Saudi Arabia suspends telecom shares on licensing move

Saudi Arabia’s securities regulator has suspended trade in the shares of the kingdom’s listed telecommunications operators. (Reuters)

Saudi Arabia’s securities regulator has suspended trade in the shares of the kingdom’s listed telecommunications operators after the government decided to extend their licenses, the Capital Market Authority (CMA) said on Sunday.

The CMA said it was acting after the government decided to extend the license of Zain Saudi Arabia for 15 years, and also allow other telecommunications firms to extend their licenses. The government would be entitled to 5 percent of each company’s annual net income during the extension period.

In addition, the government said it would provide Zain and the other firms with “unified licenses” allowing them to offer all telecommunications services. It did not give details of the new licenses.

Shares in Zain Saudi, Etihad Etisalat (Mobily), Saudi Telecom Co and Atheeb Telecommunication Co will be suspended until the companies announce the impact of the government’s order on them, the CMA said.

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Last Update: Wednesday, 20 May 2020 KSA 09:50 - GMT 06:50
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