Multi Business Group's stc Framework Deal: A Catalyst for Long-Term Growth in Saudi Infrastructure

The extension of Multi Business Group Co.'s three-year framework agreement with Saudi Telecom Company (stc) represents a pivotal strategic win for the construction and facilities management firm. By securing a flexible, project-based partnership with one of Saudi Arabia's largest telecom operators and a key player in the Kingdom's Vision 2030 agenda, Multi Business has positioned itself at the heart of a $1 trillion infrastructure boom. This deal isn't just about short-term revenue—it's a blueprint for sustained growth in a market primed for development.

Strategic Advantages: Locking in a Vision 2030 Powerhouse

The partnership with stc is a masterstroke for Multi Business. stc isn't just a telecom provider—it's a linchpin of Saudi Arabia's digital infrastructure push. The firm's mandate to renovate and improve stc's business environments and sales outlets directly ties to Vision 2030's goals of modernizing physical and digital infrastructure. By serving as stc's preferred contractor, Multi Business gains:

1. Stable, Project-Based Revenue Stream:
   While the framework agreement's estimated value is initially listed as zero, the contract's flexibility ensures Multi Business can bid for specific projects as stc's budget and priorities evolve. This model mitigates execution risk while maintaining alignment with stc's long-term needs.

2. Scale and Cross-Sector Expertise:
   The scope includes construction, architectural finishes, and electrical/mechanical engineering—a full-stack approach that leverages Multi Business's diversified capabilities. This versatility positions it to handle both small-scale renovations and large-scale infrastructure upgrades, appealing to stc's expansive operations.

3. Strategic Access to Vision 2030 Contracts:
   stc itself has secured massive infrastructure deals, such as an $8.7 billion contract to build telecom infrastructure. Multi Business's role as a trusted partner could open doors to subcontracting opportunities on stc-led projects, particularly in areas like data centers, 5G networks, and smart city initiatives.

Growth Catalysts: Beyond the stc Deal

The stc framework isn't an isolated win. Consider these additional tailwinds:

• The 5% Revenue Catalyst:
  A separate 2025 contract with stc, valued at 5% of Multi Business's 2024 revenue (SAR 6.75 million), will boost earnings in late 2025 and early 2026. This serves as a near-term cash flow “proof point” for investors, demonstrating the partnership's financial viability.

• Vision 2030's Infrastructure Pipeline:
  Saudi Arabia's National Infrastructure Fund has allocated $53 billion to projects through 2030, with a focus on transportation, energy, and utilities. Multi Business's expertise in construction and facility management makes it a natural contender for these contracts.

• Telecom Sector Growth:
  The telecom sector is projected to expand at a 7.1% CAGR through 2029, driven by 5G rollout and digital transformation. As stc's infrastructure partner, Multi Business will benefit from this growth indirectly, even as it focuses on physical infrastructure.

Investment Takeaway: A Play on Saudi's Infrastructure Renaissance

Multi Business's stc deal is a strategic home run. The partnership offers:
- Low downside risk: The project-based model ensures Multi Business only commits resources when funded projects are secured.
- High upside potential: Vision 2030's $1 trillion pipeline and stc's own $8.7 billion telecom contract create a multiyear revenue runway.

Investors should monitor:
1. Purchase order disclosures: Each new project award will clarify the financial upside.
2. Stc's infrastructure spending: A slowdown in stc's projects could delay Multi Business's growth, but the telecom giant's Vision 2030 alignment suggests resilience.

Conclusion: A Builder for the Future

Multi Business Group isn't just another construction firm—it's a partner to one of Saudi Arabia's most critical infrastructure players. With Vision 2030's goals still in their infancy and stc's projects extending well into the next decade, this deal positions the company to capture a significant share of the Kingdom's growth. For investors seeking exposure to Saudi Arabia's infrastructure boom, Multi Business is a compelling play on a decades-long transformation.

Final Note: Keep an eye on Multi Business's Q4 2025 earnings report, where the 5% stc contract's impact will begin to materialize. This could be the first step toward a sustained growth story.