Saudi Arabia suspends telecom shares

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

The government decided to extend the license of Zain Saudi Arabia for 15 years, and also allowed 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.

The government also said that it would provide Zain and other firms with “unified licenses” allowing them to offer all telecommunications services.

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.

Saudi Telecom was the only carrier with a unified license, which allowed the company to provide mobile phone, land line and internet services.

The shares of the four companies were suspended on the Saudi stock exchange until they issue statements on how this will impact their operations.

“Now, all the telecoms providers can have the same license as STC and probably without any additional cost,” a Riyadh-based head of capital and money markets was quoted as saying.