February 25, 2026
Saudi Arabia’s telecommunications sector reported strong revenue growth in 2025, with total revenues exceeding SAR108.4 billion ($28.9 billion), up 3.8 percent from SAR104.46 billion in 2024. The performance reflects continued customer expansion and rising demand for digital and data-driven services, reinforcing the sector’s role in advancing Vision 2030.
Despite the increase in revenues, aggregate net profits declined by 33.4 percent. The three largest listed operators — stc, Mobily, and Zain KSA — recorded combined earnings of SAR18.9 billion ($5 billion), down from SAR28.39 billion ($7.6 billion) the previous year.
The decline was largely attributed to Saudi Telecom Company (stc), which accounts for 78 percent of the sector’s earnings. stc’s net profit fell 39.9 percent to SAR14.83 billion, mainly due to a high comparison base in 2024 when exceptional and non-recurring gains significantly boosted profitability.
Mobily, however, reported an 11.55 percent rise in net profit to SAR3.47 billion, supported by revenue growth across business segments and a broader customer base. Zain KSA also posted a 1.3 percent increase in profit to SAR604 million, driven by higher consumer and wholesale revenues, expansion of 5G services, and growth in its fintech arm, Tamam Finance.
Analysts noted that rising operational and financing costs, along with sustained capital expenditure and competitive pricing pressures, weighed on overall profitability. However, the medium-term outlook remains positive, supported by increasing demand for data services, cloud computing, digital solutions, and expansion into adjacent sectors such as fintech and data centers.
The sector is increasingly shifting from traditional telecom services to integrated digital offerings, a strategic transition expected to strengthen margins and stabilize profitability in the coming years.
