China Telecom is strengthening its connected-car IoT business in Saudi Arabia with help from local company STC Group.

STC, a digital enabler in Saudi Arabia and the region, has signed a memorandum of understanding (MoU) with China Telecom to explore business opportunities and innovations. The primary aim of the MoU will revolve around the strategic development of IoT industries, especially connected-car projects in Saudi Arabia.

Over the past few decades, Chinese automobile companies have solidified their presence in Saudi Arabia by exporting innovative vehicles. China Telecom and STC have agreed to leverage their IoT services and expertise to usher in connected transportation and vehicles. This will allow China Telecom to expand its IoT offerings in the country and enhance Saudi Arabia’s position as an interconnected hub in the Middle East.

The agreement will provide an opportunity for both parties to promote growth in strategic areas and capture synergies that will go towards fulfilling the obligations of the MoU.

“We’re looking forward to building upon the existing cooperation framework between China Telecom and STC that includes corresponding mutual affiliates to explore joint IoT opportunities in Saudi Arabia,” said Li Yong Bo, China Telecom vice president. “Our agreement aligns with the kingdom’s Vision 2030 plan to accelerate the innovation of connected cars in the region. Both groups will work towards building benefits and advancing transportation for the nation and its people.”

Saud AlSheraihi, STC vice president, added: “We are thrilled to announce our partnership with China Telecom as a significant step towards achieving our strategic goals for the IoT industry, particularly in the realm of connected car projects in KSA. By signing this MoU, we are confident that STC and China Telecom will continue to work together to accelerate our digital developments and ensure that we meet our objectives”

IoT services in Saudi Arabia and the region will be scaled up through different technologies and digital offerings supported by the combined knowledge of all three parties, especially for the connected-cars project. There will be additional IoT prospects in the pipeline that will upgrade the lifestyle in Saudi Arabia.

Establishing the partnership strengthens the corporate foundations between STC and China Telecom in the arena of IoT, especially through the provision of practical experience and industry knowledge that builds a competitive edge. In the future, both parties plan to explore innovations and share technological breakthroughs with the wider community. 

In 2000, China Telecom established its first overseas office. It has since established its presence in 41 countries and regions. Leveraging its network resources of 50 submarine cables, China Telecom offers a global network for international carriers, multinational enterprises and overseas Chinese customers.