saudi telecom company (the “company”) was established as a saudi joint stock company pursuant to royal decree no. M/35 dated 24 dhul hijja 1418h (corresponding to 21 april 1998) that authorized the transfer of the telegraph and telephone division of the Ministry of Post, Telegraph and Telephone (“MoPTT”) with its various components and technical and administrative facilities to the Company, and in accordance with the Council of Ministers’ Resolution No. 213 dated 23 Dhul Hijja 1418H (corresponding to 20 April 1998) that approved the Company’s by-laws (“by-laws”). the company was wholly owned by the government of the Kingdom of saudi Arabia (the “government”). The government sold 30% of its shares pursuant to the council of ministers Resolution no. 171 dated 2 rajab 1423h (corresponding to 9 september 2002),. the public investment fund (“PIF”) is the ultimate controlling party of the company through its ownership of 64% as at 31 december 2021 (2020: 70%). during the year 2021, the PIF through a secondary offering sold 6% of the company’s shares. the company commenced its operation as the provider of telecommunications services throughout the kingdom of saudi arabia (“the kingdom”) on 6 muharram 1419H (corresponding to 2 may 1998) and received its commercial registration no. 1010150269 as a saudi joint stock company on 4 rabi awal 1419H (corresponding to 29 june 1998). the company’s head office is located in king abdulaziz complex, imam mohammed bin saud street al mursalat area, Riyadh, Kingdom of Saudi Arabia.