ZAIN 2022 All Rights Reserved
07
Message from the Vice Chairman and Group CEO
Mr. Bader Nasser Al Kharafi
Vice Chairman and Group CEO
Challenges arising from the COVID-19 pandemic continued to impact the world throughout 2021. Yet, despite the difficulties brought forth by the pandemic, such as supply chain disruptions, government restrictions, economic downturns, and socio-political instability, coupled with the unfolding crisis of climate change, Zain witnessed a determined recovery of its operational performance across our markets.
We continued to focus on developments related to our 4Sight strategy by formally launching ZainTech – Zain’s digital arm – which will play a transformative role in propelling the internal digital transformation of the company, while also playing a significant role in fostering systemic change in our markets. ZainTech will contribute to the growth of the enterprise ecosystem, transforming society, governments, and businesses as well. Cloud services, big data, smart cities solutions, and cyber security are some of the services ZainTech will provide. Through the 4Sight strategy, we are set to reinvent ourselves, becoming increasingly relevant to the needs of our customers, which is a key factor in the sustainability of our business.
Throughout 2021, Zain identified opportunities that resulted from the pandemic, pushing forward with the automation of many of its processes, including its online sales outbound sales channels, which compensated for gaps in the Kuwait market. To be less dependent on physical retail space, Zain Kuwait revamped its app and introduced an e-commerce platform affording customers an effective and superior online customer experience. The move towards broader online presence resulted in having less dependence on physical points of sales, a strategic direction we are aiming to replicate in our other operations. To ensure our customers were provided with best-in-class customer experience, we further enhanced our call centers, resulting in greater efficiency as all customer center employees worked remotely and were provided with all the necessary tools.
Changes in the regulatory environment across our footprint slowed, and technology uptake was also impacted by delays related to supply chain challenges. Pandemic-related delays resulted in a drop in device sales due to lack of availability. Zain addressed these challenges by proactively engaging with our suppliers and communicating regularly with our operating companies to factor-in possible delays and place orders well in-advance to compensate for the challenges being faced in logistics globally.
It was pleasing to see Zain Saudi Arabia receiving a non-binding offer from the Kingdom’s Public Investment Fund to buy all the company’s passive tower infrastructure, following our pioneering sale of Zain Kuwait’s towers. We are keen on to finalizing similar infrastructure deals in both Jordan and Iraq. In Kuwait, the launch of a new MVNO is looming and we are well prepared to deal with the new competition.
Moreover, our operations in Iraq and Sudan experienced socio-political instability with Iraq continuing to be politically unstable, while also facing significant currency devaluation. Sudan witnessed occasional disruptions to the provision of internet services in the country for periods of time, which did eventually stabilize. In South Sudan, the entrance of a third operator in Juba is set to alter dynamics in the marketplace and we are also preparing for such a challenge. In Bahrain, the doubling of the VAT from 5% to 10% commencing January 2022, will impact consumer spending, a challenge we are prepared to cope with through customer centric initiatives.
Our digital verticals experienced significant growth across the ecosystem. The launch of Zain Ventures is a major step towards propelling digital innovations in the entrepreneurial start-up environment. Our investment in Pipe.com and swvl.com will further accelerate their growth across our footprint, as our digital investment team is set to play a strategic role in helping them realize more potential growth across our markets.
We have a priority today on obtaining a digital banking license and becoming the first telco-led challenger bank across the Middle East. We are keen on fostering innovations in the fintech space, given the success and exponential growth we have achieved to date with Tamam in Saudi Arabia, which is the first entity in the region to be licensed by a regulator to offer consumer micro loans via a digital app. Similar success is evident through Zain Cash in Iraq and Jordan, these significant Fintech moves leading to systemic change in the lending ecosystem.
Zain Esports also witnessed growth by partnering with multiple prominent developers to progress the gaming ecosystem, holding 24 tournaments during 2021 with over 20,000 participants and attracting over 40 million social media impressions. The Middle East is one of the fastest growing regions for gaming in the world due to its ever-growing youth bulge.
Climate action also continued to be a critical item for Zain as the effects of climate change are evident across regions. We launched several initiatives across our markets to further reduce our environmental footprint and moved towards setting in place mitigation and adaptation plans. We understand the risks that climate change bring to all, and we are identifying future opportunities to drive green solutions as well. Our aim is to continue furthering our agenda towards systemic change while simultaneously building resilience in our various communities.
We would like to extend our gratitude to His Highness the Amir of the State of Kuwait, Sheikh Nawaf Al Ahmed Al Jaber Al Sabah, His Highness the Prime Minister, Sheikh Sabah Al Khalid Al Hamad Al Sabah, as well as the members of the governments in which we operate, for their invaluable support, instrumental in the continued progress and achievements of our organization.
Sincerely yours,
Bader N. Al-Kharafi
