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Zain and Ooredoo Launch Regional Tower Platform

Zain and Ooredoo Launch Regional Tower Platform

Zain Group and Ooredoo Regional Tower Partnership

Zain Group and Ooredoo have launched a jointly owned regional telecommunications tower platform, marking a new phase in digital infrastructure development across the Middle East. The first closing combines tower assets from Qatar and Kuwait.

The platform brings together approximately 4,000 telecommunications towers operated through Ooredoo Qatar’s Al Abraj and Zain Kuwait’s ITK. Both groups hold an equal 50% stake in the venture. The companies also plan to expand the platform by adding tower portfolios from other markets, subject to regulatory approvals and closing conditions.

Building a Shared Digital Infrastructure Platform

The partnership focuses on passive telecommunications infrastructure, including the towers and physical facilities that support mobile networks. By consolidating these assets, Zain and Ooredoo aim to improve operational scale and capital efficiency. As a result, telecommunications operators could access infrastructure through a more specialised operating model.

The platform will also support an infrastructure-as-a-service model. Under this approach, operators can access tower infrastructure without owning and managing every site themselves. As a result, they may allocate more capital to network services, technology upgrades, and customer experience.

Expansion Across Regional Markets

The first closing represents an important step towards the companies’ broader regional infrastructure strategy. When the partners announced the transaction in December 2023, they outlined plans for a platform spanning multiple Middle Eastern and North African markets. The combined portfolio was expected to exceed 30,000 towers across six countries.

However, the initial platform currently includes the Qatar and Kuwait portfolios. The companies expect to integrate additional assets progressively, subject to the required regulatory clearances and transaction conditions. This phased approach will allow the platform to grow as further contributions become eligible.

Zain Vice-Chairman and Group CEO Bader Al-Kharafi described the first closing as a significant step in building scalable and sustainable digital infrastructure. Meanwhile, Ooredoo Group CEO Aziz Aluthman Fakhroo highlighted the platform’s potential to create value and expand through contributions from additional markets.

Supporting Efficient and Sustainable Connectivity

The platform aims to improve how telecommunications companies deploy and manage infrastructure. Sharing tower assets could also reduce duplication and help operators use capital more efficiently. The companies also expect the initiative to reduce their carbon footprint through a more focused infrastructure model.

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Importantly, Zain and Ooredoo will retain their active telecommunications infrastructure. This includes the technology, software, and intellectual property they need to operate their respective networks. Therefore, the arrangement focuses on sharing and managing physical tower assets rather than merging the companies’ network operations.

The launch reflects a broader regional shift towards specialised digital infrastructure businesses. As demand for mobile connectivity and digital services grows, tower-sharing platforms can help operators manage costs and expand network coverage.

Ultimately, the venture’s success will depend on additional asset contributions, regulatory approvals, and the platform’s ability to attract infrastructure customers. For now, the first closing establishes a shared foundation for Zain and Ooredoo to develop their regional tower business.

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