Kuwait’s Zain to invest USD 1.5 bn in Syria to become second mobile network operator

The Syrian call

Kuwait’s Zain is making one of the biggest foreign bets so far on post-Assad Syria: The USD 1.5 bn acquisition of a license to operate what will become Syria’s second mobile network operator.

Zain is paying USD 747 mn for the license and will spend another USD 800 mn to modernize and expand the network (which will include 5G connectivity), according to Bloomberg, with the Syrian government taking a 25% stake in the new operator. The license was previously owned by MTN Group, Africa’s largest operator, which wrote down the full value of its Syria business and walked away in March after a settlement with Damascus.

Qatar’s Ooredoo was also going after the license to compete with Syriatel, following Doha-based Estithmar Holding into the country. Estithmar was one of the first really big foreign investors to move in with its April acquisition of 49% of Shahba Bank.

Other early investors eyeing Syria include Emaar founder Mohamed Alabbar, who said he wants to set up a USD 18 bn fund to invest in the country. Building materials companies from across the region and into Europe are also looking at Syria’s cement industry, banking on heavy demand from reconstruction projects now in the pipeline.

Offshore green light

Cyprus’s biggest gas discovery is commercially viable — and that’s great news for Egypt as it looks to cement its position as the eastern Mediterranean’s premier energy hub. Cyprus, QatarEnergy and ExxonMobil confirmed yesterday that the deep-water Glaucus and Pegasus fields have c. 7-9 tcf of marketable gas, moving the project from exploration into development.

The partners expect gas to start flowing through a pipeline to Egypt’s LNG plants and then onward to Europe as early as 2033 provided the project passes a final investment decision expected in 2029.

Deeper pockets

Saudi Arabia’s Public Investment Fund reported that its net profit more than doubled last year to SAR 65.1 bn (USD 17.3 bn) — and that total assets grew 5% to SAR 4.5 tn (USD 1.2 tn), crossing the USD 1.2 barrier for the first time. Arab News and Al Arabiya have more.

The fund has more than SAR 350 bn in cash on hand, and the improved profitability will give PIF more room to commit capital at home, where the crown faces pressure to rationalize its infrastructure buildout while still delivering a wholesale re-imagining of the economy away from oil. PIF wants to see offshore investments accounting for 20% of its book going forward from a previous target of 30%.

Hotel hunting in Oman

Egypt-based asset manager Zaldi Capital is eyeing hotel acquisitions in Oman in partnership with Better Home Real Estate, founder Mohamed Negme says. The wider expansion strategy includes developing a new residential and hospitality project under the Midtown brand in Muscat, with self-funded initial investments of USD 500 mn and a potential expansion into the insurance sector.