|By Arabian Post Staff| UAE telecom major Etisalat suffered a setback in its claim against its estranged Saudi partner Zain, when the arbitration panel dealing with the dispute between the two parties awarded the leading UAE player just 10 percent of the 2.2 billion Saudi riyal it had claimed as compensation.
Last week the arbitration panel announced its judgment alloating Mobily SAR 219 million, amounting to less than 10% of its claim.
Hassan Kabbani, CEO of Zain Saudi Arabia expressed satisfaction at the verdict and said the judgement brings to an end this legacy issue that has overshadowed both companies, and indeed the entire telecommunications sector in the Kingdom.
He pointed out that as Zain maintained adequate financial provision to cover the compensation amount, it ill have no additional impact on the company’s net earnings.
The arbitration proceedings commenced in December 2014 following a formal claim by Mobily for SAR 2.2 billion from Zain. Zain rejected the claim, stating that it arose from Mobily’s unilateral revocation of amendments to the 2008 Services Agreement, agreed between the parties.
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