Etihad Etisalat Company (Mobily) announces that it has requested referral to arbitration with regard to Mobily due receivable amounts resulted from the Service Agreement signed with Zain KSA on 6 May 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic. Mobily announces that both parties have appointed their respective arbitrators, and also, appointing an umpire is under process.
Mobily could not reach an amicable settlement with Zain KSA company although, a lot of good will startups were provided from Mobily side. Accordingly, and for the purpose to protect Mobily rights, Mobily decided to revert back to arbitration as per the Arbitration Rules and Regulations and in accordance with the said Service Agreement.
As a result of the aforementioned agreement, an amount of SAR 2.2 billion was due to Mobily as of 30 November 2013 which Mobily tried to reach an amicable settlement with Zain KSA since then. Mobily has already provided a total amount of SAR 1.1 billion against total receivables due from Zain KSA as of 30 October 2014, according to the Company respective policy which was gradually provided since November 2009. The aforementioned agreement is still valid and Mobily is receiving irregular payments from Zain KSA for the services provided.
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