KUWAIT CITY — Regional telecommunications operators Zain Group and Ooredoo Group have officially announced the first closing of their unified regional telecommunications tower transaction, consolidating their initial passive infrastructure portfolios into an independent cross border platform jointly held under a 50:50 equity ownership structure.
The foundational closing combines the domestic tower assets of Zain Kuwait (ITK) and Ooredoo Qatar (Al Abraj)within the shared corporate vehicle. Together, the consolidated operational portfolios comprise approximately 4,000 passive telecommunications towers, establishing an immediate position of scale designed to optimize capital allocation,streamline site management, and eliminate redundant physical footprint investments across key GCC operating markets.
The strategic transaction transitions the passive infrastructure layer toward a dedicated infrastructure as a service (IaaS)commercial delivery framework, allowing mobile network operators to access shared tower real estate more cost effectively while lowering carbon emissions through optimized site density and shared power topologies. Additional regional tower portfolios across the operating footprints of both telecom conglomerates are slated for phased integration into the joint platform, subject to standard closing covenants and local regulatory clearances across individual jurisdictions. Both groups will retain full ownership and operational custody over their respective active telecommunications infrastructure, preserving proprietary ownership over radio access networks, core software platforms,transmission gear, and intellectual property.
Bader Al Kharafi, Vice Chairman and Group Chief Executive Officer of Zain Group, stated that the initial closing represents a decisive inflection point in the structural evolution of digital infrastructure for both entities. Al Kharafi noted that the platform reflects a shared corporate roadmap focused on establishing scalable, capital efficient platforms that maximize underlying balance sheet value while contributing directly toward decarbonizing the region's digital infrastructure. He extended institutional gratitude to Kuwait’s regulatory bodies for their structural oversight throughout the licensing and approval proceedings.
Aziz Aluthman Fakhroo, Group Chief Executive Officer of Ooredoo Group, affirmed that executing the transaction represents a cornerstone milestone in establishing a premier regional passive infrastructure operator with defined expansion corridors into neighboring markets. Fakhroo highlighted that the execution operationalizes Ooredoo's stated strategic roadmap across every digital infrastructure vertical, expressing appreciation to Qatar’s Communications Regulatory Authority and the Ministry of Municipality for establishing an agile regulatory environment to facilitate the cross border transaction.
