Saudi Telecom buys 10% stake in ride-sharing app Careem

Saudi Telecom Company’s (STC) board of directors approved on Thursday the purchase of a 10 percent stake worth SAR 375 million ($100 million) in United Arab Emirates-based ride-booking service Careem.

STC will use its internal resources to fund the investment, which will not have a material impact on the company’s financials or entail any financial obligations, it said in a statement to the Saudi bourse Tadawul.

The move is in line with the telecom firm’s strategy to invest in digital services, the statement added.

Established in 2012, Dubai-based Careem operates in 47 cities across the Middle East and North Africa, Turkey, and Pakistan.

Last month, Bloomberg reported that Careem – Uber’s Middle East rival – was close to raising about $300 million in funding, citing sources with knowledge of the matter.

In 2015, the firm – which is also backed by Saudi-listed Al Tayyar Travel Group – raised $60 million from investors including Dubai’s Abraaj Group, in order to expand in the Middle East, Africa, and Asia.