Etihad Etisalat (Mobily) said in a statement to Tadawul website that it has requested referral to arbitration with regard to its due receivable amounts resulted from the service agreement signed with Saudi Zain on May 6, 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic.
Mobily said both parties have appointed their respective arbitrators, adding that appointing an umpire is under process.
Mobily could not reach an amicable settlement with Zain 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 November 30, 2013 which Mobily tried to reach an amicable settlement with Zain since then.
Mobily has already provided a total amount of SAR 1.1 billion against total receivables due from Zain KSA as of October 30, 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 for the services provided.