Mobily sets aside SAR 61 mln provisions in Q4 ​-14 on Zain dispute

Etihad Etisalat (Mobily), Saudi Arabia’s second​-​largest​ tel​e​com operator, said it has set aside SAR 1,200 million in provisions relevant to its arbitration claim with Zain Saudi, of which SAR 61 million were allocated in forth quarter 2014.

Accordingly, nearly SAR 152 million provisions were allocated during​20​14.

Mobily said the next arbitration session for its dispute with Zain will be held on Feb. 7.

The dispute between the operators dates back to 2008, when Mobily signed an agreement with Zain Saudi, an affiliate of Kuwait's Zain, to provide site sharing and domestic roaming services​. ​

Mobily said Zain Saudi owed 2.2 billion riyals ($586.21 million) as of Nov. 30, 2013 for the deal​, according to data available on Argaam.

Zain described Mobily’s claim as overrated, adding it only owed the company SAR 13 million.