Saudi Zain submits response in SAR 2.2 bln dispute with Mobily

Mobile Telecommunications Company Saudi Arabia (ZAIN KSA) submitted Monday to the arbitration committee its response regarding a SAR 2.2 billion legal dispute with Etihad Etisalat (Mobily), the company said in a statement to the Saudi bourse, Tadawul.

A dispute has started between the two companies over the application of a 2008 contract under which Mobily would provide services, including domestic roaming and site sharing, to Zain Saudi--an affiliate of Kuwait’s Zain--which began commercial operations that year.

Mobily, the second-largest mobile operator in Saudi Arabia, said last month it had increased provisions for “Zain account receivables” by SAR 800 million.

Mobily is required to respond within one month after receiving Zain’s legal documents.