Based on Etihad Etisalat Co. (Mobily)’s announcement today Tuesday 10/02/1436H corresponding to 2/12/2014 that it has requested referral to arbitration with regard to Mobily’s due receivable amounts resulted from the Service Agreement signed with Zain KSA on 6 May 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic.

As a result of the agreement, an amount of SR 2.2 billion was due to Mobily as of 30 November 2013 which Mobily tried to reach an amicable settlement with Zain KSA since then. Although a lot of good will startups were provided from Mobily’s side, they could not reach an amicable settlement. Accordingly, and for the purpose to protect Mobily’s  rights, Mobily decided to revert back to arbitration as per the Arbitration Rules and Regulations and in accordance with the said Service Agreement. Two arbitrators were appointed by the two parties and work is underway to choose the third arbitrator.

Based on the Capital Market Law and its Implementing Regulations, a CMA Board resolution was issued on 10/2/1436H corresponding to 2/12/2014 that included the suspension of trading the shares of Etihad Etisalat Co (Mobily) and Mobile Telecommunications Company Saudi Arabia (Zain) today Tuesday 10/02/1436H corresponding to 2/12/2014 for one day only in order for the investors in both companies to know the details of the announcement.