Zain Kuwait secures licence to operate mobile phone network in Syria, sources say

Kuwaiti telecom firm Zain has secured a licence to operate a mobile ​phone network in Syria, three sources familiar with the matter told ‌Reuters.

Under the 20-year licence, first reported by Bloomberg, Zain will hold a 75% stake in the local operation, while Syria's sovereign fund will own the remaining 25%, the sources ​said.

Zain will acquire the infrastructure, premises and equipment of MTN Syria, which ​has operated in the country for more than two decades, two ⁠sources said.

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.

According to one source with direct knowledge of the matter, engineers from Zain recently completed a field ​survey of MTN Syria's network, inspecting cell towers, backup generators, solar power facilities ​and telecommunications equipment across the country.

Syria's ministry of telecom and information technology and Zain did ‌not ⁠immediately respond to requests for comment.

MTN entered the Syrian market in 2002 under a licence awarded to businessman Rami Makhlouf, a cousin of former President Bashar al-Assad who built a business empire spanning much of Syria's economy.

After a public dispute ​between Makhlouf and Assad ​in 2019, control ⁠of MTN Syria was transferred to "The Group", a conglomerate of companies controlled by the presidential palace.

Following Assad's overthrow last year, ​ownership was transferred to Syria's sovereign wealth fund, established by ​the new ⁠authorities.

Zain's entry comes months after Saudi Arabia's STC signed a memorandum of understanding with Syria to invest about $800 million in the SilkLink fibre-optic network project.

The 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.