RIYADH (AFP) – Saudi Arabia’s biggest broadcast communications firm STC arrangements to purchase a 10 percent stake in auto booking firm Careem, the organization said on Sunday.
Careem is a contender of US-based Uber, a cell phone application that interfaces travelers and drivers.
In a notice to the Saudi stock trade, Saudi Telecom Co said the proposed stake is worth $100 million, to be subsidized by STC’s “inner money related assets.”
The speculation is the most recent prominent Saudi wander since Riyadh in April reported its Vision 2030 arrangement to expand the oil-subordinate economy and widen its venture base.
“This move is in accordance with the organization procedure to put resources into the inventive computerized world,” STC said, including it would “improve correspondence through portable inside the vehicle framework.”
Uber declared in June that Saudi Arabia’s Public Investment Fund would infuse $3.5 billion to help the application’s worldwide development.
Its opponent Careem was established in 2012 and has operations in 47 urban areas over the Middle East, North Africa, Turkey and Pakistan, STC said.
STC is the biggest Arab media communications firm as far as capitalisation. It has more than 100 million clients in nine nations including Turkey, South Africa, India and Malaysia.
Auto booking applications are well known in Saudi Arabia, especially among ladies who are banned from driving in the kingdom.