China Telecom signed a memorandum of understanding (MoU) with stc to explore opportunities in the IoT sector, focusing specifically on connected car projects in Saudi Arabia.

In a statement, the pair highlighted how Chinese automobile companies had solidified their presence in Saudi Arabia through exporting vehicles, creating an opportunity around the next-generation of connected transportation.

VP products and solutions at stc, Saud AlSheraihi, said the deal is “a significant step towards achieving our strategic goals for the IoT industry, particularly in the realm of connected car projects”.

The companies added the partnership presents an opportunity for growth as it will allow China Telecom to expand its IoT services and cement Saudi Arabia’s position as an interconnected hub in the Middle East.

Also commenting on the deal, VP global roaming and mobility business centre at China Telecom, Li Yong Bo, said the duo will “work towards building benefits and advancing transportation for the nation and its people”.

The tie-up represents stc’s latest move in the sector. Earlier this year, the operator struck two partnership deals with BMW and US-based electric vehicle company Lucid Motors to provide connected communications systems in cars.

In 2021, stc also signed a deal with vehicle software company Cubic Telecom to develop in-car connected services in Saudi Arabia.