Saudi Arabia’s $90 B Satellite Power Play: How ST Engineering iDirect and Solutions by stc Are Turbo‑Charging the Kingdom’s Digital Future
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.netsatelliteprome.com
- Sovereign connectivity push. Solutions by stc will run the upgraded ground network on Saudi‑owned teleport assets, reinforcing national control over critical communications infrastructure. idirect.net
- 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.comidirect.net
2. What the Deal Covers
| Element | Details | Sources |
|---|---|---|
| Network scope | Expansion of ST Engineering iDirect hubs, line cards and software‑upgradable modems across multiple Saudi teleports; supports fixed VSAT, mobility and cellular backhaul. | idirect.netsatelliteprome.com |
| Technology | DVB‑S2X, Mx‑DMA MRC return channels, mesh receiver options and full virtualization roadmap for multi‑orbit routing. | idirect.net |
| Customer segments | Government, enterprises, oil‑and‑gas, mobile‑network operators, maritime, aviation. | newswire.casatelliteprome.com |
| Commercial model | Software licences and hub capacity sold as managed service by Solutions by stc; ST Engineering iDirect retains long‑term maintenance role. | idirect.netca.finance.yahoo.com |
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 idirect.net
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.” advfn.com
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.commcit.gov.sa
- 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. arabnews.com
4.2 Satellite Demand Drivers
- Ubiquitous 5G. STC is racing to blanket 80 % of populated areas with 5G; satellite back‑haul is critical for remote cell sites. en.wikipedia.org
- Oil & gas digital twins. Vision 2030 mandates full digitization of upstream assets — calling for high‑throughput satcom links at offshore rigs. peninsulacs.com
- Mega‑projects. NEOM, Red Sea Global and Diriyah all require low‑latency links during construction and operations. arabnews.com
5. Corporate Profiles
| Company | Snapshot |
|---|---|
| ST Engineering iDirect | Singapore‑headquartered subsidiary of ST Engineering; > 19,000 engineering staff worldwide; market leader in IP‑based satellite hubs and modems. en.wikipedia.org |
| Solutions by stc | Listed subsidiary of Saudi Telecom Company; 2024 net income SAR 1.6 billion, 34 % YoY growth; pillar of STC Group’s enterprise strategy. enterprise.newsen.wikipedia.org |
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.comsatelliteprome.com
- 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. blog.tap.company
- The partnership also sets a benchmark for hybrid GEO–LEO mesh networking, an area where Eutelsat‑OneWeb and Starlink are courting Gulf governments. satelliteprome.com
7. Risks & Next Milestones
| Risk | Mitigation |
|---|---|
| Constellation congestion could slow licensing for new Saudi orbital slots. | Joint Saudi‐Singapore lobbying at ITU WRC‑27. en.wikipedia.org |
| Ground‑segment cyber‑threats rise as more critical traffic moves to satellite. | ST Engineering’s secure waveform portfolio and stc’s national cyber‑defence SOC integration roadmap. idirect.net |
| CAPEX execution — Vision 2030 projects face cost reviews amid oil‑price volatility. | Phased software‑upgrade model reduces upfront hardware spend. peninsulacs.com |
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)
- ST Engineering iDirect press release, 19 June 2025 idirect.net
- SatellitePro ME news report, 22 June 2025 satelliteprome.com
- Newswire.ca distribution of PR, 19 June 2025 newswire.ca
- Barchart syndication, 19 June 2025 barchart.com
- LinkedIn corporate announcement, 19 June 2025 linkedin.com
- Arab News digital‑economy analysis, 18 May 2025 arabnews.com
- Saudi MCIT briefing on ICT spending, May 2025 mcit.gov.sa
- Peninsula CS Vision 2030 economic update, April 2025 peninsulacs.com
- ADVFN market note, 19 June 2025 advfn.com
- STC Group corporate profile, 2025 update en.wikipedia.org
- ST Engineering corporate profile, 2025 update en.wikipedia.org
