Telecommunications Firms in Saudi Arabia Report Strong Q2 2025 Performance, Profits Surge by 17%
The telecom sector in Saudi Arabia is currently robust and rapidly evolving, driven by strong operational efficiency, significant government support, strategic investment diversification, growing digital demand, and accelerated 5G deployment.
Operational Efficiency
Major telecom companies such as Saudi Telecom Company (stc) and Mobily reported profit growth of 13-25% in the first half of 2025. Disciplined cost management and operational improvements have been key drivers. stc alone contributed about 80% of total sector profits with reduced revenue costs and increased operating income by Q2 2025.
Government Support
The Saudi government's push for digital transformation and investments in innovation will further boost companies' earnings in coming quarters. Aligned with Saudi Vision 2030, the initiative strongly backs 5G rollout, smart city projects, and IoT development, fostering a thriving ecosystem for telecom growth. Public-private partnerships and investments underpin the rapid expansion of telecom infrastructure.
Investment Diversification
Telecom giants like stc and Mobily are diversifying their investments. Mobily emphasises infrastructure capital expenditure, while stc focuses on fintech integration and advanced 5G standalone technologies. Both companies pursue ESG goals, aligning with Saudi Arabia’s net-zero targets.
Digital Demand
Digital demand in Saudi Arabia is surging, fuelled by increased consumption of high-speed mobile internet, streaming services, IoT applications, and automation across healthcare, automotive, and other industries. The telecom sector's broad service offerings cater to both consumers and enterprises.
Impact of 5G
The impact of 5G is transformative. Saudi Arabia aims to become a regional leader in 5G adoption, with key urban centers like Riyadh and Jeddah rapidly expanding 5G networks. Enhanced 5G capabilities improve mobile internet speeds, enable advanced IoT, and facilitate smart city developments.
Market Growth
The overall telecom market is projected to grow from about USD 27 billion in 2025 to USD 37 billion by 2030, highlighting robust sector expansion within the digital economy. The broader ICT market, encompassing telecom, reached about USD 44.7 billion in 2024 and is expected to grow at a 9.1% CAGR through 2034, hitting approximately USD 107 billion.
Company Performance
In Q2 2025, stc led in profitability, contributing around 80 percent of total profits with a 15.7 percent year-on-year increase in net income to SAR3.82 billion. Zain KSA ranked second in profit growth with a 21 percent rise in net income to SAR127 million. Mobily recorded the highest profit growth rate in the sector with a 25.6 percent increase in net income to SAR830 million.
The future outlook for the Saudi telecom sector is highly positive, with expected continued growth and innovation. The sector's positive momentum is supported by Saudi Arabia's Vision 2030, with telecom companies playing a central role in major digital transformation projects such as NEOM and Qiddiya.
Read also:
- Stock markets in Asia experience a surge following a record-breaking rally in U.S. stocks, fueled by optimism towards potential interest rate reductions.
- App Store Faces Threat of Lawsuit from Elon Musk over Accusations of Unfair AI Preference
- Strategies for Adhering to KYC/AML Regulations in India, a Leading Fintech Center (2024)
- Zigbee and LoRa Low-Power Internet of Things (IoT) Network Protocols: The Revolution in Data Transmission and Networking
