DUBAI: The Public Investment Fund (PIF) and stc Group (stc) said Friday they had signed a joint venture agreement to create a new company focused on the Internet of Things (IoT).
IoT, the concept of connecting home appliances to the Internet, is expected to reach 10.8 billion riyals ($2.88 billion) by 2025 at an annual growth rate of 12.8 percent, the statement said, citing data from the International Data Corporation (IDC).
The new company, headquartered in Riyadh, will be 50 percent owned by PIF and 50 percent by stc.
In February, Saudi Arabia launched investments worth $6.4 billion in future technologies as the kingdom strives to diversify its economy from oil in the face of fierce regional competition.
The agreement is part of Saudi Arabia’s efforts to fuel the rapid growth of the Internet of Things in the kingdom and make it a regional center for the Middle East and North Africa, the PIF said.
($1 = 3.7512 riyals)
(Reporting by Saeed Azhar; Editing by David Evans)