Zain’s results are below requirement for refinance, auditor

The financial results of Mobile Telecommunication Co. Saudi Arabia (ZAIN), the country’s third-largest mobile company by number of subscribers, are below expectations and do not qualify the company for getting a sharia-compliant financing or murabaha, according to the auditors report.

The company’s plan was not executed but that does not hamper the company’s ability to honor its commitments under such plan, it added.

Zain believes that such issues are of temporary nature and it won’t affect the company’s ability  to conduct its activities.

Zain Saudi posted SAR 963 million losses (SAR 0.89 a share) in the first 9 month of the financial year. The accumulated  losses in the 3rd quarter reached 43 percent of the company’s capital.

Zain Saudi is 37 percent owned by Kuwait’s Zain.