Investment

Zain to take over former MTN network in Syria

Zain to take over former MTN network in Syria

Zain Group, a Kuwaiti mobile telecommunications company operating in eight markets across the Middle East and Africa and serving 51.2 million customers, has been awarded a 25-year licence to operate the former MTN mobile telecom network in Syria.

This licence – 20 years plus an extendable five years – follows a tender process for the existing MTN network, conducted by the country’s Ministry of Communications and Information Technology (MCOT) that, Zain says, encompassed comprehensive technical and financial evaluations.

Zain adds that it secured the award with the most competitive and fully compliant bid for a total of US$747 million.

Zain will establish a new operating entity in Syria in which the group will hold a 75% stake and a Syrian government entity will hold 25%. The targeted commercial launch for the Zain Syria brand is expected in Q1 2027.

During a six‑month transition handover period, the Zain team will work closely with the Syrian MCOT and the MTN team in supporting the improvement and continuity of services for the current 6.3 million customer base.

The licence marks Zain’s entry as the second operator into what it describes as one of the Levant’s most promising markets, underpinned by a young population and rising demand for high-quality mobile and data services for individuals and businesses, given the improving socio-economic conditions.

As part of the award, the Zain Syria entity will invest more than US$800 million to expand and modernise the network with 5G and AI-powered digital technologies over the next decade.

After operating in the country for more than two decades, MTN announced in March that it had reached an agreement with the Syrian government to formalise its exit from the country after abandoning its operations in 2021, saying regulatory actions and government demands had made the business untenable.

This is a busy period for the telecoms market in Syria. As we reported at the time, earlier this year Saudi Arabia's STC signed a memorandum of understanding with Syria to invest about $800 million in the SilkLink fibre-optic network project.

As Reuters points out, these deals underscore a broader effort by the new Syrian authorities to attract Gulf investment into the country's vital sectors after years of war and isolation.



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