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.‎