Mobily requests arbitration in payment dispute with Zain

2 Dec 2014

Etihad Etisalat (Mobily), Saudi Arabia’s second largest cellco in terms of subscribers, has requested a referral to arbitration with regards to receivables due under a Roaming Service Agreement signed with rival Zain Saudi on 6 May 2008. Mobily disclosed that by 30 November 2013, Zain owed it SAR2.2 billion (USD586.15 million) for the provision of national roaming, site sharing, transmission links and international traffic. The company said that it could not reach an amicable settlement with its rival for the amount due, so its management decided to revert back to arbitration, in accordance with the Arbitration Rules and Regulations outlined in the Service Agreement. The cellco also said that it has already provided a total of SAR1.1 billion against total receivables due from Zain as of 30 October 2014. Mobily said the aforementioned agreement is still valid, although it highlighted that it is’ receiving irregular payments for its services’. According to Mobily, both parties have selected their respective arbitrators and the appointment of an umpire is currently underway.

Saudi Arabia, Mobily (Etihad Etisalat), Zain Saudi Arabia