UAE-based telecoms group Etisalat and Saudi Arabian mobile operator Etihad Etisalat (Mobily) have inked a five-year technical services and support agreement. The new deal supports Mobily’s business development and improves its operating efficiency, while also including common procurement initiatives leveraging the scale of Etisalat. Mobily added that the new agreement is mostly performance-based and will not have material impact on its financial results. As reported by TeleGeography’s CommsUpdate in December 2016, Etisalat’s management agreement with its Saudi Arabian affiliate expired that month and the two companies decided not to renew the arrangement, opting instead to develop a new technical services deal.
TeleGeography notes that at the time of its launch in 2005, Mobily’s largest single shareholder was Etisalat with a 35% stake. In April 2008 a further 20% tranche was floated on the stock market (as had been agreed under the terms of its original licence), and the sale saw Etisalat’s stake diluted to 26.25%. Etisalat, however, has since modestly increased its holding in the company by buying out Mobily’s outstanding shares, and currently holds 27.5% of the Saudi operator.