DUBAI: Loss-making telecom operator Zain Saudi has gained more time — until July 31 — to repay a $ 2.4 billion Islamic loan due yesterday, the company said in a bourse statement.

Zain Saudi, 37-percent owned by Kuwait's Zain, said the latest extension was to allow it to finalize a new long-term replacement agreement with lenders, which will be for five years and incur lower costs.

The murabaha facility — a Shariah-compliant cost-plus-profit arrangement — was originally due in 2011, but has been put back multiple times.

Zain Saudi, which has yet to make a quarterly net profit since launching services in 2008, earlier this month received government approval to defer payment of license-related fees that could total around $ 1.49 billion over seven years.

The firm's shares have gained 13.6 percent since it announced the government deal.