Zain Saudi, Saudi Arabia’s No.3 telecom operator, said on Tuesday that a SAR2.2 billion ($586.28 million) claim from Mobily was unfounded after its larger rival sought arbitration for this amount, plus damages.
Saudi Arabia’s market regulator suspended share trading in both companies following Mobily’s morning announcement that it was taking Zain Saudi to arbitration in relation to a 2008 services agreement between the operators.
Zain Saudi later issued its own statement in which it said Mobily’s claim for SAR2.2 billion was unfounded and Zain Saudi owed Mobily only SAR13 million. Zain Saudi added that Mobily was also seeking SAR58.7 million in damages.
