Kuwaiti “Zain” leaves the Lebanese market

Kuwaiti “Zain” leaves the Lebanese market
Kuwaiti “Zain” leaves the Lebanese market
The Kuwaiti Mobile Telecommunications Company “Zain”, listed on the Kuwait Stock Exchange, said on Sunday that the Lebanese “Touch” company decided not to extend its management contract by “Zain” after a process that began 16 years ago in the Lebanese telecommunications market.

“Zain” added in a statement that “Touch” made its decision not to renew the contract during its meeting last Friday.

Based on the decision, “Zain” will have completely exited the “touch” management process and handed over the company to a new management and board of directors appointed by the Lebanese Ministry of Communications, according to the statement.

Zain added that it wants to be present in the Lebanese telecommunications market, and to apply again in the event a new tender is issued to manage the two mobile telecommunications companies operating in Lebanon.

And the Lebanese Minister of Communications Talal Hawat confirmed last May that the cabinet approved a request to restore the government’s management of the two mobile phone companies in the country prior to a new bid.

Zain: The Lebanese “Touch” has made its decision not to renew the contract with Zain
Zain: The Lebanese “Touch” has made its decision not to renew the contract with Zain
Hawat said in a statement at the time that the Council of Ministers agreed to assign the Ministry of Communications to transfer the management of the two cellular companies from the management of “Zain” and “Orascom” to the administration of the Ministry of Communications, and to prepare a book of conditions for the global tender for managing and operating the two cellular networks and the management contract within three months.

According to that approval, the ministry will operate the government-owned “Alpha” and “Touch” networks, which are managed by the Egyptian “Orascom” and “Zain” despite the expiration of the contract period.

Kuwaiti “Zain” had signed an agreement with the Lebanese government in June 2004 to manage the “Touch” company, and the contract was extended over the last 16 years.

“Zain” was established in 1983, and it is 24.22 percent owned by the Kuwait Investment Authority, and operates in 8 countries: Kuwait, Saudi Arabia, Bahrain, Iraq, Jordan, Lebanon, Morocco and Sudan.

Zain is one of the leading companies in the field of mobile communications in the Middle East and North Africa, with a wide geographical spread.

Zain Group ended the year 2016 with a total net profit of 157 million dinars (about 519 million dollars), a growth rate of 2 percent, while the total combined annual revenues amounted to 1.1 billion dinars. 512 million dinars, a growth rate of 3 percent at the end of 2016.

During the first six months of the year 2017, Zain Group achieved consolidated revenues of 508 million Kuwaiti Dinars (1.67 billion US dollars). Earnings before deduction of interest, taxes and depreciation amounted to 212 million Kuwaiti dinars (695 million dollars). Interest, taxes and depreciation is 41.7 percent, and net profits are 82 million Kuwaiti dinars (270 million dollars).

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