Key Takeaways
- • STC Group achieved a 53% local content score in 2026, substantially exceeding the ICT sector benchmark of 41% established by Saudi Arabia's Local Content and Government Procurement Authority, demonstrating a 12-percentage-point performance advantage.
- • The company's local content expenditure has grown more than 43% relative to the ICT sector benchmark and increased over 10% compared to 2020, reflecting sustained investment in domestic procurement, workforce development, and supply chain localization.
- • Rawafed, STC Group's dedicated local content platform launched in 2018, serves as the operational mechanism for maximizing local spending, fostering innovation, attracting investments, and strengthening Saudi domestic capabilities across the telecom and ICT sectors.
- • STC Group's market capitalization exceeds $60 billion, positioning it as the most valuable telecom company in the Middle East and among the globally most valuable telecommunications operators, amplifying the economic significance of its local content commitment.
- • The five-year trajectory of increasing local content scores reflects deepening integration of local sourcing across operations and supply chains, aligning with Saudi Arabia's broader economic transformation and diversification objectives.
Summary
STC Group announced that its local content score reached 53% in 2026, substantially surpassing the 41% benchmark established for the information and communications technology (ICT) sector by Saudi Arabia's Local Content and Government Procurement Authority. The announcement, made during Saudi Arabia's National Day observance, underscores the telecommunications operator's ongoing commitment to generating economic value within the Kingdom through localized business practices.
The achievement reflects a 12-percentage-point spread above the sectoral benchmark and demonstrates STC Group's systematic approach to local content integration. The company's local content expenditure has increased by more than 43% relative to the ICT sector benchmark and by more than 10% compared to 2020 baseline levels, according to the authority's assessment. This sustained growth indicates accelerating rather than plateauing localization efforts across the organization's procurement, service delivery, and employment structures.
Central to STC Group's strategy is Rawafed, a dedicated platform established in 2018 to drive the national local content agenda. Through Rawafed, the company concentrates efforts on maximizing local spending, fostering innovation, attracting capital investments, and strengthening domestic competitive capabilities. The platform operates as both an operational tool and a strategic framework for translating STC Group's scale and market reach into measurable economic value for Saudi Arabia's economy.
The significance of this performance is amplified by STC Group's market position: with a market capitalization exceeding $60 billion, it represents the most valuable telecom company in the Middle East and ranks among the globe's highest-capitalized telecommunications operators. Consequently, the company's local content commitment carries material implications for the broader Saudi digital economy and private sector development. The five-year trend of increasing local content scores indicates sustained integration of local sourcing across operations and supply chains, aligning corporate strategy with Saudi Arabia's economic diversification and Vision 2030 objectives. STC Group's performance establishes a competitive benchmark within the ICT sector while demonstrating how large-cap telecommunications operators can operationalize national economic policy through supply chain and procurement architecture.
The achievement reflects a 12-percentage-point spread above the sectoral benchmark and demonstrates STC Group's systematic approach to local content integration. The company's local content expenditure has increased by more than 43% relative to the ICT sector benchmark and by more than 10% compared to 2020 baseline levels, according to the authority's assessment. This sustained growth indicates accelerating rather than plateauing localization efforts across the organization's procurement, service delivery, and employment structures.
Central to STC Group's strategy is Rawafed, a dedicated platform established in 2018 to drive the national local content agenda. Through Rawafed, the company concentrates efforts on maximizing local spending, fostering innovation, attracting capital investments, and strengthening domestic competitive capabilities. The platform operates as both an operational tool and a strategic framework for translating STC Group's scale and market reach into measurable economic value for Saudi Arabia's economy.
The significance of this performance is amplified by STC Group's market position: with a market capitalization exceeding $60 billion, it represents the most valuable telecom company in the Middle East and ranks among the globe's highest-capitalized telecommunications operators. Consequently, the company's local content commitment carries material implications for the broader Saudi digital economy and private sector development. The five-year trend of increasing local content scores indicates sustained integration of local sourcing across operations and supply chains, aligning corporate strategy with Saudi Arabia's economic diversification and Vision 2030 objectives. STC Group's performance establishes a competitive benchmark within the ICT sector while demonstrating how large-cap telecommunications operators can operationalize national economic policy through supply chain and procurement architecture.
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