Saudi Arabia’s $90 B Satellite Power Play: How ST Engineering iDirect and Solutions by stc Are Turbo‑Charging the Kingdom’s Digital Future

• The agreement was inked on 20 June 2025 and publicly confirmed between ST Engineering iDirect and Solutions by stc to expand a next-generation ground network for government broadband, 5G backhaul, and mobility services across Saudi Arabia.
• The deal is timed to support Vision 2030 and aims to secure sovereign, multi-orbit satcom capacity to underpin a digital-economy valued at SR 495 billion (about US$131.9 billion) today and US$90 billion in incremental ICT value by 2030.
• The scope includes expansion of ST Engineering iDirect hubs, line cards, and software-upgradable modems across multiple Saudi teleports, supporting fixed VSAT, mobility, and cellular backhaul.
• The technical stack features DVB-S2X, Mx-DMA MRC return channels, mesh receiver options, and a full virtualization roadmap for multi-orbit routing.
• Commercially, software licenses and hub capacity will be sold as a managed service by Solutions by stc, with ST Engineering iDirect retaining long-term maintenance responsibilities.
• Don Claussen, CEO of ST Engineering iDirect, hailed the collaboration as delivering advanced connectivity for digital transformation, while Saudi officials emphasize sovereign, secure, scalable satellite capacity to reach remote oilfields and giga-projects like the Red Sea corridor.
• Digital-economy contribution in Saudi Arabia already accounts for 15% of GDP and rose 11% year-over-year in 2024, with ICT spending on AI and data centers exceeding SR 55 billion (US$14.6 billion) in 2024 and data-center capacity up 42% to 290 MW.
• STC aims to blanket 80% of populated areas with 5G, making satellite backhaul critical for remote cell sites, while oil-and-gas digital twins require high-throughput satcom links for offshore rigs and mega-projects such as NEOM, Red Sea Global, and Diriyah.
• Arabsat and Thuraya remain dominant in space capacity, but neither controls ground infrastructure as extensive as Solutions by stc, giving Saudi Arabia a strategic lever in spectrum negotiations and defense communications, and signaling a benchmark for GEO–LEO mesh networking with Eutelsat-OneWeb and Starlink in the Gulf.
• Saudi Arabia is knitting space assets into its economic-diversification engine, pairing ST Engineering iDirect’s ground-segment technology with Solutions by stc’s national footprint to create a software-defined satellite backbone spanning maritime VSAT, 4G/5G backhaul, and sovereign LEO integration, with follow-on announcements on managed LEO gateways and AI-driven network orchestration ahead of Expo 2030.

Saudi Arabia’s satellite‑connectivity ambitions took a decisive leap this week: ST Engineering iDirect has signed a wide‑ranging, multi‑year agreement with Solutions by stc (the ICT arm of Saudi Telecom Company) to expand a next‑generation ground network that will feed everything from government broadband to 5G backhaul and mobility services across the Kingdom. The deal arrives just as Saudi Arabia’s digital economy races toward a projected US $90 billion valuation by 2030 and underscores Riyadh’s intent to secure sovereign, multi‑orbit satcom capacity to underpin Vision 2030. Below is a deep‑dive that puts the announcement in context, examines the technology stack, and weighs what comes next for regional — and global — satellite markets.

1. Why This Partnership Matters

• Strategic timing. The agreement was inked on 20 June 2025 and publicly confirmed on 19‑22 June via press releases and trade‑press coverage, aligning with a surge in Saudi satcom spending and data‑center build‑outs. idirect.net1
• Sovereign connectivity push. Solutions by stc will run the upgraded ground network on Saudi‑owned teleport assets, reinforcing national control over critical communications infrastructure. 2
• Vision 2030 backdrop. Riyadh values its digital economy at SR 495 billion (≈ US $131.9 billion) today and targets US $90 billion in incremental ICT value‑add by 2030, making resilient back‑haul essential. arabnews.com2

2. What the Deal Covers

3. Expert Voices

“This collaboration … is a testament to our shared vision of delivering advanced connectivity solutions that empower digital transformation across the Kingdom.” — Don Claussen, CEO, ST Engineering iDirect 2

Saudi officials have repeatedly stressed the need for “sovereign, secure and scalable satellite capacity” to reach remote oilfields, Red Sea giga‑projects and autonomous‑vehicle corridors. arabnews.com Industry analysts at ADVFN add that the deal “positions Solutions by stc to meet explosive bandwidth demand while keeping spend inside the Kingdom.” 3

4. Saudi Arabia’s Satellite & Digital‑Economy Trajectory

4.1 Market Growth Indicators

• Digital‑economy contribution already equals 15 % of Saudi GDP and climbed 11 % YoY in 2024. arabnews.com4
• ICT spending on AI and data centers exceeded SR 55 billion (US $14.6 billion) in 2024, driving a 42 % jump in data‑center capacity to 290 MW. 5

4.2 Satellite Demand Drivers

1. Ubiquitous 5G. STC is racing to blanket 80 % of populated areas with 5G; satellite back‑haul is critical for remote cell sites. 6
2. Oil & gas digital twins. Vision 2030 mandates full digitization of upstream assets — calling for high‑throughput satcom links at offshore rigs. 7
3. Mega‑projects. NEOM, Red Sea Global and Diriyah all require low‑latency links during construction and operations. 5

5. Corporate Profiles

6. Regional Competitive Landscape

• Arabsat and Thuraya continue to dominate space‑segment capacity, but neither controls ground infrastructure as extensive as Solutions by stc now wields. satelliteprome.com1
• Neighboring telcos (e.g., du in the UAE) rely heavily on foreign teleport services; Saudi Arabia’s in‑house approach provides strategic leverage in spectrum negotiations and defence communications. 8
• The partnership also sets a benchmark for hybrid GEO–LEO mesh networking, an area where Eutelsat‑OneWeb and Starlink are courting Gulf governments. 1

7. Risks & Next Milestones

8. Bottom Line

Saudi Arabia is no longer content to be a passive buyer of orbital capacity; it is knitting space assets directly into its economic‑diversification engine. By pairing ST Engineering iDirect’s proven ground‑segment technology with Solutions by stc’s national footprint, Riyadh gains an agile, software‑defined satellite backbone — one that can flex from maritime VSAT to 4G/5G backhaul and even sovereign LEO integration. For investors, the partnership signals continuing CAPEX momentum in Middle East satcom despite macro‑headwinds; for competitors, it raises the bar on local content and security assurances. Expect follow‑on announcements around managed LEO gateways and AI‑driven network orchestration well before the Kingdom lights the torch on Expo 2030.

Key Sources Consulted (chronological)

1. ST Engineering iDirect press release, 19 June 2025 2
2. SatellitePro ME news report, 22 June 2025 1
3. Newswire.ca distribution of PR, 19 June 2025 9
4. Barchart syndication, 19 June 2025 10
5. LinkedIn corporate announcement, 19 June 2025 11
6. Arab News digital‑economy analysis, 18 May 2025 5
7. Saudi MCIT briefing on ICT spending, May 2025 4
8. Peninsula CS Vision 2030 economic update, April 2025 7
9. ADVFN market note, 19 June 2025 3
10. STC Group corporate profile, 2025 update 6
11. ST Engineering corporate profile, 2025 update 12