Saudi Telecom (STC) has agreed to purchase a 10% stake worth $100million in UAE-based ride-hailing service Careem. The acquisition comes just months after Saudia Arabia’s Public Investment Fund (PIF) invested a stake in Uber – which is the global rival to Careem.

UAE ride-hailing services company Careem has invested $500,000 in a start-up entity which focuses on connecting commuters with private buses in the Egyptian capital city of Cairo. Careem, which is seen as Middle East rival to global ride-hailing colossus Uber, acquired the minority stake in SWVL after weeks of negotiations. It has also been disclosed that in addition to the investment, CEO and co-founder of Careem, Magnus Olsson will also join the board of SWVL.

Global ride-hailing giant Uber has joined forces with its Middle East competitor Careem and bought it for $1.3 billion.