Sagtec Global successfully delivered the first phase of a US$10 million smart hospitality project in the UAE, enhancing its revenue model.
Quiver AI Summary
Sagtec Global Limited has announced the successful completion of the first phase of its $10 million smart hospitality contract in the UAE, in partnership with SMD Tech – FZCO. The company has received the first milestone payment, affirming its project execution capabilities and commercial viability. The deal, which was revealed in July 2025, includes over 60% recurring revenue from software licensing and services, with full delivery expected within the year. Additionally, Sagtec’s Speed+ Smart Ordering System has been deployed to commercial users in Southeast Asia, supporting a $30 million pipeline. As the UAE hospitality sector is projected to grow significantly, Sagtec aims to leverage its positioning in the market for further growth and innovation, focusing on long-term shareholder value.
Potential Positives
- Successful delivery of the first phase of a US$10 million smart hospitality contract in the UAE, validating project execution and commercial delivery.
- Over 60% of the contract value is recurring revenue, enhancing the company's financial stability and cash flow.
- Deployment of the Speed+ Smart Ordering System signals operational success and a solid US$30 million pipeline across Southeast Asia, reinforcing expansion strategy across multiple industries.
- The company's position in the rapidly growing US$37.7 billion UAE hospitality market highlights its strategic relevance and potential for long-term growth.
Potential Negatives
- Over 60% of the contract value is structured as multi-year recurring revenue, which may indicate a dependence on long-term contracts that could be vulnerable to fluctuations in market demand.
- The reliance on international markets, particularly the UAE, exposes the company to geopolitical and economic risks that could impact operations and revenue.
- The press release lacks information regarding potential challenges or risks faced during the project execution, which could leave stakeholders questioning the company's transparency and preparedness.
FAQ
What is the recent contract announcement by Sagtec Global?
Sagtec announced the successful delivery of the first phase of a US$10 million smart hospitality contract in the UAE.
How does Sagtec's contract impact its revenue model?
Over 60% of the contract value comprises multi-year recurring revenue from software licensing, analytics, and long-term services.
Where has Sagtec deployed its Speed+ Smart Ordering System?
The Speed+ Smart Ordering System has been successfully deployed to commercial end-users in Southeast Asia.
What is the forecast for the UAE hospitality sector?
The UAE hospitality sector is forecasted to reach US$37.7 billion by 2033, indicating significant market potential.
How is Sagtec positioning itself for future growth?
Sagtec is focused on margin-accretive growth, product innovation, and geographic expansion to drive long-term shareholder value.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
KUALA LUMPUR, Malaysia, July 25, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), a provider of enterprise software solutions for high-growth verticals, today announced the successful delivery of the first phase of its previously disclosed US$10 million smart hospitality contract in the United Arab Emirates (UAE), in partnership with SMD Tech – FZCO. The Company has received the first milestone payment, validating both project execution and commercial delivery.
The deal, originally announced in July 2025, is structured with over 60% of total value as multi-year recurring revenue, covering software licensing, analytics, hosting, and long-term service. The project remains on schedule for full delivery in 2025, with corresponding revenue capture anticipated within the current fiscal year.
“This milestone represents more than operational progress—it reinforces our ability to monetize large-scale SaaS contracts, generate recurring cash flow, and expand strategically in a high-growth international market,” said Kevin Ng, Chairman, Executive Director & CEO of Sagtec Global. “It reflects our disciplined execution and strong regional partnerships.”
Momentum Across Vertical SaaS Offerings
In addition to progress in the UAE, Sagtec confirms that its Speed+ Smart Ordering System, which supports a US$30 million pipeline across Southeast Asia, has now been successfully deployed to commercial end-users. Speed+ is a cloud-based solution tailored for the F&B and hospitality industries, designed to improve service efficiency and increase revenue per transaction.
These dual deployments reinforce Sagtec’s strategy to scale vertically integrated SaaS platforms across multiple industries—hospitality, F&B, and smart infrastructure—with a strong focus on monetizable outcomes.
“We are executing on multiple fronts with clear revenue visibility,” added Ng. “These wins strengthen our position ahead of our next earnings cycle and demonstrate the scalability of our recurring revenue model.”
Well-Positioned in a US$30B+ Market
With the UAE hospitality sector forecasted to reach US$37.7 billion by 2033 (IMARC Group), Sagtec’s expansion into the Middle East positions the Company at the center of a regional transformation toward smart tourism and digital-first guest experiences.
Backed by a resilient balance sheet and growing recurring revenue base, Sagtec remains focused on margin-accretive growth, product innovation, and geographic expansion to drive long-term shareholder value.
About Sagtec Global Limited
Sagtec Global is a technology company delivering customizable software solutions to the hospitality, F&B, and enterprise sectors. The Company also operates digital infrastructure businesses, data hosting & analysis services through its Malaysian Subsidiary, CL Technologies.
For more information on the Company, please log on to https://www.sagtec-global.com/ .
Contact Information:
Sagtec Global Limited Contact:
Ng Chen Lok
Chairman, Executive Director & Chief Executive Officer
Telephone +6011-6217 3661
Email: [email protected]
