuwait Telecommunications Company – stc, announced the resignation of Eng Maziad Al-Harbi from his position as CEO of the company, after five years of leading the executive management team at stc Kuwait. Al-Harbi submitted his resignation to the company’s board of directors during the board meeting held on Feb 15, 2024, where the resignation was officially accepted by the board and disclosed on Boursa Kuwait thereafter. It has also been announced that Eng Muataz Abdullah Al-Dharrab will take on the role of CEO.
In this regard, Dr Mahmoud Ahmad Abdulrahman, Chairman of the Company’s board, stated: “Al-Harbi played a key role since he led the executive management team at stc Kuwait in 2019. Under his guidance, the company transitioned from offering traditional telecom services to expanding into business solutions and digital services. This strategic shift was exemplified by successful acquisitions, including QualityNet in 2019 and e-Portal Holding Company in 2022, where Al-Harbi also served as chairman. Additionally, he oversaw the rebranding of “VIVA” to “stc,” aligning the company with a unified brand identity across Kuwait, Saudi Arabia, and Bahrain.”
stc achieved strong financial results under Al-Harbi’s tenure as CEO by leveraging the company’s technical and human capabilities to align with the objectives of the company’s customers and shareholders. As part of this strategy, stc expanded its business model and focused on delivering integrated digital solutions to businesses in various sectors, ultimately having one of the largest contributions to stc’s success. Since Al-Harbi took over, the company’s revenues increased by 22 percent despite the challenges and difficulties witnessed in Kuwait’s market. By end of 2023, stc achieved its highest revenues since establishment, with total revenues reaching KD 351.4 million.
The digital transformation strategy initiated and led by Al-Harbi has been an instrumental factor in stc’s success and contribution to the local economy, government initiatives, and the rising demand for digital and IT solutions. stc played a significant role in fostering relationships with investors and the investment community, upholding the highest standards of transparency and best global practices in shareholder communication.
This commitment was reflected in stc’s launch of 5G technology in 2019 for the first time in Kuwait, the Middle East, and North Africa. This move offered customers the latest experience in 5G networks with unprecedented speeds and wider coverage, aiming to enrich their experience and enhance their lifestyles.
The chairman further mentioned that in 2020, the global crisis caused by the COVID-19 pandemic forced a significant shift in service quality and business strategies across various sectors in Kuwait and worldwide. stc, under the leadership of Al-Harbi, managed to adeptly navigate these challenges. The Company formed a specialized task force and introduced new initiatives in response to the pandemic and governmental efforts to curb the spread of the virus. Additionally, stc took proactive steps to safeguard its financial health and the interests of its shareholders by effectively managing its cash flow and closely monitoring its collection processes. This was coupled with the implementation of a cost reduction strategy aimed at sustaining profit margins.
The chairman highlighted that under Al-Harbi’s stewardship, stc consistently reached new milestones by applying its foundational strategy and expanding its operations over recent years. The company achieved robust financial and operational results, demonstrating its dedication to bolstering its internal strengths, broadening its business framework, and enabling its digital transformation strategy. Leveraging its state-of-the-art network, stc offered a wide array of services catering to the varied needs of both individual and institutional customers. Furthermore, the specialized contributions of its subsidiaries in providing fixed connectivity and IT services, along with offering the business sector innovative comprehensive solutions, have established stc as a pioneer in enabling digital transformation in Kuwait. These efforts have led to a series of accomplishments, including the introduction of new-to-market concepts, and strengthening its position as a leading company, all of which were recognized with numerous prestigious awards across the region, applauding its initiatives and intelligent investments.
In the beginning of 2022, stc made headlines by deciding to distribute 100 percent bonus shares from the issued and paid-up capital. During the third quarter of 2022, stc’s revenue market share reached 39.8 percent leading the telecommunications sector in Kuwait for the first time since the company’s inception.
By end of 2022, the Municipal Council approved allocating stc a plot of land in Kuwait City to build its new headquarters. The decision came following extensive efforts from stc’s board and executive management, which was led by Al-Harbi. The move follows the company’s strategic vision to contribute to the growth and development of Kuwait, aligning with the national development plan inspired by Kuwait Vision 2035. stc has already begun drafting execution plans and coordinating with relevant authorities to build the headquarters, a step expected to significantly reduce current and future operating and administrative expenses, positively impacting the company’s business and stability. Another significant achievement during this period was receiving the approval from the Communication and Information Technology Regulatory Authority (CITRA) to launch the first-of-its-kind mobile virtual network operator (MNVO) license to launch Virgin Mobile Kuwait in partnership with Virgin Mobile Middle East & Africa. The license will permit Virgin Mobile Kuwait to operate using stc’s network, with stc acting as a Host Facilities Based Provider “FBP” with Virgin Mobile Kuwait, offering prepaid plans to users, and making it the first virtual telecom service in the country.
In 2024, stc was upgraded to the premier market in Boursa Kuwait, reflecting the company’s strategic direction over the past years. The strategy focused towards being a market leader by enhancing the investment community’s confidence in stc’s strong and flexible operational business model and corporate strategy. The upgrade also reflects stc’s robust financial position, ongoing compliance with the standards and regulations of Boursa Kuwait and the Capital Markets Authority, and the trust shareholders and investors have in the company’s stock.