MIS expects data center to contribute SAR 3.5 bln to MCIT’s digital infrastructure initiative: vice chairman

Ibrahim Al-Moammar, Vice Chairman of Al Moammer Information Systems Co. (MIS)

Al Moammer Information Systems Co. (MIS) expects its private investment fund in partnership with Saudi Fransi Capital (SFC) to contribute SAR 3.5 billion in the first phase of the digital infrastructure initiative, Vice Chairman Ibrahim Al-Moammar told Argaam in a telephone interview.

The digital infrastructure initiative has been launched by the Ministry of Communications and Information Technology (MCIT).

Contracts worth SAR 1.2 billion were signed, Al-Moammar said, expecting further investments to receive an appropriate share, in case the initial phases prove successful.

MIS is committed to its previously-announced dividend policy, under which a minimum of 45% of net profit will be distributed to shareholders over three years.

When asked about stock price rallies, Al-Moammar said the stock price is subject to offer and demand, affirming that the recent gains were driven by investor expectations as well as confidence in the firm and its performance.

He also highlighted that MIS has become the first “unicorn” company in the Kingdom with market capitalization of over $1 billion.

MIS joined the initiative of the MCIT in the development of large data centers and to lead the growth in digital transformation, Argaam reported.

The ministry expects to accelerate the development of data centers in the Kingdom to exceed the 1,300-megawatt barrier by 2030, with expected investments exceeding $18 billion in data centers and renewable energy serving the region.