Zain Saudi Arabia believes it has no case to answer regarding Mobily’s accusations

Zain Saudi Arabia confirmed it received a request, dated November 16, from a representative of Mobily to commence arbitration procedures in relation to Mobily’s demand that Zain pay Mobily the amount of SAR2.21 billion (US$587 million), which Mobily alleges that Zain owes it under a services agreement, dated May 6, 2008, entered into between Zain and Mobily. The latter also demands that Zain compensate Mobily for damages allegedly suffered by Mobily, in the amount of SAR58.7 million, as a result of non-payment of the alleged amounts due.

In a statement Zain commented that it does not understand the basis for Mobily’s arbitrary demands, given that it has requested Mobily to explain its position for some time. Zain further commented that it has used Mobily’s network pursuant to the agreement, and it has always reviewed the demands sent by Mobily that are supported by documentation. In its opinion Zain has always settled payments in a timely fashion, except for a currently outstanding amount of approximately SAR13 million, according to its unaudited records.

Zain does not consider that the agreement enables this dispute to be subject to arbitration.