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Zain / Mobily Arbitration Panel Judgement Rejects 90% of Mobily's SAR2.2 Billion Claim
 
 
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- Mobily allocated only SAR 219 million of its SAR 2.2 billion claim - Zain CEO confirms: no impact on Zain's net earnings... it's time to put legacy issue behind us.

RIYADH, Saudi Arabia, November 14, 2016 /PRNewswire - MySolutionInfo/ -- On Thursday, November 10 2016 the arbitration panel announced their judgment in relation to the disputed SAR 2.2 billion claim by Etihad Etisalat ("Mobily") from Mobile Telecommunication Company Saudi Arabia ("Zain") arising from the services agreement signed between the two parties on May 6, 2008.

The arbitration panel allocated Mobily SAR 219,464,509, amounting to less than 10% of Mobily's claim.

Hassan Kabbani, CEO of Zain Saudi Arabia commented, "I trust that this judgement brings to an end this legacy issue that has overshadowed both companies, and indeed the entire telecommunications sector in the Kingdom. Throughout the arbitration proceedings we have acknowledged that Zain owed Mobily a modest amount. As Zain maintained adequate financial provision to cover this amount, I can confirm that the judgement amount of SAR 219 million will have no additional impact on the Company's net earnings."

He continued, "I would like to thank our team of legal advisors, technical experts, accounting experts and of course the team at Zain for their support over the last two years."

Kabbani concludes, "Telecommunications by its nature is one of the most interconnected industries in the world. As a sector, we all need to put this legacy matter behind us and focus on achieving the strategic objectives of Vision 2030 for the benefit of the Kingdom and all consumers."

Zain Saudi Arabia highlights the professionalism and transparency of the Riyadh Chamber of Commerce's new commercial arbitration guidelines, which greatly contribute to maintaining the confidence and trust in the Kingdom's business environment.

The arbitration proceedings commenced in December 2014 following a formal claim by Mobily for SAR 2.2 billion from Zain.

Zain rejected the claim, stating that it arose from Mobily's unilateral revocation of amendments to the 2008 Services Agreement, agreed between the parties.

CONTACT: Bander Saed Alghamdi - Corporate Communications Director - +966 59 244 0088 - Bander.alghamdi@sa.zain.com

Posted on: Nov 14 2016
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CategoryDescription
Telecommunications
 
http://www.zain.com
Country: Kuwait

Zain is a leading telecommunications operator across the Middle East providing mobile voice and data services to over 37.2 million active customers as of 31 December 2010 with a commercial presence in 7 countries. Zain operates in the following countries: Bahrain, Iraq, Jordan, Kuwait, Saudi Arabia and Sudan. In Lebanon, the company manages 'mtc-touch' on behalf of the government. In Morocco, Zain has a 15.5% stake in Wana Telecom, now branded 'INWI', through a joint venture. Zain is listed on the Kuwait Stock Exchange (stock ticker: ZAIN).

For more information please visit www.zain.com
www.facebook.com/zain
www.twitter.com/zain
www.youtube.com/zain

Zain Head office
Shuwaikh, Airport Road, Kuwait
P.O.Box: 22244 Safat, 13083 Kuwait
Tel: KW +965 4644444

Media Enquiries: info@zain.com

Media contact:
Antoine Aboukhalil
Acting Director
Zain Group Corporate Communications
Zain
Office: (LB) +961.3.792165
Fax: (LB) +961.3.792180

For more information on Zain Bahrain, please visit www.bh.zain.com.
For more information on Zain Kuwait, please visit www.kw.zain.com







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