Bloomberg News

Iraq Fines Zain for Violating License by Not Listing on Bourse

July 05, 2012

Iraq’s telecommunications regulator fined Zain Iraq, a unit of Kuwait’s Mobile Telecommunications Co. (ZAIN), for violating license terms by failing to list 25 percent of shares on the Iraq Stock Exchange last year.

Zain has been subject to a daily fine of 15 million dinar ($12,875) since the Aug. 31 last year, Ahmad al-Omari, a member of the trustee board of the Communications and Media Commission, said in a telephone interview from Baghdad today. “They had enough time to prepare the listing on the bourse for more than four years since the license was given,” he said.

The commission fined the country’s two other operators for the same reason last month. Asiacell, an affiliate of Qatar Telecom QSC, is subject to a fine of 10 million dinars a day and Korek Telecom, part-owned by France Telecom SA (FTE), has been fined 3 million dinars a day since Aug. 31.

The companies have the right to appeal, Omari said. The three operators were also mandated to convert their forms of incorporation to public companies before listing on the bourse, according to regulations.

Officials at the three companies were not immediately available for comment.

Iraq has 23 million mobile-phone subscribers, according to the Communications and Media Commission.

To contact the reporter on this story: Khalid Al-Ansary in Dubai at kalansary@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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