Saudi Telecom expands into Europe

On 20 April 2023, Saudi Telecom Co. announced it had signed a 20-year agreement with The United Group to acquire a portfolio of 4,800 towers across three European Union member states - Bulgaria, Slovenia and Croatia. The United Group, based in The Netherlands, is a telecoms provider across Southeast Europe. The deal, worth EUR 1.22 billion, marks Saudi Telcom’s first foray into Europe and was negotiated through its ICT infrastructure division, TAWAL.

The deal is aimed to help the Saudi company to expand its assets in international markets with a strong growth potential. This strategy aligns with the Saudi government’s ambitions to diversify its economy, reduce its dependency on oil exports, and modernise society through the massive adoption of digitisation. Since the Saudi Vision 2030 was first published in 2016, other national corporations, such as Aramco, have started to follow similar expansion strategies, notably by acquiring foreign companies or by increasing their stake in partially owned entities. 

Through the deal, Saudi Telecom acquires a new portfolio of overseas infrastructure that will enable the company to accelerate the global digital transformation. According to the deal, TAWAL will add 2000 sharable sites to its portfolio while maintaining and enhancing colocation ties with other providers. 

Olayan Alwetaid, CEO of Saudi Telecom, said “The agreement is a significant milestone in our ambitious growth strategy and the expansion of our international footprint. We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect.” 

United Group chief executive officer Victoriya Boklag said in a statement. “We are delighted to have successfully crystallised the value of our tower assets in a deal that enables us to deliver and navigate global macroeconomic pressures.”

The deal is now awaiting approval from the relevant authorities in Bulgaria and Slovenia. Once completed, TAWAL’s operations on the continent will be rebranded as “TAWAL Europe”, which will serve as the company’s main platform for any further expansion into European markets.

The company is currently leading the digital transformation in Saudi Arabia, developing the necessary infrastructure for the deployment of the 5G and the Internet of Things industries together with dedicated smart-city solutions as the Saudi government continues to bet on the potential of the digital economy and disruptive technologies to ensure its future growth.