The data from November 2025 confirms a structural shift in the Saudi Arabian economy. Riyadh has successfully decoupled its digital growth from the volatility of Brent crude. As of November 24, 2025, the narrative of a conceptual transition has been replaced by hard financial metrics. The Kingdom’s digital economy now commands a 16% share of the national GDP, driven by aggressive capital expenditure and a supportive monetary environment. This is not a vision. It is a balance sheet reality.
STC Q3 2025 Performance Beats Analyst Estimates
On November 3, 2025, Saudi Telecom Company (stc) released its Q3 interim financials, revealing a net profit of SAR 4.10 billion. While this represented an 11.5% year-on-year decline due to the absence of non-recurring gains from the previous year, the figure significantly outperformed market expectations of SAR 3.49 billion. Revenue for the quarter reached SAR 19.26 billion, a 3.6% increase from 2024. For the first nine months of 2025, stc recorded historically high revenues of SAR 57.92 billion.
The operational growth is concentrated in high-margin segments. The carrier and wholesale unit saw a 17.5% revenue jump, while the business unit grew by 5.3%. This expansion is fueled by the group’s subsidiary, center3, which recently unveiled a SAR 37.50 billion investment plan to scale data center capacity. For income-focused investors, stc confirmed a cash dividend of SAR 0.55 per share for Q3, with distribution scheduled for November 26, 2025.
SAMA Repo Rate Pivot and Liquidity Injection
The Saudi Central Bank (SAMA) has transitioned to a more accommodative stance to maintain the momentum of non-oil growth. On October 29, 2025, SAMA matched the Federal Reserve with a 25-basis point cut to the repo rate, bringing it to 4.5%. This move is critical for the capital-intensive ICT sector, where debt-servicing costs directly impact the bottom line for giga-projects.
Inflation control remains the secondary pillar of this stability. Per the October 2025 CPI report, Saudi inflation cooled to 1.9%, providing SAMA with sufficient headroom to prioritize liquidity. Money supply (M3) grew by 6.6% in November, ensuring that the private sector has the credit availability required for the upcoming 2026 infrastructure cycles.
Key Macroeconomic and Digital Indicators as of Nov 2025
| Metric | Current Value (Nov 2025) | Year-on-Year Trend |
|---|---|---|
| SAMA Repo Rate | 4.50% | Decreasing (from 5.25%) |
| Inflation Rate (CPI) | 1.9% | Stable |
| Digital Economy GDP Share | 16.0% | Increasing (from 15.6%) |
| 5G Urban Penetration | 60.78% | Up from 49.95% |
The 9,420 Tower Moat
Connectivity is the physical foundation of this digital arbitrage. As of Q3 2025, stc has deployed 9,420 5G towers, up from 8,830 a year prior. This infrastructure allows for urban 5G coverage exceeding 60%, ranking Saudi Arabia third globally for 5G download speeds, trailing only South Korea and Brazil. The Communication, Space and Technology Commission (CST) has proactively reallocated 1,400 MHz of licensed spectrum, creating a competitive moat that prevents market entry from lower-capitalized entities.
Amir AlGhamdi and the stc leadership have pivoted toward “Business-Critical Networks.” This includes private wireless communication for industrial zones, leveraging AI and edge computing. The objective is to move beyond consumer data and capture the enterprise value of the SAR 1.20 billion Red Sea Global digital infrastructure deal. By integrating connectivity directly into tourism and logistics giga-projects, the Kingdom ensures that digital growth is baked into the physical development of the country.
Looking toward early 2026, the market is awaiting the next phase of the CST spectrum auction, specifically in the 6 GHz band. This milestone will likely determine the feasibility of widespread 5G-Advanced and early-stage 6G trials. Investors should monitor the SAMA Repo Rate decision on December 10, 2025, as a further 25-basis point cut is currently priced in by 72% of market participants.
