Zain Invests Nearly $1 bn in Network Expansion and Infrastructure

Zain Group, one of the leading telecommunications operators in the Middle East and North Africa, has announced a substantial investment in its infrastructure, with capital expenditure (Capex) reaching USD 994 million.
This investment, which represents 16 percent of the company’s revenue, is primarily focused on the rollout of 4G and 5G networks, as well as the expansion of fiber-to-the-home (FTTH) infrastructure and spectrum license fees.

In its financial report for the full-year 2023, Zain revealed impressive growth figures. The company generated revenue of KD 1.9 billion (equivalent to USD 6.2 billion), marking a notable increase of 10 percent compared to the previous year.

For the fourth quarter (Q4) of 2023, Zain Group reported revenue of KD 494 million (USD 1.6 billion), up 8 percent from the same period last year.

Key operational highlights include a significant growth in data revenue, which rose by 8 percent to reach USD 2.4 billion, constituting 39 percent of the Group’s total revenue for the year. Additionally, Zain Group finalized agreements with Ooredoo Group and TASC Towers to establish the largest tower company in the MENA region, valued at USD 2.2 billion, boasting nearly 30,000 towers across six countries.

Moreover, strategic initiatives such as tower sales and leaseback arrangements in key markets such as Saudi Arabia, Kuwait, Jordan, and Iraq have contributed to operational efficiencies and increased net profit. Zain Jordan and Zain Saudi Arabia achieved milestones by launching 5G services, with the latter introducing the world’s first zero-carbon 5G network in the Red Sea region.

Furthermore, ZainTECH, a subsidiary of Zain Group, acquired STS, a prominent regional provider of digital transformation solutions, indicating the company’s commitment to enhancing its technological capabilities. Digital services revenue also witnessed a notable growth of 9 percent, supported by platforms like Dizlee (API), which offers 81 live services and has facilitated over 275 million API transactions since its launch in mid-2018.

In terms of customer base expansion, Zain Kuwait experienced a 4 percent increase, reaching 2.7 million customers, while Zain Saudi Arabia served 8.9 million customers, marking a 3 percent rise. Zain Jordan maintained its market-leading position with a 3 percent growth in customer base, reaching 3.9 million customers. Zain Bahrain also reported a 7 percent increase in revenue, reaching USD 192 million.

Overall, Zain Group’s robust financial performance and strategic initiatives underscore its position as a leading telecommunications provider in the region, with a strong focus on network expansion, technological innovation, and customer satisfaction.