Staying Ahead, Thinking Ahead, And Delivering What’s Next

Olayan M. Alwetaid, stc Group CEO, explains how the telecom giant is doing its part to shape the future as Saudi Arabia pursues a vision of opportunity, empowerment, and advanced technology.

How will stc’s emerging technology strategy enable Saudi Arabia’s digital transformation and its Vision 2030 reforms?

I’m truly proud of the work we are doing at stc, which has made us such a big part of the rapid transformation of Saudi Arabia. Vision 2030 at its core is a bold expression of the future of Saudi. The kingdom’s leadership is diversifying the economy away from oil dependence, growing other sectors, and opening up employment opportunities for young Saudis. In doing so, it is laying the foundation for the future. So much of this is dependent upon the digitization of industries, enterprises, public services, and consumer retail. To achieve this, the kingdom needs robust underlying technology infrastructure and welldeveloped digital services that are among the best in the world. Here, all technology-based sectors in Saudi have stepped up and are playing their part.

stc and other telecom companies are emerging as key enablers of digital economies and are essential to transforming industries, businesses, and lifestyles quickly. This shift in the economy, from being oil-dependent to being driven by digital transformation, is a strategic advantage for stc. I think the most important of these emerging technologies are 5G, IoT, cloud, AI, robotics, and data analytics. We are investing heavily in these areas and have plans to continue well into the future.

For example, our new fintech service stcpay, has become the Middle East’s latest unicorn, valued at $1.3 billion in November 2020. stcpay will help the government achieve its goal of a cashless society as it modernizes the economy. It has been so successful we’re already looking to roll out the service in other countries, including Bahrain, Kuwait, and the U.A.E.

Our customers are enjoying using digital technology more than ever before thanks to huge technology advances. We are providing products and services that enrich people’s lives.

Due to the pandemic, many aspects of business and education have been transformed to operate online. What did stc do to facilitate this in Saudi Arabia?

Saudi Arabia took intensive precautionary measures to combat COVID-19, which became a global pandemic in a short time. The kingdom’s efforts to control this pandemic were not limited to the local level, but also expanded to a global one.

The shift to remote working, online education, remote health services, and e-commerce exponentially increased traffic on our network. We faced challenges related to network capacity, quality of service, continuity of operations, and access to customer services.

While a lot of our success in coping with this increased traffic was due to our investment in hardware, I think the biggest reason we were successful—and why our customers were satisfied —was because of our investment in strategic programs. These programs helped us better serve our customers through digital channels.

Don’t forget, we too were affected by the pandemic. I am proud of the way we handled COVID-19. As a digital enabler we were able to react quickly and efficiently, ensuring that our customers received digital services at the level they needed them to be. We were ready for the sudden increase in demand thanks to our forward planning.

Demand for online education was up 1,000%, and demand for remote health services is up 177%. This, plus the drastic rise in e-commerce, exponentially increased traffic on our network infrastructure. This meant challenges related to network capacity, quality of service, remote operations, and the need to provide customer services and customer care via digital channels. stc provided access to education and health platforms to customers for free during this difficult period.

“Our new fintech service, stcpay, has become the Middle East’s latest unicorn, valued at $1.3 billion in November 2020.”

“We are proud to be among the top 44 digital companies in the world and the most powerful telecommunications company in the Middle East.”

stc provides many different services beyond telecom. Can you tell us more about these services and how they support your overall goal of being a leader in digital transformation? stc redefined itself in 2017 through its “dare” strategy. The company doesn’t see itself as a telecom operator but as a digital enabler providing digital services in various verticals. It’s been great to see how our customers have received our ventures into other areas. The two main launches have been stcpay and stcplay.

stcpay is a digital wallet, which not only is of great convenience to our customers but is also inline with the Vision 2030 goal of reducing cash transactions. The launch was a real milestone for our company and I was delighted with the way in which it was developed and delivered to our customers. stcpay achieved unicorn status and Western Union is now a shareholder with a 15% stake in the business, taking its total valuation over $1 billion. The deal also means that our users can send money to over 200 countries around the world.

stcplay is our dedicated e-sports and gaming platform. Here, both professional gamers and casual players can compete in tournaments, interact with other players, keep an eye on the leaderboards, and generally find all the latest news and goings on in the gaming world. Gaming and e-sport is one sector that continues to grow and grow so we’re delighted to be a part of it, and in fact we’re playing a huge role in transforming the Middle East’s gaming industry by connecting gaming service providers with gamers to ensure they have the best possible gaming experience. Our vision is to lead the gaming community in MENA. I think stcplay is well on the way to delivering that.

Cybersecurity is a challenge for telecom companies across the world. What is your approach to ensuring a transparent and safe digital environment? stc has made large investments in technology and talent within its data privacy and cybersecurity businesses. The key focus is to clearly understand the threats and risks faced by all our stakeholders and customer demographics, from confidentiality, integrity, availability, privacy, security, and resilience perspectives. Every customer and stakeholder group faces a specific set of unique cybersecurity threats, and risks.

Our cybersecurity teams work diligently to identify these threats, risks, and vulnerabilities. They use cutting edge 24/7 cyber defense monitoring, vulnerability and penetration testing, and threat hunting, as well as governance, risk, and compliance practices, involving the support of specialist teams.

Earlier this year, stc launched its cybersecurity arm, SIRAR. This will help secure businesses against threats and will be particularly useful as demand grows for digital services. Many businesses have

turned to digital services following the pandemic. A cybersecurity company can offer a wide range of solutions that defend against attacks and detect vulnerabilities before they become a threat.

stc was recently named one of the most influential brands in Saudi Arabia. How did stc achieve this success, and how does this reflect your business strategy?

We are proud to be among the top 44 digital companies in the world and the most powerful telecommunications company in the Middle East. The best way to understand how we became one of the most influential brands in Saudi Arabia is to look to the essence of who we are. Our vision is to provide innovative services and platforms to our customers while enabling the digital transformation of Saudi Arabia and the markets we operate in.

stc’s ambition to help facilitate the kingdom’s digital transformation program also motivated us to transform ourselves from a telecommunications provider to an advanced digital player. Today, we have many success stories in digital transformation, application programing interface (API) management, big data, cloud services and cybersecurity. We are positioned to collaborate with the government and the private sector to successfully achieve the three key pillars of Vision 2030: a vibrant society, a thriving economy, and an ambitious nation.

Though our continued efforts to improve digital connectivity in Saudi Arabia and help the country achieve Vision 2030, stc has no plans to slow down when it comes to providing advancements in digital technology. We feel we have a key role to play in the success of the future of the countries we operate in by providing services that can help businesses and individuals thrive in the coming years.

What opportunities are there to empower women in Saudi Arabia through communication technologies?

Women’s empowerment has become an essential part of our strategy. There are many ways that we have translated those words into tangible results. For example, during the last five years, we’ve been taking bold steps toward attracting and recruiting more women in all subsidiaries and all levels across the stc group.

Today, we have more than 3,000 female employees, representing 22.6% of the group’s workforce, and we have established an stc women’s council. We are also working hard to ensure that our female employees are getting the training they need to become our future leaders and future specialists in different critical fields like cloud computing, cybersecurity, and infrastructure. We believe in the importance of investing in our employees and giving them the best opportunities to develop their skills and knowledge.

“We are also working hard to ensure that our female employees are getting the training they need to become our future leaders.”

What are stc’s future plans in terms of rolling out 5G in Saudi Arabia? We plan to ensure that everyone in Saudi has access to 5G connectivity, no matter where they are located in the kingdom. Our technology will be among the most advanced in the world. Currently, stc has over 6,000 5G sites across 75 cities in the kingdom, giving us the widest 5G coverage in Saudi Arabia—equal to 37% of the population coverage. We are planning to invest even further in 5G in order to expand the network’s capability to handle future traffic demands. We are very excited about the future; we know we are going to deliver results for our customers that they have not seen before.

The world has changed in a very short space of time, with the global pandemic altering the way we think, behave, and interact. We are now living in a transitional phase that has seen digital demand increase heavily. Restrictions around the world have meant that now, more than ever, people are relying on technology in their everyday lives. Thanks to lockdowns and social distancing, demand for mobile and internet gaming has risen considerably, and online streaming services have surged, which means that we have to be ready to meet the needs and demands of our customers. We are preparing for a digital future where internet speeds will need to be faster and more reliable.

At stc, we have been busy changing the face of the Middle East, turning it into one of the leading digital hubs by pioneering the digital transformation of the region. 5G will be crucial to Saudi achieving its Vision 2030 goals. We plan to make 5G accessible to previously remote and rural areas that have never before seen the types of internet speeds we can offer. We have a vital role in improving the future of Saudi, and we take that responsibility very seriously.

We have recently opened our Digital Operations Control Center, which is the largest in MENA and can accommodate up to 2,300 employees. The facility includes a highly advanced system made up of various digital processes, such as simulation, digital infrastructure management, digital crises management, and reinvention within a range of digital solutions. It lays the foundation for stc to become a regional hub, offering unparalleled digital services while operating the biggest international gateways in MENA. The facility has the latest protection and distribution systems, used for the first time in the region. These systems secure the company’s service system and the data transmission and voice circuits system for all customers. It will be a vital space in years to come.

We have also launched three mega data centers in Riyadh, Jeddah, and Al-Madina, funded with a $266.6 million investment. The facilities include over 150 prefabricated modules fully equipped with power, thermal management, and IT infrastructure. They provide 10.8 MW of critical IT power (white space ready) expandable to 16.8 MW. Phase 1 of the project is complete with new data centers in Jeddah and Madinah already online. Phase 2, which is already under construction, will deliver four additional data centers in strategic locations throughout the kingdom, bringing the total critical IT power to 40.8 MW. These are huge steps, which not only give us great confidence in what we’re doing but also show customers and shareholders that stc is en route to becoming an even bigger player in the digital communications sphere than it already is.

How are both consumers and businesses adopting 5G technology? What are its benefits, and how can businesses leverage 5G deployment?

We already have over a million people using 5G in Saudi so we know it has been well received by our customers. So far we have seen 160% growth in 5G traffic—it made up 10% of our overall mobile traffic in Q1 2021. People are experiencing digital connectivity like never before. For example, people are using our fintech platform, stcpay, to make transactions from their digital wallets instead of using cash, and gamers are using stcplay to play and interact with incredible connectivity.

5G has also enabled us to partner with businesses like Dizmo, with whom we are going to be launching a new smart home platform in the future city of Neom. This new metropolis will be filled with digital science powered by renewable energy on a scale unlike any other city in the world. It’s thanks to 5G that the city is able to put such ambitious plans in place, which will change the face of digital. A partnership between Dizmo and Fitbit will enable a real-time digital relationship, with doctors ensuring the person’s health is constantly monitored.

5G technology is not just good for gaming and entertainment. Sectors such as agriculture, manufacturing, and logistics will all benefit from 5G as well as businesses, schools, and homes. Working from home could become the norm. Homeschooling will be more successful with no lags in video calls. Augmented and virtual reality will also offer new solutions.

We are working on 5G use cases. For example, for one customer we have a Secure 5G Campus Network that provides ultra fast, low latency, and secure connectivity to its employees. We are developing hologrambased video communication and conferencing solutions. We have developed our IoT platform to accelerate the fourth industrial revolution in industry. And we are providing infrastructure to serve the communication needs of pilgrims during Hajj, helping authorities with crowd movement analysis and management.

We know that the world is always changing, and we’re delighted to be playing such an important role in shaping the future of Saudi Arabia and the wider MENA region.

“We have recently opened our Digital Operations Control Center, which is the largest in MENA and can accommodate up to 2,300 employees.”

With such rapid expansion, how are you ensuring that stc is providing digital solutions sustainably?

We are committed to providing a service that is as environmentally friendly as possible, which is why we integrate sustainable practices into every aspect of our business. As a large digital provider, we have a duty to our country and to our customers to ensure we are operating in a sustainable manner.

We have a sustainability framework, which focuses on seven key areas: doing business with integrity; enhancing economic impacts; enriching people’s lives and experiences; expanding access to technology and connectivity; advancing innovative digital opportunities; empowering our people; and caring for the environment.

We are executing our strategy over the course of three years by elevating the regional standards of transparency. It’s important for us to build on the trust of our current and potential customers so that we can continue to thrive.

We want to ensure we are the leading company when it comes to sustainability and performance. Saudi’s economy will only continue to thrive, with the support of our telecoms and digital infrastructure, so we’re all too aware that we need to be responsible in our economic activities.

The company has achieved so much in a short space of time. What other goals has stc set itself? Our journey has only just begun and, while we have grown rapidly, this is just the start of our story.

Of course, we are committed to providing for our customers, and that is an important aspect of our immediate future. We continue to protect our customers and provide them with first-class digital services that are simple and easy to use yet offer an experience like no other.

“Our journey has only just begun and, while we have grown rapidly, this is just the start of our story.”

We are also committed to promoting the responsible use of technology. We have a responsibility to ensure our customers are using our services sensibly and responsibly.

One thing we are very keen on is being able to provide optimal digital services to everyone at affordable prices. We believe the future is extremely bright in Saudi, and we want to contribute to that future by ensuring people can access technology from anywhere in the country, and that there are packages and offerings for all.

We want stc to be recognized throughout the region, not only as a highly successful enabler but also as the number one digital platform for services such as online learning, governmental activity, and energysaving solutions.

Internally stc is dedicated to providing an excellent working environment for our staff, which enables them to work as efficiently as possible while maintaining high levels of employee satisfaction. Our company has faith in its people, and we have invested heavily in our workforce to ensure they are highly skilled and among the best in the industry. We also have a heavy emphasis on gender equality and ensure our workforce is equally split between male and female staff.

stc has a sustainable framework for its business. Can you elaborate on how this framework is applied and what other measures the company takes internally to do its bit for the environment? Sustainability considerations are part of our decision-making across the entire organization. In developing the sustainability framework, we took account of the interests of our key stakeholders, national and regional strategic visions, and the UN Sustainable Development Goals. We use the framework to improve our operations and performance.

In 2020, we also established a sustainability management committee, which informs the board about sustainability issues and helps demonstrate a corporate commitment to sustainability at the highest level. It monitors environmental, social, and governance (ESG) risks and opportunities and oversees stc’s conduct and corporate reputation.

What can you tell us about stc’s involvement in the new smart city of Neom?

Neom is one of the most exciting projects that Saudi has underway. We are delighted to be involved in such an incredible project. It will rely heavily on smart technology and will be one of the most advanced cities in the world. In terms of stc’s involvement, we will be developing the infrastructure that provides Neom with the technologies it needs. Crucially, this includes the implementation of our 5G network. The city will be fully connected with technology, including IoT, data analytics, virtual reality, augmented reality, smart homes, and autonomous vehicles, along with Neom’s security services.

What is stc doing to develop the next generation of digital pioneers?

Saudi Arabia has one of the world’s youngest populations, with many people interested in the digital sphere and keen to learn and be part of the digital revolution happening throughout the kingdom. If we want to be one of the world’s leading digital hubs for generations to come, we have to nurture and develop the next wave of digital specialists. At stc, we’re all about bringing through emerging talent, and we do that with the stc academy program, which has been in place since 2018.

We’ve seen over the last year just how quickly things can change and how we have to be ready to adapt, which is why we put a lot of emphasis on upskilling our staff. No economy can thrive without investment in people, and we believe that human talent will drive the digital revolution.

One way we encourage young people to think outside the box is through stc’s InspireU—a place for young entrepreneurs and startups to come for support so they can see their ideas become a reality. The program has helped 28 startups and created over 160,000 jobs so far.

stc’s strong relationships with leading universities in Saudi, along with highly respected international institutions, has also helped unearth talent and inspire young people. Furthermore, we offer an internship for those looking to get real-world experience in the field. Ultimately we believe in people, and we believe in building the next batch of digital groundbreakers, ready to become the leaders of Saudi’s future.