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Zain Saudi Arabia Discusses Debts with Ministry of Finance

Saudi Ministry of Finance (Asharq al-Awsat)
Saudi Ministry of Finance (Asharq al-Awsat)
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Zain Saudi Arabia Discusses Debts with Ministry of Finance

Saudi Ministry of Finance (Asharq al-Awsat)
Saudi Ministry of Finance (Asharq al-Awsat)

Zain Saudi Arabia has started a new round of talks with the Kingdom’s Ministry of Finance to convert the debt it owes, or at least part of them, into shares.

The third telecom operator in the Kingdom may convert the entire debt or part of it into shares, it said in a bourse filing to the Tadawul stock exchange on Monday, without specifying the amount it owes to the Ministry or when it expects to finalize talks.

Zain has “started discussions to convert whole or part of the outstanding debts due to the ministry into shares in the company through partially underwriting the proposed rights issues or any other means (the Transaction),” it said in the statement.

“The transaction shall be subject to the discussion’s outcomes and shall obtain all necessary approvals from governmental and regulatory bodies such as Communication and Information Technology Commission (CITC), Capital Market Authority (CMA) and the company’s extraordinary general assembly.”

Its announcement followed a previous announcement on October 25, 2017, related to the board of directors’ recommendation to reduce the company's capital and a subsequent capital increase through a rights issue.

Considering Zain Saudi Arabia's financial performance, the company made a profit of SAR260 million ($69.3 million) in H1 2019, compared to a loss of SAR115 million ($30.6 million) during the same period in 2018.

In H1 2019, it recorded the highest revenue for the six-month period in its history, with revenues amounting to SAR4.15 billion riyals ($1.1 billion), compared to SAR3.5 billion ($933.3 million) during the same period in 2018, marking an increase of 17.5 percent due to increased demand for the company’s products and services.

In a related context, the Saudi stock market closed Monday with very positive gains, pushing again the index to exceed the levels of 8,550 points, driven by the rise of most shares of companies trading in the financial market.

Saudi Arabia's index ended its tradings with 0.5 percent up to close at 8,566 points, up 38 points, amid trades totaling about SAR3.4 billion ($906.6 million).

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.