TAWAL, a subsidiary of Saudi Telecom Co., has successfully raised an impressive $1.42 billion through Islamic financing. This capital injection has intended to support the acquisition of tower assets from the Netherlands-based United Group, signaling TAWAL’s expansion into the European market.
In a significant move earlier this year, TAWAL agreed to acquire tower infrastructure valued at $1.34 billion from United Group, encompassing sites in Bulgaria, Croatia, and Slovenia. The financing for this transaction has accomplished through a Shariah-compliant bank loan, with the deal finalized on August 24.
The primary contributor to TAWAL’s funding endeavor was the Saudi National Bank, the largest bank in Saudi Arabia, contributing $1.02 billion, including a $300 million bridge loan. Additional support came from Dubai Islamic Bank and First Abu Dhabi Bank, providing $250 million and $150 million respectively.
In parallel to these developments, Saudi Telecom Co. (STC) recently announced a significant joint venture with the Public Investment Fund, known as IoT Squared. This partnership facilitated STC’s complete ownership of Machinestalk, a notable provider of Internet of Things solutions. This strategic move aims to accelerate the growth of IoT Squared and solidify its position in the regional IoT solutions sector.
These investments align closely with the goals outlined in Saudi Vision 2030, underlining the nation’s commitment to advancing digital transformation and establishing itself as a prominent technology hub in the MENA region.
Additionally, Saudi Arabia has mandated the adoption of universal charging ports for all electronic devices by 2025, marking a significant step toward standardization and sustainability in the tech landscape.