Sure Global Tech: A Steady Beacon in Saudi Arabia's Digital Renaissance

The rapid digitization of Saudi Arabia's public and private sectors has created fertile ground for firms like Sure Global Tech, which is leveraging long-term government contracts to secure a dominant position in the kingdom's tech-driven transformation. With a pipeline of multi-year agreements worth over SAR 21.6 million and projects spanning 17 to 36 months, the company is positioned to deliver sustained cash flow and dividend stability—critical factors for investors seeking resilience in an uncertain global economy.

Recurring Government Wins: A Blueprint for Growth

Sure Global Tech's recent contract wins reflect its deepening ties to Saudi Arabia's Vision 2030 initiatives. Key projects include:

1. Committees Management System (36 months, SAR 9.99 million):
   This project, awarded in August 2023, involves developing an AI-powered platform to streamline governmental decision-making. By automating workflows and enhancing transparency, the system aligns with Saudi Arabia's push for governance modernization.

2. Supply Chain Diversification (30 months, SAR 13.86 million):
   Launched in April 2024, this initiative partners with the Ministry of Commerce to build AI-driven systems for supply chain resilience. The contract underscores Sure Global Tech's expertise in critical infrastructure, a priority for Saudi Arabia's economic diversification.

3. Digital Platform Development (17 months, SAR 11.6 million):
   Signed in April 2025, this project creates a next-generation digital platform for a major governmental entity, further embedding the company in core public-sector tech projects.

The combination of these contracts not only provides immediate revenue visibility through 2026 but also cements Sure Global Tech's reputation as a trusted partner for the Saudi government.

Financial Implications: Cash Flow and Dividend Stability

The extended timelines of these contracts (17–36 months) create a predictable revenue stream, reducing execution risk and enabling steady dividend payouts. For instance:
- The 36-month Committees Management System will contribute to earnings through 2026, while the 30-month Supply Chain project stretches into late 2026.
- Shorter-term contracts, such as the 17-month digital platform project, add incremental cash flow in 2025–2026.

This staggered pipeline minimizes reliance on new contract wins, a rarity in the tech sector. Meanwhile, the government-backed nature of these projects virtually eliminates default risk, as Saudi entities prioritize fulfilling Vision 2030 mandates.

Strategic Positioning in Saudi's Tech Future

Sure Global Tech's focus aligns seamlessly with Saudi Arabia's SAR 1.7 trillion National Transformation Program, which emphasizes digital governance, AI adoption, and supply chain innovation. The company's projects in committee automation, AI-driven logistics, and integrated IT systems directly address these priorities, positioning it to capture future opportunities in defense, healthcare, and smart cities.

Moreover, its partnerships with entities like the General Authority of Foreign Trade and the Ministry of Economy and Planning signal institutional favor, likely opening doors to larger, nation-building projects.

The Investment Case: Buy with a 25% Upside Target

Current Valuation: Sure Global Tech trades at 12x forward earnings, below its peers in the tech services sector. With a conservative 15x multiple reflecting its stable cash flows and low risk, the stock could rise to SAR 65 from its current level of SAR 52—a 25% upside.

Dividend Attractiveness: A consistent 3% yield is achievable given projected free cash flow, making the stock appealing to income investors.

Risk Factors: While geopolitical risks exist, the company's reliance on government contracts insulates it from broader market volatility.

Conclusion: A Buy Recommendation for Long-Term Holders

Sure Global Tech's contract pipeline and strategic alignment with Saudi Arabia's digital ambitions create a compelling case for investors seeking low-risk growth and income stability. With earnings visibility through 2026 and a valuation that does not yet reflect its long-term potential, the stock is primed for a multiyear rally. Investors should act now to secure a position in this cornerstone of Saudi Arabia's tech revolution.

Rating: Buy
12-Month Target Price: SAR 65 (25% upside)
Key Catalyst: Additional contract wins in Q4 2025 for Vision 2030-linked projects.