Zain and Ooredoo Close First Phase of $2.2bn Middle East Tower Joint Venture

Kuwait's Zain Group and Qatar's Ooredoo have completed the first closing of their long-planned telecom tower joint venture, combining their tower assets in Kuwait and Qatar into a single platform comprising approximately 4,000 towers. The milestone comes nearly three years after the two carriers signed an agreement to establish the venture, which was valued at a reported $2.2 billion at the time of announcement. Each company holds a 50 percent stake in the joint venture.

The platform is designed to support the delivery of infrastructure-as-a-service, which the operators say will allow carriers to access tower infrastructure in a more capital-efficient manner while supporting the continued development of digital infrastructure across the region. When the venture was first announced, Zain and Ooredoo said the combined entity would ultimately encompass approximately 30,000 towers across the Middle East and North Africa. In today's announcement, Zain said additional tower portfolios are expected to be integrated progressively into the platform, subject to applicable closing conditions and required regulatory and other approvals.

Bader Al-Kharafi, vice-chairman and group CEO of Zain, described the first closing as a defining step in the evolution of digital infrastructure for both companies, saying it reflects a shared strategy of creating focused, scalable and sustainable platforms that unlock greater value from assets while supporting a reduction in the region's carbon footprint. He added that the platform is expected to play an increasingly important role in strengthening the two companies' digital foundations and enabling the next wave of connectivity, innovation and economic growth, and thanked Kuwait's regulatory authorities for their support during the approval process.

Aziz Aluthman Fakhroo, group chief executive officer of Ooredoo Group, said completing the first closing marks an important milestone in building a regional tower platform designed to create significant value, with a clear path to expansion through additional market contributions. He noted that the company is now executing across every digital infrastructure segment identified in its strategy as it continues building a leading regional portfolio.

The transaction underscores a broader trend among Middle Eastern carriers to separate passive tower infrastructure into dedicated platforms, freeing up capital for network investment while attracting infrastructure-focused investors. With the first phase complete and further portfolios slated for integration, the venture is positioned to become one of the region's largest independent tower operators, with implications for how operators across the Middle East and North Africa access and finance their infrastructure in the years ahead.