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Zain Group holds AGM with a quorum of 79.2%; Assembly approves extension of a minimum 35 fils dividend policy for another 3 years until 2028

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KUWAIT CITY, Apr 16: The Zain Group Annual General Meeting(AGM) was held at the Zain Group’s ‎headquarters in Kuwait, attended with a quorum of 79.2% of shareholders whereby they were presented with ‎the Zain Group’s 2024 annual report entitled “Better Lives, Lasting Connections” which highlights the financial ‎statements, Governance and Auditors reports and the major achievements of Zain Group and its operations ‎and subsidiaries across Middle East and Africa, for the year ended December 31, 2024. Additionally, Zain Group ‎released its 2024 Sustainability Report entitled “The New Paradigm Shift”. ‎

The shareholders approved all items on the AGM agenda, including the recommended cash dividend of 25% ‎‎(25fils per share) to the shareholders already registered in the company’s record date of Sunday, 4 May 2025. ‎Cash dividends will be paid to shareholders commencing Wednesday, 7 May 2025. Notably, the Assembly also ‎approved the extension of a minimum 35 fils dividend policy for another 3 years until 2028.‎

Attractive dividends for Shareholders

This 25filsdividend for H2 2024 follows the semi-annual dividend of 10 fils distributed earlier in 2024, totaling 35 ‎fils per share for the year and reflecting a 73% payout ratio, one of the highest in the region.Total cash dividends ‎for 2024 amounted to KWD 151.4 million ($492 million). In 2023, Zain adopted a minimum cash dividend policy of ‎‎35 fils per share for three years that has now been extended till 2028.‎

Solid Financial Performance during 2024‎

‎2024 was a defining year for Zain in growing the business and increasing shareholder value despite socio-‎economic challenges (primarily Sudan) across the company’s footprint. The implementation of numerous ESG ‎initiatives as well as the acceleration of digital transformation and revenue growth from new business verticals ‎have future-proofed Zain and prepared the company for the next phase of growth.‎

During the AGM, Zain Group presented its financial results for the full-year 2024, whereby the company served ‎‎49 million customers.For FY-24, Zain Group generated consolidated revenue of KD 2 billion (USD 6.4 billion), up ‎‎3% YoY, a 15-year high. Consolidated EBITDA for the period reached KD 689 million (USD 2.25 billion), with ‎normalized EBITDA growth of 2% (excluding number range claim in 2023), reflecting an EBITDA margin of 35%. ‎Consolidated net income reached KD 208 million (USD 677 million), representing normalized net income growth ‎of 15%, when adjusted for number range claim and Tower transaction gain in 2023 and gain on business ‎combination from acquisition of IHS (Kuwait TowerCo) in 2024. Earnings per share amounted to 48 fils (USD ‎‎0.16). ‎

Excerpts from the Board of Directors statement at the AGM

The Board of Directors welcomes all shareholders and affiliated parties to the Annual General Assembly of Zain ‎Group.‎

Over the past year, Zain has reaffirmed its regional position as an innovative ICT and digital lifestyle provider, ‎playing a major role in shaping digital economies in markets across the Middle East and Africa. The company’s ‎focus has been on enhancing financial inclusion, developing advanced fintech solutions, digital services and ‎building data infrastructure centers. Zain’s dynamic digital ecosystem has also focused on catering to meet the ‎growing demand for cloud services, cybersecurity, data analytics, and emerging technologies to empower ‎enterprises and government entities that provide the region’s markets with a solid foundation for this digital ‎economy. ‎

Zain Group is committed to implementing a solid framework model for corporate governance, with an emphasis ‎on enhancing its comprehensive governance environment. In this context, Zain was crowned World Finance’s ‎‎’Best Corporate Governance’ recipient 2024 for Kuwait for the fourth consecutive year. This excellence was ‎further highlighted by Zain’s recent upgrade to BBB in the recently issued Environmental, Social and Governance ‎Standards Index (MSCI ESG).‎

Zain Group’s ESG practices are consistently rated highly by S&P, MSCI, and FTSE rating agencies. ESG practices ‎are critical for stakeholders as they reflect the Group’s commitment to sustainability, and long-term, responsible ‎management.‎

On behalf of Zain Group Board Members, executive management, and employees, I would like to express our ‎combined sincere appreciation for the confidence shown in us by our valued customers and shareholders, as ‎well as by all the government ministries, and regulatory authorities across our markets of operation.‎

Excerpts from Zain Vice-Chairman and Group CEO, Bader Al Kharafi’sAGM statement

As a leading entity listed on Kuwait’s Premier market as well as having local listings in Saudi Arabia (KSA), Iraq, ‎and Bahrain, Zain has an unwavering commitment to drive profitable and sustainable growth, and create value ‎for all stakeholders. ‎

To achieve this, the Board and executive management have worked closely to overcome socio-economic ‎challenges in our markets, where we maximize value creation by investing heavily in our networks, ‎technologies, and people. We have succeeded in implementing future-focused strategies to drive forward the ‎evolution of digital ecosystems across the Group’s footprint, resulting in us extending our market leadership in ‎many highly competitive, evolving, and complex markets. ‎

From 4SIGHT to 4WARD

‎2024 witnessed the ongoing implementation of our 4SIGHT digital transformation strategy that delivered ‎significant milestones and solid performances across all our markets, driving sustainable growth and value to our ‎customers and stakeholders. ‎

In December 2024, we unveiled the ‘4WARD-Progress with Purpose’ corporate strategy to accelerate the ‎company’s evolution into a purpose-driven TechCo conglomerate providing ‘Better Lives and Lasting ‎Connections’.The strategy was formulated internally and builds on the significant momentum and ‎transformational accomplishments achieved under the previous 4SIGHT corporate strategy.‎

‎4WARD comprises four primary forces, each with three accelerators (thus 12 key accelerators in total) to meet ‎the ever-growing demand for superior and dynamic consumer and enterprise services. These four forces – ‎Customer Delight; Digital Zain; Purpose and Action; and Collaborative Growth – will focus on continuity, ‎acceleration, collaboration and digital innovation, all designed to foster value creation by fast-tracking Zain’s ‎evolution from a predominantly mobile centric operator into a purpose driven, customer-centric, future-proof, ‎and impactful leading regional TechCo. ‎

We are confident that 4WARD will build on the success of the 4SIGHT strategy and provide the necessary ‎impetus for Zain’s continued evolution, growth, relevance, and impact on shaping societies and drive the Zain ‎brand value to even greater heights. ‎

CAPEX investments in network expansion and cutting-edge technologies is driving revenue growth and ‎improving mobile and data experience for customers

During the year, Zain enhanced its operational capabilities significantly through substantial capital expenditure ‎‎(CAPEX) amounting to USD 1.1 billion (reflecting 17% of revenues), which primarily focused on expanding the ‎company’s 4G and 5G networks, as well as enhancing fiber-to-the-home (FTTH) infrastructure. ‎

This has driven revenue growth in profitable areas such as our Enterprise and Government businesses, as well ‎as in our digital services to consumer offerings across our footprint. ‎

Our state-of-the-art networks are empowering the spectacular growth of all the new business verticals, ‎including Fintech, ZainTECH, ZOI, FOO and Dizlee, generating additional revenue of USD 253 millionin 2024, which ‎reflects revenue growth of 130% YoY. Consolidated data revenue reached USD 2.44 billion, representing 38% of ‎the Group’s 2024 revenue.‎

The main impact of our CAPEX investment is the massive enhancement that it provides mobile and data ‎experience for individuals, businesses and government clientele.‎

Numerous achievements of the 4SIGHT strategy (2019-2024) have future-proofed Zain

This solid 2024 performance can be attributed to the successful implementation of the ‘4SIGHT’ corporate ‎strategy that was born in 2019 and concluded in December 2024, achieving its aim to transform the company into ‎a multi-faceted provider of digital services for consumers, governments, and businesses. 4SIGHT was based on ‎two strategic directions, centered on evolving Zain’s core telecom business to maximize value and leverage the ‎company’s many strengths to invest in selected high-growth verticals beyond standard mobile services.‎

Since then, 4SIGHT has successfully steered Zain’s transformation from being a mobile-centric company to a ‎multi-faceted organization, successfully transforming its fixed and mobile services, and expanding into several ‎new business verticals including ICT, Digital Mobile Operations, Fintech, Entertainment, Digital Infrastructure, ‎Subsea and Cross-Border Connectivity, and more.‎

Landmark achievements concluded under 4SIGHT among many others include the creation of:‎

‎1. ZainTECH, : the Group’s regional ICT and Digital Solutions arm was established in 2021, positioning Zain as a ‎key player in the digital transformation of enterprises and governments across the region. ‎

‎2. Fintech: Zain launched fintech offerings across several markets, gaining strong market traction with Tamam, a ‎microfinance play in KSA, Bookey in Kuwait, and Bede in Bahrain, and the revamping of Zain Cash to become a ‎market leader in Jordan and Iraq.‎

‎3. Network Tower strategy: This created enormous value through the sale and leaseback deal of Zain towers in ‎KSA, Jordan, and Iraq over the years. The landmark merger of the tower portfolios of Zain and Ooredoo will ‎create the largest TowerCo in the region with over 30,000 towers. In December 2024, Zain increased its 30% ‎ownership in IHS Kuwait Limited to 100%. ‎

‎4. Zain Omantel International (ZOI): In partnership with Omantel, Zain established ZOI, a regional wholesale ‎powerhouse serving operators, international carriers, and hyperscalers. Notably ZOI was the highest-ranked ‎carrier network in the region, and top 100 worldwide, out of 70,000 active networks. ‎

‎5. Digital Operators: In KSA, under the Yaqoot brand, in Iraq under the oodi brand, and in Kuwait in partnership ‎with RedBull Mobile, we have cumulatively witnessed impressive customer and revenue growth. By delivering a ‎market-leading app-based experience targeting a younger audience, we provide digital-grade platforms to ‎digitize customer journeys to streamline processes.‎

‎6. Dizlee: Zain’s Group-wide dynamic API platform and digital monetization ecosystem offers innovative ‎entertainment and gaming solutions, direct operator billing, messaging, and digital authentication. ‎

The multiple digital transformational initiatives and expansion of new business verticals achieved under 4SIGHT ‎has driven business growth and positioned Zain firmly as a leading provider of innovative ICT and digital lifestyle ‎services, delivering meaningful connectivity that empowers societies. ‎

Zain’s Sustainability and climate change efforts are leading the region ‎

Zain maintains an unwavering commitment to integrating climate action into its corporate sustainability strategy, ‎which was first announced in 2020, paving the way for a resilient, low-carbon future while addressing the ‎pressing environmental challenges facing the Middle East and North Africa (MENA) region.‎

Building on the foundation of its five-year corporate sustainability strategy, Zain made significant progress in ‎‎2024, as it marked a pivotal step in the company’s journey toward establishing long-term sustainable value for all ‎stakeholders by accelerating its climate action agenda. Zain submitted and received approval on its Net-Zero ‎targets from the Science-Based Targets initiative (SBTi), reflecting the company’s dedication to a Net-Zero ‎economy and making Zain the only Kuwaiti-based corporate to have its emission reduction targets verified by ‎the SBTi.‎

The powerful and admired Zain brand is a key aspect of the company’s success

Our efforts in every aspect of the business resulted in a 14.5% YoY increase of Zain’s brand value to USD 3.5 ‎billion (according to the BrandFinance 2025 rankings), ranking it among the top 25 strongest telecom brands and ‎top 40 most valuable telecom brands globally. The continual growth in our brand valuation and rankings some 18 ‎years after the initial Zain brand launch in September 2007 is testament to the passionate actions, services, and ‎investment the company has placed in establishing its name and identity. ‎

The innovative media campaigns, numerous corporate sustainability, inclusion, diversity, and equity (IDE) ‎initiatives Zain has instituted over the years have won us the hearts and minds of our customers and ‎employees, which are key drivers for the Zain brand’s value success.‎

Today, we have a social media following exceeding 35 million, and annually, we count over 200 million YouTube ‎views of our creative videos, with many of them going viral.‎

Conclusion

On behalf of the executive management team, I would like to extend my sincere thanks to the talented 8,000-‎strong Zain workforce, our 49 million individual customers and other corporate clientele and government ‎bodies, all of whom contribute to the Zain ecosystem and our success in providing meaningful connectivity to ‎the communities we serve. ‎

Our focus for 2025 will be on executing our ‘4WARD-Progress with Purpose’ corporate strategy, accelerating our ‎evolution to a TechCo through investment in network expansion, digital technologies, strategic business ‎opportunities, and talent, in a collaborative and sustainable manner, to ensure the company reaps the rewards ‎of being at the forefront of digital transformation in the ever-growing mobile and ICT sector. This will take the ‎Zain brand to new heights.‎

Business

Essentials win, construction slides in H1 subsidy shuffle

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KUWAIT CITY, Aug 13: Subsidies for basic food supplies, milk and baby food, and construction materials increased by 0.9 percent during the first half of 2025, rising by KD 1.6 million compared to the subsidies for construction materials in the same period of 2024. The total value of subsidies reached KD 181.7 million, including KD 95.5 million for construction materials (52.4 percent), KD 77.5 million for basic materials (42.6 percent), and KD 8.8 million for milk and baby food (5 percent) of the total food subsidies during the first half of the year.

Official statistics from the Ministry of Commerce and Industry showed that approximately 2.3 million individuals benefited from cumulative subsidies by the end of June 2025, along with the registration of about 272,134 cumulative ration cards during the same period.

Detailed data show that subsidies for basic commodities disbursed through ration cards during the first half of the year increased by 14.3 percent, about KD 11.1 million, compared to KD 66.4 million in the same period last year. Subsidies for milk and baby food rose by 18 percent (KD 1.6 million) this year, up from KD 7.2 million in the first half of 2024. Meanwhile, subsidies for construction materials declined by 10.5 percent (KD 11.2 million) to KD 95.2 million, compared to KD 106.4 million in the first half of last year.

Statistics also recorded that the Ministry of Commerce and Industry supported food commodities in June with a total of KD 32 million, of which KD 17 million (55 percent) was allocated to basic commodities, which is a 26 percent increase compared to May. Milk and baby food subsidies totaled about KD 2 million, representing 7 percent of the total subsidies disbursed and marking an 84 percent increase compared to the previous month. Subsidies for construction materials amounted to approximately KD 12 million, accounting for 39 percent of the total disbursed and reflecting a 24 percent decrease compared to May.

Data from the Construction Supply Department for June 2025 showed that 333 new requests for subsidized construction materials were issued, which is a 46 percent decrease compared to the previous month. Renewals of subsidized construction material transactions numbered 26, down ten percent, while three requests for exchanging subsidized materials were submitted, a 67 percent decrease. Requests for certificates of receipt of materials totaled 26, a four percent increase, and requests for certificates of non-receipt of materials reached 72, a three percent increase.

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff

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Global Economy Shows Signs of Improvement in Q2 2025: AEO

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Global Economy Shows Signs of Improvement in Q2 2025: AEO

Jamal Al-Loughani, Secretary-General of the Arab Energy Organization (AEO), formerly known as OAPEC.

KUWAIT CITY, Aug 13: The global economy showed signs of relative improvement in the second quarter of 2025, driven primarily by accelerated spending on imports in anticipation of higher US tariffs, alongside a general improvement in global financial conditions. This was revealed by Jamal Al-Loughani, Secretary-General of the Arab Energy Organization (AEO), in a statement to Kuwait News Agency (KUNA) on Wednesday, following the release of the organization’s second quarterly report on the global oil market.

Al-Loughani noted that the global economic growth rate forecast for 2025 was revised upward to 3%, compared to the earlier forecast of 2.8%. He attributed this positive shift to factors such as improved financial conditions and preemptive import spending. However, he cautioned that the lack of comprehensive trade agreements continues to stir concerns about the long-term impact of ongoing global trade uncertainties.

Despite this uptick in global growth, Al-Loughani pointed to a concerning 12.1% decline in the average spot prices of the OPEC basket of crudes, which fell to USD 67.4 per barrel during the second quarter. The prices of crude oil futures also recorded quarterly losses, with Brent crude and US West Texas Intermediate (WTI) falling by 10.8%, reaching $66.8 and $63.7 per barrel, respectively.

The AEO Secretary-General attributed the drop in oil prices to several factors, including shifts in US trade policy, growing concerns about a potential slowdown in global economic growth, and weaker oil demand. Additionally, he mentioned that the downgrade of the US sovereign credit rating due to rising government debt and a slowdown in China’s industrial production and retail sales further dampened investor sentiment.

Global oil supplies showed a slight increase, rising by 0.4% compared to the previous quarter, reaching 104 million barrels per day. This uptick was largely due to increased output from OPEC+ nations and the United States. On the demand side, however, global oil consumption saw a modest decline of 0.03% quarter-on-quarter, influenced by weaker demand from China and other Asian countries.

OPEC member states experienced a 9.5% decrease in crude oil exports during the second quarter of 2025, dropping to approximately $100 billion. This drop in revenue was primarily attributed to falling oil prices. Al-Loughani noted that these developments had a direct impact on the economic performance of member states, with a decline in oil revenues negatively affecting public finances and external accounts.

Despite these challenges, he emphasized that OPEC member states continued to pursue economic reforms aimed at reducing inflation, stimulating investment, and boosting labor market growth. Furthermore, the non-oil sector provided some support to these economies, helping to mitigate the overall economic impact.

Looking ahead, Al-Loughani expressed optimism for the continued growth of the oil sector, particularly with the OPEC+ decision to implement additional voluntary cuts in April and November 2023. These cuts are set to gradually increase production, reaching 411,000 barrels per day in July, 548,000 barrels per day in August, and 457,000 barrels per day in September. This increase in oil production is expected to positively affect oil revenues, which remain a crucial source of national income for member states.

Despite these positive steps, Al-Loughani warned that the global oil market remains surrounded by uncertainty. While OPEC forecasts indicate a decline in oil supplies from non-OPEC+ countries in the third quarter of 2025, global oil demand is expected to rise to approximately 105.5 million barrels per day. These projections, however, remain speculative due to several ongoing uncertainties, including escalating global trade tensions, geopolitical risks in the Middle East and Eastern Europe, and concerns over global economic growth.

Al-Loughani praised the continued efforts by OPEC+ countries, including six members of the Arab Energy Organization, to maintain balance and stability in the global oil market. These ongoing precautionary measures are aimed at ensuring the oil market remains resilient amid global economic and geopolitical challenges.

While the global economy has shown signs of recovery in the second quarter of 2025, the outlook for the oil market remains volatile, with both supply and demand factors contributing to continued uncertainty.

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Gulf Bank Concludes Successful Participation in University Admission Fairs at ‎Kuwait University and Abdullah Al-Salem University

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KUWAIT CITY, Aug 12: As part of its ongoing commitment to supporting education and empowering Kuwaiti ‎youth, Gulf Bank has successfully concluded its distinguished participation in the ‎university admission fairs at Kuwait University and Abdullah Al-Salem University. The ‎Bank actively engaged with new students, introducing them to its tailored banking ‎solutions designed specifically for young people.‎

Gulf Bank took part in the interactive admission fair held at Kuwait University’s Sabah ‎Al-Salem University City in Al-Shadadiya from 19 to 29 July 2025. The Bank’s booth ‎attracted a high turnout from students and parents, who showed great interest in the ‎banking services designed for university students.‎

Similarly, the Bank participated in the admission fair hosted by Abdullah Al-Salem ‎University at its Khaldiya campus from 6 to 17 July 2025. Gulf Bank’s presence ‎featured direct interaction with visitors, providing comprehensive information on ‎student accounts and other tailored services.‎

These participations are part of Gulf Bank’s continuous efforts to strengthen ‎engagement with youth and support them in the early stages of their academic journey. ‎Alongside sharing information on academic majors and admission processes, the ‎Bank also offered financial tips to help students manage their resources effectively ‎from the start of their university life.‎

At both events, Gulf Bank showcased its red account, one of its leading banking ‎solutions designed for customers aged 15 to 25. The account offers a wide range of ‎benefits, including prepaid cards, exclusive discounts, rewards on purchases, and ‎access to unique events and experiences that enrich both personal and professional ‎growth. ‎

Beyond its features, the red account serves as a platform to promote financial literacy ‎among youth, equipping them with the knowledge and skills to make informed ‎financial decisions early in life – positively shaping their future and fostering a ‎generation that is financially aware and capable of managing resources effectively.‎

Gulf Bank’s team expressed pride in supporting students throughout their high school ‎and university years, offering innovative banking services designed to keep pace with ‎their fast-paced lifestyles.‎

Gulf Bank concluded its participation by thanking the administrations of both ‎universities for organizing the fairs, which serve as valuable platforms to connect with ‎youth. The Bank reaffirmed its commitment to continuing its support for educational ‎and youth initiatives that contribute to Kuwait’s development and enhance the quality ‎of life for its students and community.‎

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