Mobily signs new technical services deal with UAE’s Etisalat

Etihad Etisalat Co. (Mobily) signed on Monday a five-year technical services and support agreement with its founder Emirates Telecommunications Group Company PJSC (Etisalat Group).

The new deal supports Mobily’s business development and improves its operating efficiency, Mobily said in a statement to the Saudi bourse.

It also includes common procurement initiatives leveraging the scale of Etisalat, digital transformation, knowledge sharing and benefiting from Etisalat Groups economies of scale.

Mobily added that the new agreement is mostly performance based and will not have material financial impact on its financial results.

Last December, Mobily said it will not renew a management agreement with Abu Dhabi-based Etisalat Group as the telco achieved a growth level that allows it to be more flexible, Argaam earlier reported.

Etisalat owns a 27.4 percent stake in Mobily, which is Saudi Arabia’s second largest mobile operator.