Industry Updates

Zain Group, a leading TechCo providing innovative ICT and digital lifestyle communications in eight markets across the Middle East and Africa reports impressive consolidated financial results for second quarter (Q2) and six-months (H1) ended 30 June 2026. Zain served 51.9 million customers at the end H1 2026, a 2% increase Year-on-Year (YOY), driven by network expansion and the appeal of 5G services across four markets.

Group Key Performance Indicators (KD and USD) for the first six months (H1) of 2026

Zain Group H1 2026 revenue grew 5% YoY to reach KD 1.14 billion (USD 3.71 billion) compared to H1 2025. EBITDA grew 6% YoY to reach KD 378 million (USD 1.23 billion), reflecting an EBITDA margin of 33%. Net income for the first six months soared 73% YoY, reaching KD 220 million (USD 717 million). Net income for H1 2026 includes a gain of USD 411 million from Group’s strategic investments undertaken by Zain Ventures. H1 2025 Earnings per share stood at 51 fils (USD 0.17).

Group Key Performance Indicators (KD and USD) for the second quarter (Q2) of 2026

Zain Group Q2 2026 revenue grew 5% YoY to reach KD 568 million (USD 1.85 billion) compared to Q2 2025. EBITDA reached KD 196 million (USD 639 million), reflecting a healthy EBITDA margin of 35%. Net income soared 90% to reach KD 140 million (USD 457 million). Net income for Q2 2026 includes a gain of USD 288 million from Group’s strategic investments undertaken by Zain Ventures. Q2 2026 earnings per share stood at 32 fils (USD 0.11).

Key Operational Highlights for H1 2026

1. The Board declared an exceptional interim dividend of 17 fils per share, that will be payable to entitled shareholders on 6 October 2026
2. Zain successful USD 747 million bid for 75% ownership interest in a Syrian telecom entity with a 25-year technology-neutral license (20 years plus 5-year extendable). Target to launch Zain brand in Syria in Q1 2027
3. Data revenue grew 15% YoY to reach USD 1.5 billion, representing 40% of total Group revenue
4. Over the six months, Zain Group invested USD 252 million in CAPEX (7% of revenue)
5. Operations in Kuwait, KSA, Bahrain and Jordan witness solid growth in 5G and data revenues
6. Impressive net profit growth in KSA +84% and Iraq +7% for H1 2026
7. Growth verticals revenue grew 36% YoY to reach USD 479 million, representing 13% of total Group revenues
8. Zain Ventures strategic investments record notable gains of USD 411 million for the six-month period
9. Fintech customer base increases 35% YoY driving revenue growth of 29%
10. Groupwide enterprise revenue witnessed 13% growth YoY, as ZainTECH and B2B teams win key business and government accounts. ZainTECH revenue healthy growth of 24% YoY
11. Zain Omantel International (ZOI) records robust revenue growth of 45% YoY

Commenting on Q2 and H1 2026 results, Chair of the Board, Mrs Nour Al-Jassim said:

“As a leading regional TechCo, the Board is working closely with executive management to sustain this positive trajectory and to advance our ESG and business initiatives, reinforcing our commitment to delivering sustainable shareholder value. In parallel, we are strengthening our constructive engagement with regulators and key stakeholders across our footprint, ensuring that the meaningful connectivity and customer experience we deliver across all business segments remain exceptional.”

“Building on this remarkable H1 2026 performance with Earnings Per Share (EPS) of 51 fils, the Board is pleased to declare an exceptional interim dividend of 17 fils per share.”

Mr. Bader Al-Kharafi, Zain Vice-Chairman and Group CEO commented, “This 15-year high exceptional financial performance over the past six months reflects our disciplined navigation of regional challenges, coupled with the successful implementation of AI‑driven operational efficiencies, targeted strategic investments, and the accelerated monetization of our 5G networks.”

“The Board of Directors declaration of a special 17 fils per share interim dividend reflects the confidence and success of our ‘4WARD–Progress with Purpose’ strategy that is propelling the Group’s diversified operating model to new levels of performance and value creation. It also reaffirms the strong financial solvency of company’s balance sheet and future growth prospects.”

“The sustained growth in our core mobile business and key growth verticals of enterprise, fintech, and digital services is our primary focus as we continue to invest in digital infrastructure and integrate AI solutions everywhere to elevate the customer offering and experience.”

“To mitigate the impact of the ongoing regional crisis across affected markets, our dedicated teams are working tirelessly alongside our technology partners to maintain critical connectivity and ensure continuity of businesses and livelihoods for those we serve. I am truly proud of and inspired by our 8,000‑strong workforce.”

“The performance of our home Kuwait operation is gratifying, particularly given the ongoing conflict that is inevitably affecting the business. Significant investments in expanding our 5G‑Advanced network are enabling Zain Kuwait to retain its customer base and grow enterprise and data revenues, despite intense competition. The strong net‑profit performance of our operations in Saudi Arabia and Iraq reflects the successful monetization of the substantial network investments made in these markets. Jordan and Bahrain likewise delivered solid results. In Sudan, a 40% currency devaluation impacted an otherwise impressive performance in local‑currency terms, as site networks continue to be restored and expanded across Khartoum.”

“We will continue to invest in and support the positive trajectory of ZainTECH and Zain Omantel International, both of which are performing exceptionally well and delivering essential ICT and connectivity services across the region and beyond. We remain highly confident in these key strategic growth verticals, as we are in our fintech vertical, (Bede in Kuwait, Bahrain, and Sudan; Tamam in KSA; and Zain Cash in Jordan and Iraq) whose combined customer base now exceeds 6.4 million, driving financial inclusion through life‑enriching services.”

“We are fortunate to have made strategic investments through Zain Ventures, including venture‑capital funds and participation in the global startup ecosystem. These include high‑growth, globally recognized companies such as SpaceXAI, which have had a significant positive impact on our financial performance. Zain Ventures will continue to actively pursue investments that create value and enhance shareholder returns.”

Concluding, Mr Al-Kharafi noted, “Our successful bid for a 25‑year telecom licence in Syria underscores our confidence in the country’s economic recovery and long‑term prospects, while also reinforcing longstanding Kuwaiti–Syrian ties. With the Zain brand launch in Syria expected in Q1 2027, this expansion will further strengthen our presence in the Levant, alongside our operations in Iraq and Jordan, enabling us to capture meaningful synergies across the region. It will also enhance regional connectivity by delivering cross‑border digital services that leverage Zain’s technological capabilities and scale.”

Financial KPIs of key markets for three months and six-months period ended 30 June 2026

Kuwait: Zain Group's flagship and most profitable operation maintained its market leadership position, with a customer base of 2.6 million. Revenue reached KD 90 million (USD 294 million), while EBITDA increased 2.4% YoY to KD 35 million (USD 113 million), reflecting EBITDA margin of 39%. Net income for Q2’26 reached KD 19 million (USD 63 million), with H1’26 net income reached KD 36 million (USD 116m). Data revenue was bolstered by the addition of over 500 5G-Advanced sites, leading to an increase of 8% to represent 41% of total revenues for H1’26. Performance was supported by strong broadband growth, improved prepaid monetization, and B2B enterprise momentum, partially offset by lower device sales and roaming activations.

Saudi Arabia: Zain KSA delivered a strong Q2 performance, with its customer base increasing 8% YoY to 8.9 million. Revenue stood at USD 707 million, while EBITDA increased 3% to USD 233 million, with 33% EBITDA margin. Net income jumped 60% YoY to USD 54 million. Notably, H1’26 net income soared 84% to USD 108 million, supported by higher USF income. Data revenue increased 6% to represent 42% of total revenues for H1’26. Performance was supported by a more diversified revenue base, improved operating efficiency and continued growth across digital and B2B services powered by its 5G-Advanced network. During the period, Zain KSA also strengthened its digital capabilities through the launch of its AI Center of Excellence and Smart Hajj platform, while expanding its cybersecurity offering and strategic partnerships across key sectors.

Iraq: Zain Iraq recorded revenue of USD 334 million in Q2 2026, marking a 7% YOY increase, with half-year revenue reaching USD 660 million, up 10% from H1 2025. The performance was driven by effective execution of its commercial strategy, continued network deployment in strategically relevant regions, and a strong contribution from its subsidiaries Horizon and NextGen all delivered despite the continued impact of regional instability and challenging macroeconomic environment. EBITDA grew 4% to USD 122 million in the quarter and 5% to USD 232 million for the six-month period, while net profit rose 3% to USD 41 million in Q2 and 7% to USD 71 million for the half-year. The customer reached 20.4 million, maintaining market leadership in Iraq.

Sudan: Zain Sudan customer base increased 9% YoY to 12.9 million, nevertheless continues to operate in a highly complex environment. A further 40% currency devaluation, with the FX rate moving from SDG 2,140 per US$ in June 2025 to SDG 3,550 in June 2026, weighed significantly on the reported financial performance. Including the impact of IAS 29, Q2 revenue declined 7% YoY to USD 126 million, while EBITDA decreased 13% to USD 66 million. Net income reached USD 59 million for Q2’26 and USD 115 for H1’26. Data revenue increased 38% to represent 37% of total revenues for H1’26.

Jordan: Zain Jordan delivered a solid Q2, achieving steady financial and operational growth. Revenue grew 4% YoY to reach USD 154 million, while EBITDA grew 5% to USD 60 million, reflecting an EBITDA margin of 39%. Net income grew 2% to reach USD 21 million. H1-26 net income grew 1% to reach USD 40 million. The expansion of 5G services and expansion of FTTH in city centers, commercial zones and other strategic locations, drove data revenue growth of 11% to represent 57% of total revenues for H1’26.

Bahrain: Revenue for the quarter reached USD 52 million. EBITDA grew 2% to reach USD 15 million, reflecting an EBITDA margin of 30%. Net income for the second quarter increased 1.4% to reach USD 3.7 million. H1-26 net income grew 1.2% to reach USD 6.8 million. The operator’s 5G network drove healthy growth in enterprise revenues, while also supporting a 3% growth in data revenue now representing 47% of total revenue for H1’26.

Source: https://www.zain.com/en/press-release/zaingroup2026-q2