Riyadh, Saudi Arabia — Solutions by STC has renewed its bank facility agreement with Saudi National Bank (SNB), securing SAR 1.5 billion in Sharia-compliant funding. The solutions offered by the STC bank facility include SAR 1 billion in short-term credit and SAR 500 million in medium-term financing. These funds will support working capital, bank guarantees, and the ongoing acquisition of Giza Systems.

Short-Term Funding to Support Working Capital and Guarantees

The SAR 1 billion short-term portion will fund Letters of Credit, guarantees, and daily operational needs. This gives the company the liquidity to fulfill contracts and manage short-term obligations. As a result, Solutions by STC can maintain financial flexibility in Saudi Arabia’s competitive telecom sector.

Medium-Term Loan Linked to Giza Systems Acquisition

The SAR 500 million medium-term loan, originally issued in June 2022 with a five-year term, continues to support the Giza Systems acquisition. Backed by a promissory note, it reflects STC’s strategic expansion into digital infrastructure and regional markets.

Sharia-Compliant Finance for Saudi Telecom Growth

The Solutions by STC bank facility illustrates how Islamic finance can fund technology-led growth. Its dual structure balances short-term liquidity with longer-term investment needs. Moreover, it supports Vision 2030’s goal to build sustainable and digitally advanced industries.

 

 

THE SAUDI STANDARD’S VIEW: STC Subsidiary Facility Renewal Reinforces Confidence in Telecom Growth and Islamic Finance

Solutions by STC’s renewal of the SAR 1.5 billion Sharia-compliant facility with SNB highlights strong digital infrastructure and strategic finance momentum. This agreement supports operational liquidity and the acquisition of Giza Systems—demonstrating Saudi Arabia’s ability to scale the tech sector with modern financial tools.

  • The use of Sharia-compliant structures supports Saudi Arabia’s dual financial strategy. It combines Islamic finance with investments in next-generation sectors.
  • The SAR 1 billion short-term facility for guarantees and working capital reflects rising demand for telecom projects and smart infrastructure.
  • The SAR 500 million medium-term loan linked to Giza Systems showcases strategic, disciplined growth through acquisitions, strengthening STC’s regional presence in digital services.
  • SNB’s continued support for Solutions by STC reflects lender confidence in telecom as a key Vision 2030 industry. Public and private digital projects continue to grow rapidly.

This renewal is more than a funding arrangement—it signals Saudi Arabia’s financial maturity and commitment to future-ready sectors. The Solutions by STC bank facility shows how local champions are advancing with financing models that blend tradition and innovation.

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