JEDDAH, 11 March 2004 — Foreign investors will soon be able to buy shares of a joint stock company being established to provide a mobile phone service, the Kingdom’s telecom regulator said. “Mobile phone services have been removed from the prohibited list for foreign investment,” said Dr. Muhammad Al-Suwail, governor of the Communications and Information Technology Commission.
“Foreign investors can now own shares of a joint stock company, which is to be established and licensed to provide a mobile phone service,” the Saudi Press Agency quoted the CITC chief as saying.
Suwail said foreign investment in the sector would be allowed under conditions set out in the prequalification process for licensing a new mobile operator in the Kingdom.
The CITC launched the formal licensing process for the new mobile operator and two new data telecommunications service providers recently by issuing a Request For Pre-Qualification.
Many investors within and outside the Kingdom have expressed a keen interest in the project. Prince Alwaleed ibn Talal, chairman of Kingdom Holding, said recently that he was in the process of setting up a consortium of Saudi investors and an international cell phone provider to win the country’s second mobile license.
The CITC has given until March 21 for Saudi firms to apply for the highly prized license. Candidates for the license must be “a consortium of at least five Saudi companies and a cellular mobile operator,” according to conditions set by the commission.
