DUBAI: Telecommunications operators Saudi Telecom Co., Etihad Etisalat (Mobily) and Zain Saudi Arabia said on Sunday that they had agreed with the government to a change in the calculation of their annual royalty fees.
The companies also said they had reached a deal with the government to settle disputed fees to be paid for previous years up to 2017. In return, the trio agreed to invest in upgrading their network infrastructure over the next three years.
The Kingdom has set specific goals to boost high-speed broadband Internet connectivity as part of its Vision 2030 plan to modernize the economy, including exceeding 90 percent of housing coverage in densely populated cities and 66 percent in other urban areas.
The operators said the agreement will involve an annual royalty of 10 percent of net revenue from telecommunications services starting from Jan. 1, 2018. Mobily said in addition it would also pay an annual license royalty equal to 1 percent of its annual net telecommunication revenues.
STC said the new calculation was compared to the previous fee of 15 percent of net revenues from mobile services, 10 percent of net revenues from fixed line services and 8 percent of net revenues from data services.
STC said the change would have a positive impact on its financial results during the fourth quarter of 2018, while Zain Saudi said it would mean a drop in its payment for the period Jan. 1 to Sept. 30 by SR220 million ($58.7 million).
Mobily said that starting from 2019 onwards, the impact represents an additional cost estimated to be in the range of SR450 to SR600 million per year over the next few years.
Zain Saudi Arabia said the expected financial impact from the settlement of its disputed annual royalty fees for the period 2009 to 2017 is expected to reach SR1.7 billion.
Mobily said its agreement to invest over the next three years would enable it to boost the quality of its fixed and mobile networks and to invest in the deployment of new technologies such as 5G.
Saudi Telecom Co. agrees royalty fees
Saudi Telecom Co. agrees royalty fees
Riyadh sees 24% decrease in infrastructure project duration in 2025
RIYADH: Saudi Arabia’s capital recorded a 24 percent decrease in the execution time of infrastructure projects in 2025 compared to 2024, with the average implementation period falling from 34 days to 26 days.
According to Riyadh Infrastructure Projects Center, the improvement reflects effective coordination among various partners and stakeholders, alongside steady growth in project volumes.
This reduction came despite a rise in the total number of permits from more than 150,000 in 2024 to over 195,000 in 2025, marking a 29 percent increase in energy, water, telecommunications, and road projects in the region.
RIPC explained that the improvement is directly linked to the implementation of a comprehensive infrastructure plan and enhanced pre-planning, aligned with its strategic approach to managing projects through an integrated value chain covering planning, coordination, and enablement.
This approach, RIPC noted, relies on continuous regulatory and standard updates to boost procedural efficiency, minimize time and spatial conflicts, and reduce duplication of work.
The center highlighted that this approach reflects its regulatory role in unifying operational vision, improving stakeholder coordination, activating tools that enhance execution quality, and ensuring alignment with quality-of-life objectives and asset protection.
Operational indicators also reflected growth in project lengths, increasing from 9,490 km to 11,784 km — a 24 percent rise — alongside a surge in handled reports, which rose from 101,102 to 233,101, marking a 131 percent increase, highlighting an expanded monitoring scope and improved efficiency in managing infrastructure-related reports.
Supervisory visits rose from 84,316 in 2024 to 292,794 in 2025, a 247 percent increase, alongside an improvement in license compliance rates from 91 percent to 92 percent. These results reinforce the center’s commitment to strengthening adherence to safety and quality standards through effective oversight and standardized compliance guidance.
RIPC also highlighted that these achievements reflect its strategic focus on minimizing obstacles from infrastructure projects and reducing their urban impact during implementation, adding that this approach contributes to improving the city’s urban landscape, limiting closures and disruptions, and enhancing the daily experience of Riyadh residents.
It affirmed its continued efforts to advance planning, coordination, digitalization, and data management, while updating the regulatory and standards framework as part of a long-term strategic roadmap.
The center emphasized that this strategy is designed to keep pace with project expansion, boost organizational efficiency and sustainability, and support the development of a more integrated and harmonious urban environment for the city and its residents.
