Zain Group, a prominent telecommunications operator in the Middle East and North Africa, has recently disclosed a substantial investment of nearly $1 billion in its network expansion and infrastructure. The capital expenditure (Capex) of USD 994 million represents 16 percent of the company’s revenue and is primarily directed towards the deployment of 4G and 5G networks, expansion of fiber-to-the-home (FTTH) infrastructure, and spectrum license fees.
In its financial report for the full-year 2023, Zain Group reported impressive growth figures, with a revenue of KD 1.9 billion (equivalent to USD 6.2 billion), marking a significant increase of 10 percent compared to the previous year. The fourth quarter (Q4) of 2023 also showcased strong performance, with revenue reaching KD 494 million (USD 1.6 billion), reflecting an 8 percent increase from the same period in the previous year.
Key operational highlights include a notable 8 percent growth in data revenue, amounting to USD 2.4 billion, which constituted 39 percent of the Group’s total revenue for the year. Zain Group also finalized agreements with Ooredoo Group and TASC Towers to establish the largest tower company in the MENA region, valued at USD 2.2 billion, encompassing nearly 30,000 towers across six countries.
Strategic initiatives such as tower sales and leaseback arrangements in key markets like Saudi Arabia, Kuwait, Jordan, and Iraq have contributed to operational efficiencies and increased net profit. Notably, 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, signaling the company’s commitment to enhancing its technological capabilities. Digital services revenue also experienced a significant 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.
Customer base expansion highlights include a 4 percent increase for Zain Kuwait, reaching 2.7 million customers, and a 3 percent rise to serve 8.9 million customers for Zain Saudi Arabia. Zain Jordan maintained its market-leading position with a 3 percent growth in customer base, reaching 3.9 million customers, while Zain Bahrain reported a 7 percent increase in revenue, reaching USD 192 million.
The robust financial performance and strategic initiatives of Zain Group underscore its position as a leading telecommunications provider in the region, with a strong focus on network expansion and technological advancements.
