Sagtec Global (NASDAQ: SAGT) Accelerates Middle East Expansion with US$10 Million Smart Hospitality Tech Deal in UAE

Rhea-AI Summary

Sagtec Global (NASDAQ: SAGT) has secured a US$10 million smart hospitality technology agreement with UAE-based SMD Tech – FZCO, marking its strategic entry into the Middle East's hotel automation segment. The contract involves developing and managing a next-generation Hotel Self Check-In/Out System across UAE's premium hospitality properties.

The deal structure includes US$4 million for licensing and custom software development, US$3 million for a five-year service and maintenance agreement, and US$3 million for a five-year data hosting and analytics contract. Notably, 60% of the contract value represents multi-year recurring revenue.

This agreement follows Sagtec's May 2025 announcement of a US$30 million revenue pipeline from its Speed+ Smart Ordering System. The comprehensive solution suite includes integrated hotel check-in/out automation, unified integration platform, automated room key card dispensing systems, and specialized CRM and POS modules. The UAE hospitality market is projected to reach US$37.7 billion by 2033, growing at a CAGR of 5.2% from 2025.

Positive

• Secured US$10 million smart hospitality technology contract in UAE
• 60% of contract value is recurring revenue over multiple years
• Existing US$30 million revenue pipeline from Speed+ Smart Ordering System
• Strategic expansion into UAE's hospitality market projected to reach US$37.7B by 2033
• Diversification of SaaS verticals beyond Food & Beverage sector

Negative

• None.

News Market Reaction

-5.36%

1 alert

-5.36% News Effect

On the day this news was published, SAGT declined 5.36%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Strategic Partnership with SMD Tech Signals Sagtec’s Entry into the US$30B Smart Tourism Sector; 60% of Contract Value is Multi-Year Recurring Revenue

KUALA LUMPUR, Malaysia, July 01, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), a leading provider of customizable enterprise software solutions, today announced the signing of a US$10 million smart hospitality technology agreement with SMD Tech – FZCO, a UAE-based digital infrastructure firm. This major win represents a pivotal step in Sagtec’s expansion strategy across the Middle East and its entry into the high-growth hotel automation segment.

Under the terms of the deal, Sagtec will develop and manage a next-generation Hotel Self Check-In/Out System across premium hospitality properties in the UAE. The project includes software licensing, systems integration, data analytics, and long-term service and maintenance, delivering an end-to-end solution that supports the region’s push toward smart tourism and contactless guest experiences.

Contract Breakdown:

• US$4 million – Licensing and custom software development
• US$3 million – Five-year service and maintenance agreement
• US$3 million – Five-year data hosting and analytics contract
  

Over 60% of The Contract Value Represents Multi-Year Recurring Revenue Streams

This latest development builds upon Sagtec’s May 2025 announcement of a US$30 million revenue pipeline stemming from the exclusive distribution of its Speed+ Smart Ordering System. The UAE partnership diversifies Sagtec’s SaaS verticals beyond Food & Beverage into the rapidly growing hospitality tech domain.

“This strategic collaboration with SMD Tech not only affirms confidence in Sagtec’s innovation capabilities but also unlocks new market opportunities in one of the fastest-growing tourism economies in the world,” said Kevin Ng, Chairman, Executive Director, and Chief Executive Officer of Sagtec. “As the hospitality industry undergoes digital transformation, our tailored solutions are set to redefine how hotels operate and engage guests.”

Sagtec’s comprehensive solution suite will include:

• Integrated hotel check-in/out automation
• Unified integration platform for backend operations
• Automated room key card dispensing systems
• CRM and POS modules optimized for hotel environments
• Custom-built self check-in kiosks
• Self Check-In Machine Operational Readiness Platform (ORP)

Capitalizing on UAE’s Smart Hospitality Growth

The UAE’s hospitality sector is undergoing a major digital transformation, fueled by government smart city initiatives, a post-pandemic travel rebound, and growing demand for seamless guest experiences. According to IMARC Group, the UAE hospitality market is expected to reach US$37.7 billion by 2033, growing at a CAGR of 5.2% from 2025 onwards.

Sagtec’s latest offering is well-positioned to capitalize on this growth, addressing operational efficiency and customer experience simultaneously—key priorities for premium hospitality operators in the region.

About Sagtec Global Limited

Sagtec is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector. The Company also offers software development, data management, and social media management to enhance operational efficiency across various industries. Additionally, Sagtec operates power-bank charging stations at 300 locations across Malaysia through its subsidiary, CL Technology (International) Sdn Bhd.

For more information on the Company, please log on to https://www.sagtec-global.com/.

About SMD Tech – FZCO

SMD Tech - FZCO is a technology-focused enterprise based in the United Arab Emirates, specializing in digital infrastructure, IoT solutions, and enterprise transformation. With a mission to empower businesses through innovative software and hardware integration, SMD Tech delivers cutting-edge solutions tailored to the region’s fast-evolving digital ecosystem. The company is committed to driving operational excellence and future-ready growth for its clients.

Contact Information:

Sagtec Global Limited Contact:
Ng Chen Lok
Chairman, Executive Director & Chief Executive Officer
Phone: +6011-6217 3661
Email: info@sagtec-global.com

FAQ

What is the value of Sagtec Global's (NASDAQ: SAGT) new UAE contract?

Sagtec secured a US$10 million smart hospitality technology agreement with UAE-based SMD Tech – FZCO for developing and managing a Hotel Self Check-In/Out System.

How is the US$10 million UAE contract structured for Sagtec (SAGT)?

The contract is divided into US$4 million for licensing and software development, US$3 million for five-year service and maintenance, and US$3 million for five-year data hosting and analytics.

What percentage of Sagtec's UAE contract represents recurring revenue?

60% of the contract value represents multi-year recurring revenue streams through service, maintenance, and data hosting agreements.

What is the projected size of UAE's hospitality market by 2033?

According to IMARC Group, the UAE hospitality market is expected to reach US$37.7 billion by 2033, growing at a CAGR of 5.2% from 2025.

What solutions will Sagtec provide in its UAE hospitality contract?

Sagtec will provide integrated hotel check-in/out automation, unified integration platform, automated room key card dispensing systems, CRM and POS modules, and custom-built self check-in kiosks.