Kuwait’s Zain is making one of its biggest telecom bets in years, committing over $1.5 billion to operate and modernise a mobile network in Syria, more than a decade after selling a vast African business built from Celtel, the company founded by British-Sudanese billionaire Mo Ibrahim
The telecom giant that sold its African business for $10.7 billion is now making a $1.5 billion Middle East bet on Syria
- Kuwait’s Zain is investing over $1.5 billion to operate and modernize Syria’s mobile network, marking a significant telecom expansion after years of Middle East focus.
- This move follows Zain’s earlier exit from Africa, where it sold its major telecom business to Bharti Airtel in 2010 for $10.7 billion to refocus on the Middle East.
- The company expects to launch Zain Syria in early 2027, aiming to upgrade the network with 5G and AI technologies and serve about 6.3 million existing customers.
- Zain won a 20-year licence to run the former MTN Syria network with a $747 million bid, holding 75% ownership while the Syrian government retains 25%.
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The deal puts Zain back at the centre of a major emerging-market telecom expansion story, this time in Syria, where Gulf capital is moving into critical infrastructure after years of war and isolation
Zain said it won the licence for the former MTN network after a competitive tender conducted by Syria’s Ministry of Communications and Information Technology, with a $747 million bid
The licence will run for 20 years, with an option to extend it by five years, while Zain will own 75% of the new Syrian operating company and a Syrian government entity will hold the remaining 25%
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The group expects to launch the Zain Syria brand in the first quarter of 2027, subject to regulatory and licensing approvals
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Zain’s latest expansion carries a strong African backstory, dating back to 2005, when the Kuwaiti group, then known as Mobile Telecommunications Company, bought Celtel for $3.4 billion
Celtel, founded by Mo Ibrahim in 1998, had grown into one of Africa’s leading mobile operators, serving more than 21 million customers across 14 sub-Saharan African markets
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Its footprint covered Burkina Faso, Chad, the Democratic Republic of Congo, the Republic of Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia
The acquisition gave the Kuwaiti operator a major foothold in sub-Saharan Africa at a time when mobile penetration remained low and international telecom companies were racing for African subscribers
However, in 2010, Zain reversed course, announcing on March 25 that it had signed definitive agreements to sell 100% of Zain Africa BV, its African business excluding Morocco and Sudan, to India’s Bharti Airtel
The transaction valued the African portfolio at $10.7 billion, including $9 billion in cash consideration and $1.7 billion in debt assumed by Bharti Airtel
Under the payment terms, $8.3 billion was due at closing, with the remaining $700 million payable one year from completion
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The acquisition gave Bharti Airtel a much larger presence on the continent, lifting its reach at the time to about 179 million customers across 18 countries
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Against that backdrop, the Syrian licence gives Zain control of the former MTN network, which served millions of customers before the South African operator moved to exit the country
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MTN had operated in Syria for more than two decades before reaching an agreement with the Syrian government in March to formalise its withdrawal
The company had abandoned the business in 2021, citing regulatory actions and government demands that made operations untenable
During a six-month transition period, Zain said it will work with the Syrian ministry and MTN’s team to maintain services for about 6.3 million existing customers
Meanwhile, the Kuwaiti group plans to invest more than $800 million over the next decade to expand and modernise the network with 5G and AI-powered digital technologies
Together with the $747 million licence bid, the investment plan points to a total commitment of more than $1.5 billion
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Zain Vice-Chairman and Group CEO Bader Al-Kharafi said the move was not only a commercial expansion, but also a long-term bet on Syria’s recovery
“I was honored to meet with President of Syria, H.E. Ahmed Al-Sharaa, during which I emphasized that Zain’s entry into the Syrian market represents more than a strategic business expansion; it reflects our deep confidence in Syria’s future, the capabilities of its people, and its development ambitions,” Al-Kharafi said
While Zain currently operates across eight Middle East and African markets and serves 51.2 million customers, Syria will become its fifth 5G market after Kuwait, Saudi Arabia, Bahrain and Jordan once the network launches
For the Kuwaiti telecom giant, the deal marks a return to large-scale frontier-market expansion, more than 15 years after it made billions from building and selling a major African telecom business
