Zain Group's vice-chairman and chief executive, Bader Al-Kharafi, says the company will be offering %g services in 26 Saudi cities by the end of the year. Courtesy Zain Group.
Zain Group's vice-chairman and chief executive, Bader Al-Kharafi, says the company will be offering %g services in 26 Saudi cities by the end of the year. Courtesy Zain Group.
Zain Group's vice-chairman and chief executive, Bader Al-Kharafi, says the company will be offering %g services in 26 Saudi cities by the end of the year. Courtesy Zain Group.
Zain Group's vice-chairman and chief executive, Bader Al-Kharafi, says the company will be offering %g services in 26 Saudi cities by the end of the year. Courtesy Zain Group.

Technology

Zain in 'a much stronger' position as third quarter net profit doubles in Saudi unit

Zain Saudi Arabia chief says company's market capitalisation has doubled over the past 12 months

Michael Fahy
Michael Fahy

October 26, 2019

  • English
  • Arabic

The chief executive of telecoms company Zain said the company is now "in a much stronger financial position" after its Saudi Arabian arm posted its fifth successive quarterly profit.

Net profit for the three months to September 30 more than doubled to 121 million Saudi riyals (Dh118.5m) as revenue climbed 3 per cent to just over 2 billion riyals. The company's bottom line was also boosted by a reduction in the royalty fee telecoms firms pay on profits to the government to 10 per cent, from 15 per cent, and a decline in other operating costs.

"The impressive operational performance in reporting five consecutive quarters of profit clearly demonstrates the success of the company's digital growth strategy that has placed the company in a much stronger financial position and also seen its market capitalisation more than double over the last 12 months," said Bader Al-Kharafi, group chief executive and vice-chairman. The company's market capitalisation stood at just over 7.75bn riyals at the end of last week.

Read More

Zain Saudi joins forces with Alibaba to launch cloud network in the kingdom

Zain Saudi Arabia in talks with kingdom's Finance Ministry to convert debt to equity

Zain is a Kuwait-based mobile phone group whose Saudi arm is one of the three main mobile network operators in the kingdom. The company suffered losses last year as subscriber numbers dwindled following the introduction of new levies on expatriate workers and their families.

Revenues have picked up substantially since though, and were 12.4 per cent higher year-on-year for the first nine months at 6.16bn riyals, meaning it made a net profit of 380m riyals for the period, compared to a 67m loss in the same period last year.

Mr Al Kharafi expressed optimism that the recent turnaround in the company's fortunes would continue, citing the first-phase launch of commercial fifth-generation (5G) services, which it has rolled out to 23 cities, with three more expected to be added by the end of the year.

"Zain KSA will also rely on 5G technology to enhance IoT (Internet of Things), smart city and digital payment services in the near future. This reflects the company's commitment to encourage innovation and stimulate the development of new sectors in the Kingdom that open the door to a new era of economic growth and enhance job creation opportunities for Saudi youth," Mr Al-Kharafi said.

Plastic tipping points
The years Ramadan fell in May

1987

1954

1921

1888

The national orchestra
The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
More from Neighbourhood Watch
Neighbourhood Watch
Copa del Rey

Barcelona v Real Madrid
Semi-final, first leg
Wednesday (midnight UAE)

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

On Women's Day
Technology