Zain to invest $1.5bn in Syria mobile network upgrade
Kuwaiti telecoms company Zain Group will invest more than $1.5 billion to develop a mobile network in Syria.
Zain was awarded a 25-year licence (20 years plus an extendable five-year term) by Syria’s communications ministry for $747 million to operate the existing network of South Africa-based MTN Group.
MTN completed its exit from Syria in March. Its current customer base is 6.3 million.
Zain said in a statement that it will set up a new operating entity in Syria in which it will hold a 75 percent stake, while a Syrian government entity will hold the remaining 25 percent.
Zain Syria is expected to launch in the first quarter of 2027, subject to completion of regulatory and licensing conditions.
As part of the deal, the Zain Syria entity will invest more than $800 million to expand and modernise the network with 5G and other artificial intelligence-powered digital technologies during the next decade.
The early phases of the modernisation plan target more than 98 percent of the population. The upgrade will be funded by financial resources generated from the Syrian operation.
Zain CEO Bader Al-Kharafi said the expansion in Syria strengthens the company’s presence in the Levant and enhances regional connectivity by enabling cross-border digital services.
It currently operates across eight markets in the Middle East and Africa, serving 51 million customers.
Oman’s Omantel owns a 21.9 percent stake in Zain, while 16 percent is held by the Kuwait Investment Authority.
The stock closed 0.7 percent higher at KD610 on Boursa Kuwait on Tuesday, rising nearly 15 percent so far this year.
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