Mobily, Zain arbitration could be referred to telecom authority

Officials arbitrating between Zain Saudi and Mobily are looking to refer the appeal to the kingdom’s telecommunication authority instead, according to a report published by Okaz newspaper.

The move is meant to ensure that shareholders are not held responsible for the dispute and that their stocks aren’t affected.

Mobily, the kingdom’s second-largest telecom operator, asked for arbitration on Tuesday about money it claims it is owed by Zain Saudi, according to Argaam.

In 2008, Mobily had signed a SAR 2.2 billion agreement with Zain Saudi, an affiliate of Kuwait’s Zain, to provide services including domestic roaming and site sharing.

Mobily, however, said it received irregular payments from Zain.

Zain claimed that it paid Mobily on time and that it currently owes the company SAR 13 million, according to its unaudited records.