Zain Group forced to pick up Zain Saudi’s tab to Motorola

Zain Group has paid SAR867.8 million (US$231.4 million) to Motorola on behalf of its Zain Saudi unit to cover costs related to a contract entered by the operating cellco with the US firm.

Zain said it made the payment on December 12 to alleviate the financial burden from its Saudi unit and to support the company’s operations.

Zain Saudi has not made a quarterly net profit since launching operations in 2008 and extended the maturity of a SAR9 billion Islamic loan for another 21 days last month.

According to the statement, the amount paid covers services that Motorola provided the Zain Saudi in 2009 and agreed to pay at a later stage.