Mobily (Etihad Etisalat), Saudi Arabia’s second largest cellco in terms of subscribers, has announced the signing of an agreement to develop its network in Riyadh and the northern region of the Kingdom, valued at SAR500 million (USD133.33 million ). The deal was disclosed to Zawya by Finland’s minister of Economic Affairs. According to the article, Khalid Bin Omar al-Kaf, Mobily’s managing director and CEO, and Finnish minister Jan Vapaavuori have reviewed the existing cooperation between Mobily and a number of Finnish companies, which in turn ‘reflected on the development of the strategic vision of each party and the diversify sources of investment.’
As previously reported by TeleGeography’s CommsUpdate, Mobily signed a pair of 90-day Memorandum of Understanding (MoU) agreements with Finland-based Nokia Solutions and Networks (NSN) and Sweden’s Ericsson in July 2013, in order to arrange long-term financing worth USD650 million for the acquisition of equipment from both companies. The company mandated Credit Agricole and Deutsche Bank to structure and arrange the financing, which was to be monitored by Export Credit Agency of Finland (Finnvera) and the Swedish Export Credits Guarantee Board (EKN).