Bader Al-Kharafi: Zain Achieves Exceptional Performance with Record Half-Year Revenues

Zain Group recorded exceptional growth in its net profits for the first six months of the 2026 financial year, with net profit surging by 73% to reach 220 million dinars ($717 million), compared to the same period in 2025, representing an earnings per share of 51 fils. Zain, the leading innovator in technology markets across the Middle East and Africa, revealed that its financial indicators for the six-month period were supported by strong growth levels. Revenues rose by 5% to reach 1.14 billion dinars ($3.71 billion), the highest level in over 15 years compared to the same period in 2025. The group reported that EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 6% to reach 378 million dinars ($1.23 billion), with an EBITDA margin of 33%.

Notably, the net profit for the first half of 2026 included gains of $411 million from strategic investments executed by Zain Ventures, which manages and leads the group’s investment portfolio. The group stated that data services revenues increased by 15% to reach $1.5 billion, accounting for 40% of total consolidated revenues. The customer base grew by 2% to reach 51.9 million customers, compared to the same period in 2025.

Based on the record financial results achieved by the group in the first half of the year, the Zain Group Board of Directors approved an exceptional interim cash dividend of 17 fils per share, a move reflecting the strength of its financial performance and the group’s commitment to sharing the fruits of growth with shareholders. Cash dividends are scheduled to begin distribution on October 6, 2026.

Financial results for the second quarter showed consolidated revenues growing by 5% to reach 568 million dinars ($1.85 billion). EBITDA rose by 5% to 196 million dinars ($639 million), with an EBITDA margin of 35%. Meanwhile, quarterly net profits surged by 90% to reach 140 million dinars ($457 million), with earnings per share of 32 fils. (The net profit for the second quarter of 2026 includes gains of $288 million from strategic investments executed by Zain Ventures).

The group attributed the growth in its financial indicators during the first half of 2026 to strong operational performance, driven by data revenue growth, continuous expansion of 5G services, and an increase in the customer base, alongside strong growth in the corporate, enterprise, and business sector revenues. New growth sectors achieved robust growth levels, and the group’s ongoing efforts to improve operational efficiency and maximize returns on strategic investments yielded positive results.

Financial Results

Noura Al-Jassim, Chairperson of the Board of Directors at Zain Group, stated: “The financial results were driven by the diversification of operational streams and the exploitation of investment opportunities in the region. The group has successfully strengthened its role as a driver of digital transformation and a supporter of economic growth.”

She added, “The Board of Directors works closely with executive management to leverage opportunities presented by digital transformations to establish the pillars of the group’s future growth, continuing to invest in strategic opportunities that support business expansion and maximize shareholder equity.”

Al-Jassim further noted, “The group aims to build a more integrated digital ecosystem capable of keeping pace with the future, based on its firm commitment to governance principles, adoption of best sustainability practices, and continuous development of its institutional capabilities, thereby enhancing its regional standing.”

Readiness Enhancement

Bader Nasser Al-Kharafi, Vice Chairman and CEO of Zain Group, said: “These financial results come amid a regional environment characterized by exceptional geopolitical challenges, which impacted business activities, supply chains, commercial and economic activities, necessitating institutions to strengthen their operational capabilities and enhance readiness and resilience levels.”

He explained, “Digital infrastructure has today become a fundamental pillar for the competitiveness of economies, their ability to attract investments, and stimulate growth. In light of this pivotal role, Zain continues to invest in developing its networks and technology platforms, enhancing its readiness to seize future opportunities and meet the growing demand for advanced digital services. In this context, the group’s capital expenditures during the first half of 2026 amounted to $252 million, representing 7% of revenues.”

Al-Kharafi clarified that these investments are part of a broader vision to reshape the group’s business model, emphasizing that Zain has advanced significantly in its digital transformation journey, with the fruits of this progress clearly visible in financial and operational performance. This has been achieved by building a more diversified business portfolio capable of keeping pace with rapid market changes, supporting sustainable growth and strengthening Zain’s position as a regional “technology conglomerate.”

He pointed out that the transformation path being implemented by the group is translating into tangible financial results. Disciplined strategy execution has enhanced the upward trajectory of revenues, with consolidated revenues rising by 5% to reach 1.14 billion dinars. Data services continued to play a key role in fueling the group’s financial performance, with revenues in this vital sector growing by 15% due to increased demand for data.

He added: “The group continues to reap the benefits of its long-term investments in networks and digital infrastructure across key markets. Zain Saudi Arabia recorded exceptional growth in net profits of 84%, while Zain Iraq grew by 7%. In Kuwait, continuous investments in the advanced 5G network enabled the company to maintain its customer base and enhance data and business revenue growth despite strong market competition. Zain operations in Jordan and Bahrain also delivered strong results, while financial performance in Sudan was affected by a 40% currency devaluation, despite continued strong operational performance in local currency and the continuation of network restoration and expansion plans.”

Regional Presence

In the context of continuing Zain Group’s expansion strategy and enhancing its regional presence, Al-Kharafi stated: “The group’s entry into the Syrian market represents one of the most important strategic milestones in its journey in recent years. Zain won a license to operate a new mobile telecommunications network in the Syrian Arab Republic for 20 years (+5 years extension), following a competitive process subject to technical and financial evaluation, in which the group submitted the best offer according to tender criteria.”

He affirmed: “This step reflects Zain’s confidence in the prospects of economic recovery and future growth in Syria, and will enhance its presence in the Arab Mashreq region. With preparations underway to launch the Zain brand in Syria during the first quarter of 2027, the group looks forward to leveraging regional integration opportunities and enhancing digital connectivity to provide cross-border services and solutions based on the group’s extensive technological capabilities.”

Notably, the Syrian market features a young population base and growing demand for high-quality telecommunications and data services, both at the individual and business levels, amid gradual improvement in economic and social indicators.

ZainTECH

ZainTECH emerges today as one of the group’s new strategic growth pillars, amid Zain’s rapid transformation toward building an integrated digital business ecosystem that goes beyond traditional telecommunications services. The company has solidified its position as a leading regional provider of digital solutions and IT services, becoming one of the most important drivers of the group’s future growth and expansion. Its operations achieved a 24% revenue growth over the six-month period.

This strong performance was driven by increasing demand for digital transformation services, cloud computing, cybersecurity, artificial intelligence, and smart city solutions. The company, along with business sector teams in the group’s markets, contributed to a 13% growth in corporate, enterprise, and business sector revenues by winning landmark contracts and projects with major institutions and government entities.

ZainTECH enjoys promising growth prospects supported by the accelerating pace of digitalization in the region and rising spending on digital infrastructure and advanced technological solutions, enhancing its role as a key contributor to diversifying the group’s revenue sources in the future.

ZOI

Zain International Operating Company (ZOI) continues to deliver exceptional financial and operational performance. Despite ongoing regional disruptions, ZOI achieved outstanding results, with revenues surging by 45% to reach approximately $287 million. This performance was supported by strong demand for regional and international connectivity services, alongside continuous progress in ZOI’s strategic infrastructure program. Key developments included further progress in submarine cable corridor projects, robust implementation of the Saudi backbone network exceeding 8,000 kilometers, advancement in data center projects in Dubai and Dammam, and the development of new opportunities in satellite communications, including direct-to-device services and consumer-oriented services in partnership with SpaceX. These initiatives continue to strengthen ZOI’s position as a leading regional platform for wholesale connectivity services.

Fintech

The fintech sector continued to maintain strong momentum during this period, with the customer base growing by 35% across the group’s various markets. This contributed to enhanced revenues and the volume of digital financial transactions, reflecting the group’s successful strategy to expand its digital financial services through specialized platforms, including the “Bee” brand in Kuwait, Bahrain, and Sudan; “Tamam” in Saudi Arabia; and “Zain Cash” in Jordan and Iraq.

Revenues from fintech services surged by 29%, as these activities benefit from significant growth opportunities driven by rising adoption rates of e-wallets, digital payment and transfer services, and innovative financing solutions.

Zain Ventures

In line with the group’s commitment to building sustainable value sources for shareholders, Zain Ventures continued to execute strategic investments and achieve tangible gains during the period, leveraging its investments in venture capital funds and the global startup ecosystem. Strategic investments by Zain Ventures recorded notable gains of $411 million over the six-month period.

Notably, Zain Ventures’ investment portfolio includes high-growth global companies such as SpaceX AI. Zain believes that this investment direction will continue to support financial performance and enhance long-term returns for shareholders.