Saudi Arabia’s second-biggest telecom operator Mobily has asked for arbitration about money it claims it is owed by smaller rival Zain Saudi, Mobily said on Tuesday.
Mobily in 2008 signed an agreement with Zain Saudi, an affiliate of Kuwait’s Zain, to provide services including domestic roaming and site sharing, according to a bourse statement.
Consequently, Zain Saudi owed Mobily – also known as Etihad Etisalat and an affiliate of Abu Dhabi-listed Etisalat – SAR2.2 billion ($586.21 million) as of Nov. 30, 2013, the statement said.
Mobily received irregular payments from Zain Saudi, the statement added. The statement did not say how much money Mobily was seeking from Zain Saudi via arbitration.
“Mobily could not reach an amicable settlement with Zain Saudi,” the statement added. “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.”