Zain jumps its half-year net profit to $717 million - Sarmad
• Board of Directors approves exceptional interim dividend of 17 fils per share
• EBITDA grows by 6% to reach $1.23 billion
• Data services revenue rises 15% to $1.5 billion, accounting for 40% of total consolidated revenue
• New growth engines maintain strong momentum with 36% growth, generating $479 million in revenue
• Zain Kuwait’s data revenue increases by 8%, reflecting continued success in 5G network expansion
• Zain Sudan operations maintain operational momentum despite current challenges, with continued customer base growth
• ZainTECH revenue rises 24%, while Zain Oman International achieves exceptional growth of 45%
• Zain continues growth in financial technology services, recording an 8% increase in revenue
• Zain obtains operating license in Syria, planning to launch services in early 2027
Zain Group (listed on the Kuwait Stock Exchange under the ticker: ZAIN) recorded exceptional growth in its net profit for the first six months of the current fiscal year 2026, with net profit surging by 73% to reach 220 million dinars ($717 million), compared to the same period in 2025, representing earnings per share of 51 fils.
Zain, the leading technology innovation company in Middle East and African markets, revealed that its financial indicators for the first half of the year were supported by strong growth levels, with revenues rising 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 disclosed that EBITDA 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 reported that data services revenue increased by 15% to reach $1.5 billion, representing 40% of total consolidated revenue, while 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 during the first half of the year, the Board of Directors of Zain Group approved an exceptional interim cash dividend of 17 fils per share, a move reflecting the strength of financial performance and the Group’s commitment to sharing the fruits of achieved growth with shareholders. The cash dividend distribution will begin on October 6, 2026.
The quarterly financial results for the second quarter showed consolidated revenue growth of 5% to reach 568 million dinars ($1.85 billion), while EBITDA rose by 5% to reach 196 million dinars ($639 million) with an EBITDA margin of 35%. Meanwhile, quarterly net profit 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 robust growth in the corporate, projects, and business sector revenues. New growth sectors achieved strong growth rates, while the Group’s ongoing efforts to enhance operational efficiency and maximize returns on its strategic investments yielded positive results.
Noura Al-Jassim, Chairperson of the Board at Zain Group, stated, “The financial results were driven by the diversification of operational streams and the leveraging of investment opportunities in the region, where the Group succeeded in strengthening its role as a driver of digital transformation and a supporter of economic growth.”
She elaborated, “The Board works closely with executive management to capitalize on opportunities presented by digital transformations to lay the foundations for the Group’s future growth, continuing to invest in strategic opportunities that support business expansion and maximize shareholder value.”
Al-Jassim added, “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.”
Bader Al-Kharafi, Vice Chairman and CEO of Zain Group, said, “These financial results come against the backdrop of a regional environment characterized by exceptional geopolitical challenges, which impacted business flows, supply chains, and commercial and economic activities. This necessitated that institutions strengthen their operational capabilities and raise their levels of readiness and resilience.”
He explained, “Digital infrastructure has today become a fundamental pillar of economic competitiveness, the ability to attract investments, and the capacity to stimulate growth. In light of this pivotal role, Zain continues to invest in the development of its networks and technical 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 for the first half of 2026 amounted to $252 million, representing 7% of revenues.”
Al-Kharafi noted that these investments are part of a broader vision to reshape the Group’s business model, emphasizing that Zain has reached an advanced stage in its digital transformation journey, the fruits of which are clearly evident in financial and operational performance. This has been achieved by building a more diversified business portfolio capable of adapting to rapid market changes, supporting sustainable growth and strengthening Zain’s position as a regional “technology conglomerate.”
Al-Kharafi pointed out that the transformation path undertaken by the Group is translating into tangible financial results. The disciplined implementation of the strategy has reinforced the upward trajectory of revenues, with consolidated revenues rising by 5% to reach KD 1.14 billion. Data services continued to play a key role in driving the Group’s financial performance, with revenues from this vital sector increasing by 15%, thanks to growing 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 profit, up by 84%, while Zain Iraq achieved growth of 7%. In Kuwait, sustained investments in the advanced 5G network enabled the company to retain its customer base and boost data and business segment revenue growth, despite intense market competition. Zain’s operations in Jordan and Bahrain also delivered strong results, whereas financial performance in Sudan was impacted by a 40% currency devaluation, despite continued strong local currency operational performance and the ongoing execution of network restoration and expansion plans.”
As part of Zain Group’s continued implementation of its expansion strategy and strengthening of its regional presence, Al-Kharafi stated, “The Group’s entry into the Syrian market represents one of the most significant strategic milestones in its journey over recent years. Zain won a license to operate a new mobile telecommunications network in the Syrian Arab Republic for a period of 20 years (+5 years extension), following a competitive process that involved technical and financial evaluation, in which the Group submitted the best bid according to tender criteria.”
He emphasized, “This step reflects Zain’s confidence in Syria’s economic recovery prospects and future growth. It will also strengthen the Group’s 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 capitalizing on regional integration opportunities, enhancing digital connectivity, and delivering cross-border services and solutions based on the Group’s extensive technical capabilities.”
It is worth noting that the Syrian market is characterized by a young population and growing demand for high-quality telecommunications and data services, both among individual consumers and the business sector, amid gradual improvements in economic and social indicators.
Al-Kharafi also highlighted the growing performance of the Group’s new growth engines (ZOI, ZainTECH, and the financial technology sector), which have become one of the key pillars of its long-term strategy. He said, “These segments have made remarkable progress during this period, with their revenues increasing by 36% to reach $479 million, contributing 13% of the Group’s total revenue.” He explained that this strong performance reflects Zain’s success in executing its strategy to build a more diversified business model and solidifying its position as an integrated digital operator.
ZainTECH
ZainTECH today stands out 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 established itself as a leading regional provider of digital solutions and IT services, becoming one of the key 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 rising demand for digital transformation services, cloud computing, cybersecurity, artificial intelligence, and smart city solutions. Additionally, the company, together with the business sector teams across the Group’s markets, contributed to a 13% increase in corporate, projects, and business segment 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 increased spending on digital infrastructure and advanced technological solutions, which will further enhance its role as a key contributor to diversifying the Group’s revenue sources in the future.
ZOI
Zain International (ZOI) continued to deliver exceptional financial and operational performance, achieving outstanding results despite ongoing regional disruptions. Revenues surged by 45% to reach approximately $287 million.
This performance was driven by strong demand for regional and international interconnection services, alongside steady progress in ZOI’s strategic infrastructure program. Key developments included further advancement in submarine cable corridor projects, robust execution of the Saudi backbone network exceeding 8,000 kilometers, progress on 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 reinforce ZOI’s position as a leading regional platform for wholesale interconnection services.
Fintech
The fintech sector maintained strong momentum during this period, with the customer base growing by 35% across the Group’s various markets. This contributed to increased revenues and digital financial transaction volumes, reflecting the success of the Group’s strategy to expand its digital financial services through specialized platforms. These include the brand “Bee” in Kuwait, Bahrain, and Sudan; “Tamam” in Saudi Arabia; and “Zain Cash” in Jordan and Iraq.
Revenues from fintech services jumped 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, high-impact investments and realize 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 and AI, as Zain believes this investment direction will continue to support financial performance and enhance long-term returns for shareholders.
Zain Kuwait
Zain Kuwait maintained operational resilience during the second quarter of 2026, with its customer base reaching 2.6 million customers. Revenues amounted to $294 million, while EBITDA rose by 2.4% to $113 million, achieving an EBITDA margin of 39%. Net profit reached $36 million (compared to $116 million for the first half of 2026).
This performance was supported by strong growth in broadband services, improved returns from prepaid services, sustained momentum in the corporate, enterprise, and business segments, and further expansion of the fifth-generation (5G) network. Data revenues remained the company’s primary growth driver, increasing by 8% to account for 41% of total revenues.
Zain Saudi Arabia
Zain Saudi Arabia delivered strong performance in the second quarter of 2026, with its customer base growing by 8% to reach 8.9 million customers. The company recorded revenues of $707 million, while EBITDA increased by 3% to $233 million, with an EBITDA margin of 33%. Net profit surged by 60% to $54 million (compared to an 84% increase to $108 million during the first half of 2026), supported by higher Universal Service Fund (USF) revenues.
The performance was supported by a more diversified revenue base, improved operational efficiency, and continued growth in digital and corporate services. The company enhanced its digital capabilities by launching the AI Center of Excellence and the Smart Hajj platform, alongside expanding its cybersecurity offerings and strategic partnerships across key sectors.
Zain Iraq
Zain Iraq recorded revenues of $334 million in the second quarter of 2026, representing a 7% increase (reaching $660 million for the first half of 2026, a 10% growth compared to the same period in 2025). This was driven by the strong execution of the company’s strategy, continued expansion of network deployment in key areas, and significant contributions from Horizon and NextGen, despite ongoing regional instability and challenges associated with the macroeconomic environment.
EBITDA grew by 4% to $122 million in the second quarter (and by 5% to $232 million during the first half of 2026), while net profit increased by 3% to $41 million in the second quarter and by 7% to $71 million over the six-month period. The customer base reached 20.4 million, reinforcing Zain Iraq’s continued market leadership.
Zain Sudan
Zain Sudan’s customer base grew by 9% to reach 12.9 million customers, despite the company continuing to operate in a highly complex operational environment. An additional 40% decline in the currency value, with the exchange rate moving from 2,140 Sudanese pounds per US dollar in June 2025 to 3,550 pounds in June 2026, significantly impacted reported financial results. After accounting for the impact of applying IAS 29, second-quarter revenues declined by 7% to $126 million, while EBITDA fell by 13% to $66 million. Net profit stood at $59 million in the second quarter and $115 million for the first half of the year. Data services revenues rose by 38%, accounting for 37% of total revenues in the first half of 2026.
Zain Jordan
Zain Jordan delivered strong performance in the second quarter, recording growth in both financial and operational metrics. Revenues increased by 4% to $154 million, while EBITDA rose by 5% to $60 million, achieving an EBITDA margin of 39%. Net profit grew by 2% to $21 million (and by 1% to $40 million for the first half of 2026). Data revenues increased by 11%, supported by the continuous expansion of the 5G network, now representing 57% of total revenues.
This performance was driven by growth in individual services, the corporate, projects, and business sector, alongside the continuous expansion of Fiber-to-the-Home (FTTH) services in key areas.
Zain Bahrain
Zain Bahrain maintained stable performance during the second quarter of 2026, with revenues reaching $52 million. EBITDA increased by 2% to $15 million, achieving an EBITDA margin of 30%. Net profit amounted to $3.7 million, a 1.4% increase (and rose by 1.2% to $6.8 million for the first half of 2026).
