Riyadh – Mubasher: Saudi Telecom Company (stc) has announced a formal six-month extension to its memorandum of understanding (MoU) with Future Artificial Intelligence Company (HUMAIN) regarding the establishment of a new joint venture (JV), according to a bourse filing.
The project is being executed through stc’s specialized subsidiary, Digital Centers for Data and Telecommunications Company (Center3), will now undergo an additional period of negotiation and preparation as the parties work toward a definitive agreement.
The initial agreement between the Saudi telecommunications leader and HUMAIN was first disclosed to the Saudi Exchange (Tadawul) on 18 December 2025.
Following the conclusion of the original term, both entities have agreed to extend the validity of the memorandum starting from 18 June 2026. This extension is intended to provide the necessary timeframe to conclude final negotiations and satisfy the remaining regulatory and operational prerequisites essential for the formal launch of the joint venture.
The decision to extend the memorandum stems from the substantial scale and strategic significance of the proposed project for both parties. Given the complexity of establishing a joint venture within the high-growth artificial intelligence sector, the extension allows stc and HUMAIN to complete the intricate legal, technical, and administrative frameworks required for a sustainable partnership.
The companies emphasized that the additional time is required to align with the targeted execution plan and ensure all internal and external requirements are met before signing the final joint venture agreement.
During the initial period of the memorandum, stc reported that both parties achieved tangible progress across several key areas. Discussions have advanced significantly regarding the commercial structure of the venture, as well as the operational and regulatory aspects that will govern the entity’s future activities.
These developments indicate a continued commitment from both sides to bring the project to fruition, despite the extension of the formal timeline.
Meanwhile, the progress noted suggests that the core components of the partnership have been largely aligned, leaving the remaining period for the finalization of binding legal documentation and the completion of necessary regulatory filings.
Center3, the subsidiary through which stc is facilitating this venture, plays a critical role in the group’s broader digital infrastructure strategy.
By partnering with HUMAIN, stc aims to bolster its presence in the artificial intelligence landscape, leveraging its extensive data center and telecommunications assets to support advanced technological applications and digital transformation initiatives.
Regarding the financial implications of this extension, stc clarified that there is currently no material financial impact on the company’s financial statements. The costs associated with the extension and the ongoing negotiations remain unchanged from the previous assessment.
The company has committed to providing further updates to shareholders and the wider market as material developments occur or when the final joint venture agreement is officially executed. This measured approach reflects the parties' intent to establish a robust foundation for the venture, addressing the multifaceted requirements of the Saudi market and the specific technical demands of the artificial intelligence industry.
