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Zain Group

Zain Group, officially known as Mobile Telecommunications Company KSCP, is a Kuwait-based multinational founded in 1983 as the first mobile operator in the . It operates as a leading provider of mobile voice, data, digital services, and innovative technologies across eight markets in the and , including , , , , , , , and , where it holds a 15.5% in Wana Corporate. As of September 30, 2025, Zain Group serves 51.3 million active customers and employs approximately 7,900 people globally. The company has evolved from its origins as the Mobile Telecommunications Company in into a diversified techco, emphasizing through subsidiaries like ZainTech for enterprise solutions and initiatives such as deployment, via Zain Cash, and platforms. Under the leadership of Vice Chairman and Group CEO Bader Nasser Al-Kharafi since 2017, Zain has pursued a customer-centric strategy focused on , , and growth in . In , it achieved a record annual revenue of KD 2 billion (approximately USD 6.4 billion), marking a 3% year-over-year increase and a 15-year high, driven by strong performance in data services and market expansions. Zain Group is publicly listed on the and maintains a commitment to aligned with Capital Markets Authority principles, while contributing to regional development through infrastructure investments and social initiatives in its operational footprint. For the first nine months of 2025, revenues reached KD 1.7 billion (USD 5.4 billion), reflecting 15% growth year-over-year, with normalized up 31% to KD 178 million (USD 581 million).

History

Founding and early years

The Mobile Telecommunications Company (MTC) was established on June 22, 1983, in , as the first mobile telecommunications operator in the . Initially holding a in Kuwait's mobile market, MTC launched analog mobile services that same year, introducing the country's inaugural and laying the foundation for mobile in the area. These early services operated on analog technology, serving a limited but pioneering subscriber base that began in the thousands. In 1994, MTC achieved a key technological milestone by transitioning to services, becoming the first in the to launch commercial operations in . This upgrade enhanced quality, capacity, and accessibility, supporting broader adoption of . To capitalize on this shift, MTC invested significantly in infrastructure during the , expanding coverage across and upgrading base stations to handle increasing demand. By the late 1990s, MTC had solidified its market leadership in through sustained growth, with its subscriber base expanding rapidly from initial thousands to hundreds of thousands, driven by the digital transition and enhancements. A pivotal financial milestone occurred in when MTC listed on the , enabling further capital raising for domestic expansion. This period of focused development in positioned MTC for future international strategies, culminating in its rebranding to Zain in 2007.

Expansion and rebranding

In 2003, Mobile Telecommunications Company (MTC), Zain's predecessor, launched its aggressive international expansion strategy, leveraging profits from its dominant position in to fund acquisitions and license bids across the . This shift marked a departure from its Kuwait-centric focus, aiming to establish a regional presence through strategic entries into high-growth markets. The strategy was facilitated by a partnership with , which provided technical expertise and branding support for initial ventures. Key milestones included the acquisition of a 91.6% stake in Jordan's Fastlink in January 2003, following an announcement in December 2002, positioning MTC as the leading operator in the kingdom. In Bahrain, MTC secured the second GSM license in April 2003 and launched commercial services as MTC-Vodafone Bahrain in December of that year. Concurrently, MTC entered Iraq by obtaining a temporary 24-month mobile license and commencing operations as MTC-Atheer in December 2003, becoming one of the first foreign investors in the post-conflict market. These moves rapidly expanded MTC's footprint, with the Jordan acquisition valued at approximately US$424 million and serving as a model for subsequent deals. In 2004, MTC secured a contract to operate one of Lebanon's two networks, launching services as MTC Touch. The contract was renewed multiple times, and in 2012, the brand was changed to Touch. By , MTC continued its growth with the acquisition of a in Saudi Arabia's third mobile license through a bid won in and awarded in , leading to the launch of services as Zain (formerly Mobile Saudi Arabia) in August 2008. To consolidate its growing portfolio, MTC rebranded all operations to Zain in September , creating a unified global identity that emphasized its multinational stature and supported further expansion, including early groundwork for entry into African markets. This rebranding affected entities in , , , , and immediately, with others following suit.

African operations and divestments

In 2005, Zain Group, then known as Mobile Telecommunications Company (MTC), acquired Celtel International for $3.4 billion, thereby entering the market and gaining operations in 14 sub-Saharan countries, including , , and . This expansion significantly broadened Zain's global presence, positioning it as the fourth-largest mobile operator worldwide by geographical footprint, with operations spanning 23 countries across the and . The acquisition integrated Celtel's approximately 5 million subscribers into Zain's portfolio, marking a strategic pivot toward pan-African growth. By 2008–2010, Zain's African operations had peaked, serving over 41 million subscribers across its sub-Saharan units and involving substantial investments in network infrastructure to enhance data services and coverage. For instance, in 2008, Zain launched 3.5G services in as part of a $420 million network rollout, exemplifying efforts to introduce high-speed mobile internet in key markets. These developments aligned with the 2007 group-wide of African subsidiaries from Celtel to Zain, unifying branding and operations under the Zain umbrella. Facing strategic pressures to refocus on core Middle Eastern markets, Zain initiated divestments in , culminating in the $10.7 billion sale of its Zain Africa BV subsidiary to , which encompassed operations in 15 countries, including and . The transaction, completed in June , transferred approximately 42 million subscribers and marked one of the largest cross-continental telecom deals at the time. Zain retained its longstanding operations in , originally established in 1997 as Mobitel and rebranded to Zain in 2007, along with the newly separated unit following the country's independence split in 2011. This partial exit allowed Zain to streamline its portfolio while maintaining a selective foothold.

Recent developments

In the years following its divestments from several African operations, Zain Group refocused its strategic priorities on the (MENA) region to drive growth in core markets. Zain entered the Moroccan market in by acquiring, through a with Al Ajial Investment Fund, a 31% stake in Wana Corporate (now ), currently holding 15.5%. Advancing its digital transformation, Zain launched ZainTech in October 2021 at GITEX in Dubai, establishing it as a dedicated digital services arm to unify the group's ICT assets and deliver enterprise solutions across MENA, with a primary emphasis on cloud computing and cybersecurity services. In 2025, Zain strengthened its technological partnerships by signing a Memorandum of Understanding (MoU) with Rakuten Symphony to pilot Kuwait's first cloud-native Open RAN deployment, utilizing virtualized distributed and central unit software to enhance 5G Standalone network flexibility. Complementing this, Zain announced investments in AI-driven initiatives during 2024 and 2025, including the rollout of AI-powered managed Security Operations (SecOps) services through ZainTech to bolster cybersecurity in hybrid cloud environments across the UAE, Saudi Arabia, and Jordan. Zain has also prioritized as a core pillar of its recent strategy, securing (SBTi) approval in January 2025 for its commitment to achieve net-zero across its by 2050, alongside near-term reductions in Scope 1 and 2 emissions. Supporting this goal, the company advanced green energy projects, including the deployment of and hybrid power solutions on towers in , which reduced CO2 emissions by 3.3% year-over-year as reported in 2023, and the installation of battery hybrid systems in , with plans for 119 additional units in 2025 to further decarbonize operations. Amid regional challenges, Zain demonstrated network resilience in during the 2023 conflicts by restoring mobile connectivity in just 18 days through cross-border collaboration and rapid deployment of alternative , enabling continued access to essential communication services despite widespread disruptions.

Corporate structure

Ownership and governance

Zain Group has been publicly listed on the (Kuwait Stock Exchange) under the ticker symbol ZAIN since its in 1994. The company's ownership is distributed among institutional and public investors, with major shareholders including the Oman Telecommunications Group holding 21.09%, the with 15.90%, and the Public Institution for Social Security at 5.50% as of early 2025. As of November 2025, Zain's is approximately $7.26 billion USD, supported by a free float of 51.65%. The governance framework of Zain Group is overseen by a comprising 10 members, including 9 non-executive directors and 2 independent directors, with terms of three years that are renewable. The board operates through key committees such as , and Nominations and Remunerations to ensure strategic oversight and . This structure aligns with Kuwaiti corporate laws and the principles of the Capital Markets Authority (), promoting , ethical conduct, and across operations. Zain demonstrates regulatory compliance through annual financial audits performed by Al-Qenae & Partners, with consolidated statements prepared in accordance with (IFRS) as issued by the . The company also adheres to ESG reporting standards, integrating factors into its board oversight and achieving an upgraded ESG rating of 'A' in October 2025. This commitment includes zero reported incidents or fines in 2024 and regular training on ESG principles for board members.

Leadership and management

Bader Nasser Al-Kharafi serves as Vice Chairman and Group CEO of Zain Group, a position he has held since March 2017, where he oversees the company's overall strategy, operations, and expansion initiatives across its markets in the and . Prior to this role, Al-Kharafi joined Zain's board in 2011 and was appointed Vice Chairman in 2014, bringing extensive experience from his family's conglomerate, the Kharafi Group, in sectors including and . Ossama Matta has been the Group since June 2010, responsible for managing Zain Group's financial operations, including budgeting, reporting, and . Matta, with over 23 years of experience in finance within the sector, previously held roles within Zain since joining in 2004 and serves on the boards of several subsidiaries. Under his leadership, the finance function has supported key financial milestones, such as sustained revenue growth and dividend policies. In November 2024, Mohammad Al-Marshed was appointed as Group , tasked with driving , innovation in network technologies, and the integration of advanced solutions across Zain's operations. Al-Marshed brings 22 years of telecommunications expertise, including prior roles in and operations at major regional operators, to advance Zain's rollout and cloud-based services. Zain Group's leadership extends to regional CEOs who manage country-specific operations while aligning with group-wide objectives. For instance, in , Eng. Saad bin Abdulrahman Al-Sadhan leads Zain KSA as CEO, focusing on market expansion and regulatory compliance in one of the group's largest operations. Similarly, Emre Gurkan serves as CEO of Zain Iraq, overseeing service delivery and infrastructure development in a key African-adjacent market. Recent leadership adjustments include the 2024 appointment of Mohammad Al-Marshed as Group CTO to bolster technological capabilities amid rapid digital evolution. Additionally, the group's 2024 re-elected key figures like as Vice Chairman, ensuring continuity while incorporating expertise in through board oversight. The appointment of executives, including the Chairman Osamah Othman Al Furaih in 2023 by the as the largest shareholder, reflects ownership's influence on strategic leadership selections.

Subsidiaries and affiliates

Zain Group's encompasses a network of subsidiaries and affiliates that enable its and digital services across multiple markets. The parent company, Mobile Telecommunications Company K.S.C.P. (operating as Zain in ), serves as the flagship entity with full control over Kuwaiti operations. Key fully owned or majority-controlled operating subsidiaries include Zain Sudan (100% ownership), providing mobile services in , and Zain South Sudan (100% ownership), focusing on similar services in amid challenging economic conditions. In , the group holds a 76% stake in Atheer Telecom Iraq Limited (via Al Khatem Telecoms Company), which operates Zain Iraq's mobile network. Other significant affiliates in the include Zain Jordan, controlled through a 96.5% stake in Investment Company, which manages services in . Zain Bahrain B.S.C. is majority-owned at 65.1%, delivering cellular in . In , the group exercises management control over Zain KSA (SMTC) with a 37% direct stake, supported by strategic agreements. For African expansion, Zain maintains a 15.5% stake in , Morocco's , through a that provides strategic influence without full consolidation. Beyond core telecom operations, Zain Group owns non-core units focused on digital innovation. ZainTech Solutions FZ-LLC, 100% owned and based in the UAE, specializes in network consultancy, solutions, , , and services for enterprise clients across the MENA region. Zain Business, the group's enterprise solutions arm, offers B2B services including managed , cybersecurity, and connectivity tailored to business needs, leveraging the broader . These units enhance group capabilities in high-growth areas like and infrastructure, with Zain Fintech Holding (100% owned) supporting electronic payment services through subsidiaries such as (83.4% stake). Inter-group synergies are central to the structure, including centralized for cost efficiencies, shared technological for seamless service delivery, and roaming agreements that enable cross-border connectivity among affiliates. These mechanisms foster operational integration while allowing subsidiaries to adapt to local markets.

Operations

Services and products

Zain Group offers a range of mobile voice and data services, including prepaid and postpaid plans tailored to individual and business customers across its operating markets. These services encompass voice calling, , and mobile internet access, with prepaid options providing flexible, pay-as-you-go bundles and postpaid plans featuring unlimited minutes, data allowances, and device discounts. The company delivers high-speed connectivity through and networks, supporting data speeds up to several hundred Mbps in urban areas via its rollout. This enables seamless streaming, gaming, and for subscribers, with Advanced networks launched in key markets to enhance performance. In digital products, Zain provides Zain Cash, a mobile wallet service operating in markets including and , facilitating money transfers, bill payments, remittances, and digital transactions without traditional banking. The myZain app serves as a platform for managing accounts, recharging balances, and accessing personalized offers. Additionally, Zain offers solutions for enterprises through ZainTECH, including connectivity for device monitoring, , and smart metering to optimize operations. Zain extends its portfolio to and fixed-line services, with fiber-to-the-home (FTTH) deployments in markets such as and to deliver reliable high-speed internet for residential and business use. In , these efforts support a growing base of fixed subscribers, including access options reaching hundreds of thousands of users. Value-added services include entertainment bundles through partnerships with , providing access to premium Arabic streaming content such as movies, series, and originals for Zain subscribers. Zain also offers solutions via ZainCloud and ZainTECH, enabling secure , computing resources, and hybrid infrastructure for customers seeking tools.

Technological infrastructure

Zain Group's technological infrastructure supports its operations across multiple markets through extensive mobile network deployments, emphasizing high-speed connectivity and . In core markets such as and , the company has achieved significant population coverage, with Zain KSA reaching 94% for and 65% for as of 2024, while continuing expansions into 2025. In , Zain provides nationwide 5G Advanced coverage across most of the country following its 2025 launch, building on the initial commercial rollout in 2019 that covered over 90% of populated areas by year-end. Zain similarly launched commercial services in 2019, with the first 5G standalone network in 2022, enhancing capacity for data-intensive applications. In , Zain has prepared for through virtual 5G-ready networks since 2021, though full commercial deployment remains in planning stages amid national discussions. The company invests substantially in capital expenditures to expand and optimize its . For the first half of , Zain Group allocated $397 million in CAPEX, equivalent to 11% of revenue, directed toward network enhancements including AI-driven optimization and capabilities to improve efficiency and support growing data demands. These investments facilitate seamless service delivery, such as enhanced , across its footprint. Key technologies underpin Zain's network resilience and scalability. In 2025, Zain partnered with to deploy the country's first cloud-native Open RAN solution, utilizing virtualized distributed and central units for standalone sites, aiming to reduce costs and foster vendor diversity. The group also relies on robust backhaul infrastructure, including optic networks integrated with partnerships like the Regional Cable Network (RCN), a high-capacity route spanning initial phases of 5,000 connecting key regions. In challenging terrains, such as , Zain maintains over 300 sites for , , and coverage, supplemented by strategic expansions to ensure connectivity in remote areas. Innovation drives ongoing advancements, with Zain's Innovation Campus (ZINC) in serving as a central R&D hub for like and applications in . ZINC supports -powered startups through funding and logistical aid, including a 2025 investment in an platform via the internal ZAINIAC program, fostering developments in network automation and digital services.

Regulatory environment

Zain Group operates under the oversight of national regulators across its markets, ensuring compliance with local licensing, allocation, and operational standards. In , the Communication and Information Technology Regulatory Authority (CITRA) supervises Zain's activities, including the allocation of ; for instance, CITRA granted Zain 100 MHz in the 3700-3800 MHz band in the first quarter of 2023, enabling the launch of services later that year. In , the Communications, Commission (CITC), formerly known as the Communications and Commission, regulates Zain KSA's usage, with the company securing additional 600 MHz band in November 2024 to enhance Standalone services. In , the Communications and Media Commission (), often referred to in regulatory contexts as the primary authority akin to a TRA, manages Zain Iraq's operations and compliance, addressing challenges such as limited availability. Regulatory frameworks vary significantly by region, presenting diverse compliance demands for Zain. In Jordan, the Personal Data Protection Law (PDPL) of 2023 imposes strict requirements on data processing, granting individuals rights to protect their personal information and mandating explicit consent for data handling; Zain Jordan is actively assessing risks to personally identifiable information (PII) and developing policies to align with this legislation, which took effect in March 2024. In contrast, Sudan faces regulatory disruptions due to ongoing conflict, where armed groups have imposed telecommunications blackouts; Zain Sudan experienced forced service interruptions in areas like River Nile state and Port Sudan in early 2024, as reported by government sources, complicating compliance with standard telecom regulations amid humanitarian access challenges. Zain's licensing history reflects strategic adaptations to regional requirements. In , Zain Iraq's license was renewed in July 2020 by the for an additional eight years until August 2030, following the company's commitment to network enhancements including services. In , where Zain entered the market in 2009 through a acquiring a stake in Wana Telecom, ongoing (FDI) approvals are managed by the National Office of Telecommunications (ANRT), supporting Zain's infrastructure investments amid Morocco's broader FDI inflows, which reached $4.3 billion in 2024. To influence policy, Zain actively participates in the , endorsing initiatives like the 2020 Principles for Driving the Digital Inclusion of Persons with Disabilities, which guide member operators in designing accessible services and advocating for equitable connectivity policies across operating markets. This engagement supports Zain's efforts to promote digital inclusion, including for vulnerable groups, through collaborative policy advocacy.

Geographical presence

Middle East markets

Zain Group's operations in the form a core pillar of its business, spanning , , , , , and , where it provides mobile voice, , and services to a combined customer base exceeding 38 million as of September 2025. These markets benefit from Zain's investments in infrastructure and digital services, driving revenue growth amid regional economic stability and high (ARPU). In 9M 2025, Middle East operations contributed significantly to the group's overall revenue expansion, with strong performance in and segments despite varying regulatory and competitive landscapes. Kuwait serves as Zain's flagship market, where it operates as the incumbent pioneer since 1983 and maintains market leadership with approximately 2.6 million subscribers. The operation reported Q3 2025 revenue of KD 99 million (USD 323 million), up 5% year-over-year (YoY), driven by a 4% increase in revenue, which accounted for 36% of . For 9M 2025, net income reached KD 60 million (USD 196 million), underscoring sustained profitability in this mature, high-ARPU environment. Zain leads in 5G-Advanced adoption, enhancing premium services for consumers and businesses. In , Zain has grown its presence since the 2007 acquisition of the former Vatel brand, focusing on rollout and solutions to serve 8.6 million subscribers. Q3 2025 revenue climbed 6% YoY to USD 733 million, with contributing 40% of and for 9M 2025 rising 16% to USD 99 million. The company has expanded coverage to 67% of the population, supporting initiatives and achieving a of around 25% in a highly competitive landscape dominated by larger incumbents. Zain's operations in Iraq and Jordan together serve about 24.7 million subscribers, navigating security challenges in while capitalizing on data demand in both markets. In , Zain holds market leadership with over 50% share and 20.4 million subscribers, up 5% YoY; 9M 2025 revenue surged 18% to USD 942 million, with up 21% to USD 113 million and an EBITDA margin of 38%, fueled by 20% Q3 revenue growth to USD 342 million despite ongoing instability. Jordan, with 4.3 million subscribers (up 1% YoY) and market leadership, saw Q3 revenue rise 8% to USD 152 million, driven by 14% data revenue growth representing 54% of total, and 9M increasing 7% to USD 59 million. These markets highlight Zain's resilience, with Iraq's revenue up 21% in 9M 2025 amid strong data adoption. Bahrain and Lebanon represent smaller but strategically important markets, emphasizing premium and digital services with combined subscribers of around 4 million. In Bahrain, Zain reported Q3 2025 revenue of USD 52 million (up 3% YoY), with 9M net income at USD 11 million (up 3%) and data comprising 46% of revenue, supported by robust 5G deployment in this high-income Gulf economy. In Lebanon, Zain manages the mtc touch network under a government agreement, serving 2.6 million subscribers as of July 2025—the highest in the operator's history—while focusing on network reliability and roaming partnerships to bolster connectivity amid economic challenges. These operations leverage shared regional expertise for efficient service delivery.

African markets

Zain Group's operations in Africa have been streamlined following the 2010 sale of most of its continental assets to for $10.7 billion, retaining full ownership in and while maintaining a 15.5% stake in Morocco's through a established in 2015. This divestment allowed Zain to focus resources on these core markets amid ongoing challenges such as political instability and limitations, with targeted investments in rural to bridge divides. In Sudan and South Sudan, Zain operates as a leading mobile provider, serving a combined customer base where Sudan alone reported 12.2 million subscribers as of the third quarter of 2025, reflecting a 39% year-over-year increase despite regional conflicts. Zain Sudan's revenue surged 87% year-over-year in the second quarter of 2025 to $133 million, driven by recovery efforts and a focus on resilient services like via the newly launched digital wallet platform, which enables cashless transactions and bill payments for users. In South Sudan, operations emphasize network expansion, including a 271 km backhaul link completed in 2025 to enhance connectivity in remote areas like and . These markets face unique volatility, yet Zain's net income in Sudan for the first nine months of 2025 grew 92% to $171 million, underscoring operational adaptability. Zain's 15.5% stake in positions it within Morocco's competitive telecom landscape, where holds approximately 33.2% of the 58.75 million subscriptions as of mid-2025, attributing roughly 3 million subscribers to Zain on an equity basis. The partnership has supported network rollout since 2015, contributing to steady growth in services amid Morocco's high penetration of 90%. Key growth drivers across these African holdings include digital targeting underserved populations, with initiatives like promoting through mobile wallets. Data usage has risen notably, supported by rural investments that extend coverage to remote communities, fostering a 14% year-over-year increase in group-wide revenues as of mid-2025. These efforts highlight Zain's strategy to leverage digital innovation for sustainable expansion in volatile environments.

Financial performance

Historical overview

Zain Group, originally established as Mobile Telecommunications Company (MTC) in in 1983, began with modest financial operations focused on domestic mobile services. During the , revenues remained in the low hundreds of millions of USD, primarily driven by Kuwaiti operations with limited regional presence. Expansion into other Middle Eastern markets accelerated growth, with consolidated revenues reaching USD 1.98 billion by 2005. The 2007 to Zain marked a pivotal shift, coinciding with international acquisitions and operational scaling that propelled annual revenues to USD 5.91 billion, a 32% increase from 2006. The late 2000s saw Zain's aggressive push into markets, which significantly boosted scale and diversified streams. This expansion contributed to a peak of USD 8.05 billion in , up 16% from USD 7.44 billion in 2008, with operations accounting for nearly half of total group . However, mounting from these ventures prompted a strategic pivot; in , Zain divested its assets (excluding and ) to for USD 10.7 billion, yielding a of USD 2.65 billion that funded substantial reduction and strengthened the balance sheet. Consolidated for stood at USD 4.72 billion, reflecting the divestment's immediate impact. Post-2010, Zain refocused on its core (MENA) footprint, emphasizing cost efficiencies and digital service enhancements amid a stabilizing regulatory landscape. This strategic realignment led to improved profitability metrics, with EBITDA margins reaching approximately 39% by the first nine months of 2015, up from lower levels in the early post-divestment years, driven by revenue growth in like and . Notable financial milestones during this period included the 2008 (IPO) of Zain , which raised approximately USD 4.75 billion and marked a major capital infusion for regional expansion, as well as the group's unwavering commitment to returns through consistent payments annually since 2000. This historical trajectory of , strategic , and operational refocus laid a foundation for sustained financial resilience through 2019, setting the stage for further growth in the subsequent decade. In 2024, Zain achieved record annual of KD 2 billion (USD 6.4 billion), a 3% year-over-year increase.

Recent financial highlights

In the first nine months of 2025, Zain Group achieved consolidated of $5.4 billion, marking a 15% increase year-over-year (YoY). Consolidated EBITDA reached $1.8 billion, with an EBITDA margin of 33%, while net profit rose 31% YoY to $581 million. These results reflect the group's sustained focus on and market amid regional economic dynamics. Key growth drivers included data services, which accounted for 46% of , underscoring the shift toward and data consumption. Capital expenditures (CAPEX) were maintained at 14% of revenue, equating to approximately $1 billion on an annualized basis, supporting network upgrades and rollout. () for the third quarter of 2025 stood at $0.13, highlighting improved profitability per share. Major markets contributed significantly to the group's performance, with and together generating 60% of revenue. In , net profit increased 7% in the 9M period, driven by subscriber growth and enhanced service penetration. Zain Group's financial position remained solid, with a net debt-to-EBITDA of approximately 2.2x as of mid-2025. reserves stood at approximately $1.0 billion, providing ample liquidity for ongoing investments and potential dividends. This stability has been bolstered by prior divestments that streamlined operations.

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