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UAE’s Etisalat renews management agreement with Saudi affiliate

Five more years for Etisalat's Saudi connection as it renews management agreement with Saudi affiliate Mobily.

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July 24, 2011 10:34 by



UAE’s Etisalat has renewed a management agreement with its Saudi Arabian affiliate Etihad Etisalat (Mobily) for five more years, the telecoms firm said in a statement on Sunday.

The agreement was due to expire on Dec 22 this year and the renewed contract starts from Dec 23, Etisalat, which holds a 27.4 percent stake in Mobily, said in the statement.

Mobily, which competes with state-controlled Saudi Telecom and Zain Saudi Arabia , proposed a half-year dividend of 1.25 riyals ($0.33) per share on Saturday.

It posted a 29 percent rise in second-quarter net profit earlier in the month but said margins were coming under pressure due to rising competition.

Etisalat’s quarterly profit fell 14.9 percent due to rising costs and increased competition at its home market. (Reporting by Dinesh Nair, Editing by Shaheen Pasha)



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