Zain / Mobily Arbitration Panel Judgement Rejects 90% of Mobily's SAR2.2 Billion Claim

Riyadh, Saudi Arabia (ots/PRNewswire) -

- 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.

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.

(Logo: http://photos.prnewswire.com/prnh/20161004/415135LOGO )

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.

https://sa.zain.com/autoforms/portal/site/zainsa/news/news198?AF_l
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ots Originaltext: Mobile Telecommunication Company Saudi Arabia (Zain)
Im Internet recherchierbar: http://www.presseportal.de

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

Original-Content von: Mobile Telecommunication Company Saudi Arabia (Zain), übermittelt durch news aktuell