Zain Saudi Arabia has appointed Fahd bin Ibrahim al-Dughaither as its new chairman, the telco announced in a statement posted on the Saudi bourse website on Saturday.
Zain Saudi Arabia, which is 37% owned by Kuwait's Zain Group, has made a loss every year since its launch. The unit posted a net loss of SR443 million ($118.1m) for 2012. It has extended the maturity of a SR9 billion Islamic loan seven times since last summer, according to Reuters.
However there were some signs of improvement in 2012 as the Saudi unit reduced its net loss by 9% year-on-year.
Speaking about the unit in Zain Group's 2012 results statement, Scott Gegenheimer, group CEO at Zain, said: “Zain KSA successfully completed its rights issue with a full subscription during the summer; a development that formed part of a wider plan to restructure the company’s capital. Zain Group continued to back its Saudi Arabia operation both administratively and financially, having taken the strategic decision to increase its ownership in Zain KSA to 37% in the wake of the company’s rights issue.”
Zain Saudi Arabia competes with incumbent operator STC and second operator, Mobily.