Zain jumps half-year profits by 73% to $717 million
Board of Directors Approves Exceptional Interim Dividend Distribution of 17 Fils per Share for the Six-Month Period
Badr Al-Kharafi:
Exceptional performance with record revenues of $3.71 billion, the highest in over 15 years
EBITDA grows by 6% to reach $1.23 billion
Data services revenues rise by 15% to $1.5 billion, representing 40% of total consolidated revenues
New growth engines maintain strong momentum with 36% growth, generating revenues of $479 million
Zain Kuwait’s data revenues increase by 8%, reflecting the success of continuous expansion in its 5G network
Local Political News
Economic Articles
Review of Current Events
Growth in Zain Iraq and Jordan operations revenues... Zain Saudi Arabia achieves an 84% jump in net profit
Zain Sudan operations maintain operational momentum despite current challenges, with continued growth in the customer base
ZainTECH revenues rise by 24%... Zain International Telecom achieves exceptional growth of 45%
Zain continues growth in financial technology, recording a 29% increase in revenues
Operating license in Syria for 20 years (5-year extension) and launch of services in early 2027
Nour Al-Jassim: The Group continues its strategic investments to maximize shareholder equity
Zain Group announced exceptional growth in its net profit for the first six months of the current fiscal year 2026. Net profit surged by 73% to reach 220 million KD ($717 million), compared to the same period in 2025, with earnings per share (EPS) amounting to 51 fils.
Zain revealed that its financial indicators for the six-month period were supported by strong growth levels, with revenues rising by 5% to reach 1.14 billion KD ($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 KD ($1.23 billion), with an EBITDA margin of 33%.
It noted that 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, representing 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 during the first half of the year, the Zain Group Board of Directors approved an exceptional interim cash dividend of 17 fils per share. This step reflects the strength of the financial performance and the Group’s commitment to sharing the fruits of achieved growth with shareholders. The cash dividend distribution is scheduled to begin on October 6, 2026.
The quarterly financial results for the second quarter showed consolidated revenues growing by 5% to reach 568 million KD ($1.85 billion). EBITDA rose by 5% to reach 196 million KD ($639 million) with an EBITDA margin of 35%. Meanwhile, quarterly net profit surged by 90% to reach 140 million KD ($457 million), with EPS 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 of 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.
Diversification of Operational Pathways
Noura Al-Jasim, Chairperson of the Board at Zain Group, stated, “The financial results were driven by the diversification of operational pathways and the leveraging 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 elaborated, “The Board works closely with executive management to capitalize on opportunities presented by digital transformations, laying the foundations for the Group’s future growth. We continue to invest in strategic opportunities that support business expansion and maximize shareholder value.”
Al-Jasim added, “The Group aims to build a more integrated digital ecosystem capable of keeping pace with the future, grounded in 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 marked by exceptional geopolitical challenges, which have impacted business flows, supply chains, and commercial and economic activities. This has 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 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 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 made significant progress in its digital transformation journey, with the fruits of this progress 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, thereby supporting sustainable growth and reinforcing 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 strengthened 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, as revenues in this vital sector grew by 15%, fueled by increasing 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 84%, while Zain Iraq grew by 7%. In Kuwait, sustained investments in the 5G Advanced network enabled the company to retain its customer base and boost data and enterprise revenue growth, despite intense market competition. Zain’s operations in Jordan and Bahrain also delivered strong results. Meanwhile, financial performance in Sudan was impacted by a 40% currency devaluation, although operational performance in local currency remained robust, alongside continued network restoration and expansion plans.”
As part of Zain Group’s ongoing efforts to execute its expansion strategy and strengthen 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 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 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 fintech sector), which have become key pillars of its long-term strategy. He said, “These segments have made notable progress during this period, with revenues increasing by 36% to reach $479 million, accounting for 13% of the Group’s total revenues.” He noted that this strong performance reflects Zain’s success in implementing its strategy to build a more diversified business model and solidify 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 recorded 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 enterprise teams across the Group’s markets, contributed to a 13% increase in enterprise, 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 further enhance its role as a key contributor to diversifying the Group’s revenue sources in the future.
ZOI
Zain Oman International (ZOI) continued to deliver outstanding financial and operational performance, achieving exceptional 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 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 reinforce ZOI’s position as a leading regional platform for wholesale interconnection services.
Fintech
The fintech sector maintained its 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 Group’s successful strategy to expand its digital financial services through specialized platforms, including its brand “Bee” in Kuwait, Bahrain, and Sudan; “Tamam” in Saudi Arabia; and “Zain Cash” in Jordan and Iraq.
Fintech service revenues jumped by 29%, as these activities benefit from significant growth opportunities driven by rising adoption rates of e-wallets, digital payment and remittance 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-quality investments and realize tangible gains during the period, leveraging its investments in venture capital funds and the global startup ecosystem. Zain Ventures’ strategic investments recorded notable gains of $411 million over the six-month period.
The Zain Ventures investment portfolio includes high-growth global companies such as SpaceX, xAI, and Revolut. Zain believes that 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 ($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 sectors, and further expansion of the 5G network. Data revenues remained a key driver of the company’s growth, 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 rose by 3% to $233 million, representing an EBITDA margin of 33%. Net profit surged by 60% to $54 million (compared to an 84% increase to $108 million in the first half of 2026), supported by higher Universal Service Fund (USF) revenues.
This performance was underpinned by a more diversified revenue base, improved operational efficiency, and continued growth in digital and enterprise 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, reflecting a 7% increase (with $660 million for the first half of 2026, up 10% compared to the same period in 2025). This growth was driven by the strong execution of the company’s strategy, continued network expansion in strategic 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 in the first half of 2026). 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 operating in a highly complex environment. An additional 40% decline in the currency value significantly impacted reported financial results, with the exchange rate moving from 2,140 Sudanese pounds per US dollar in June 2025 to 3,550 pounds in June 2026. After accounting for the impact of applying IAS 29, second-quarter revenues decreased 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 in 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, achieving growth in both financial and operational metrics. Revenues increased by 4% to $154 million, while EBITDA rose by 5% to $60 million, with an EBITDA margin of 39%. Net profit grew by 2% to $21 million (compared to a 1% increase to $40 million in 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 enterprise and business sector, and the ongoing 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 rose by 2% to $15 million, reflecting an EBITDA margin of 30%, while net profit amounted to $3.7 million, up 1.4% (compared to a 1.2% increase to $6.8 million in the first half of 2026).
