Zain Saudi ordered to pay USD58.5m to Mobily

14 Nov 2016

Telecoms operator Zain Saudi has been ordered by an arbitration panel to pay SAR219.46 million (USD58.51 million) to rival Etihad Etisalat (Mobily), according to press releases published on the Saudi bourse. Zain said that it previously made provisions to cover the full amount awarded and that the decision would not have a negative financial impact on the company.

As previously reported by TeleGeography’s CommsUpdate, in early December 2014 Mobily requested a referral to arbitration with regards to receivables due under an agreement signed with Zain Saudi on 6 May 2008. Mobily disclosed that by 30 November 2013, Zain owed it SAR2.2 billion 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.

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