ZAIN HOMEPAGE

BOARD OF DIRECTORS

BOARD OF DIRECTORS
MESSAGE

2018 AT A GLANCE

KEY MILESTONES

VICE CHAIRMAN & GROUP
CEO STATEMENT

GROUP KEY PERFORMANCE
INDICATORS

OPERATIONS OVERVIEW

A YEAR IN REVIEW

THE WORLD OF ZAIN

OPERATIONS SNAPSHOT

REGULATORY LANDSCAPE

OUR STRATEGY

TOGETHER WE ARE ZAIN

TECHNOLOGY

ZAIN DRONE

COMMERCIAL

CORPORATE
SUSTAINABILITY

ANNUAL CORPORATE
GOVERNANCE REPORT

CONSOLIDATED ANNUAL
FINANCIAL STATEMENTS
AND INDEPENDENT
AUDITOR'S REPORT

Table of Contents

CORPORATE
SUSTAINABILITY

For Zain, 2018 continued to be a year of significant growth in the area of Corporate Sustainability. The Group maintained efforts to advance its sustainability agenda and set in place key performance indicators with the aim of developing a more structured and measured approach for all its markets. Zain further aligned to planetary boundaries and social thresholds integrating the measurements to the UN Sustainable Development Goals (SDGs).

Last year also marked the formal launch of the Zain Youth Platform across Zain markets with the objective to have a more strategic approach to youth development and empowerment.

The year also saw Zain Group’s 4th consecutive year of partnering the MIT Enterprise Forum Pan Arab Startup Competition with the final being held in Muscat, Oman in April 2018.

The various operating companies within Zain Group took great strides to address key deficits by launching or continuing with programs and initiatives that provide immeasurable value to all. The programs ranged from providing greater engagement within the community to playing a role in helping facilitate educational needs. The various initiatives are all linked to the SDGs as a key objective. These activities ensured that our various communities benefit directly from the programs that are introduced.

As in previous years, Zain will provide in-depth information on the various corporate sustainability activities in the annual Zain Group Sustainability Report. For further details, please visit: www.zain.com/en/sustainability

BAHRAIN

ZAIN COMMUNITY ENGAGEMENT PROGRAM

Zain Bahrain’s Community Engagement Program aims to instill a culture of volunteering into the company by providing employees opportunities to give back to the community. Established in 2018, the program aims to contribute to various areas such as health, the environment, gender equality, youth mentorship programs and capacity building. Through a well-rounded engagement approach, Zain Bahrain was able to establish several partnerships with organizations that included National Bank of Bahrain Elderly Home, Salmaniya Hospital, The Cancer Ward, Bahrain Society for Training and Development, Women Tech Makers, and Bahrain Philanthropic Society. During the year, Zain Bahrain was able to provide 69 volunteering opportunities with more than 80 employees participating in the various programs.

GOOGLE DEVELOPER GROUP WOMEN TECH MAKERS

In partnership with Google Developers Group (GDG) Manama, Bahrain, Zain entered a memorandum of understanding that aims to further Zain’s leadership position in empowering women in the technology space. Through this partnership, Zain Bahrain will provide access to its facilities to host events and workshops, provide knowledge exchanging opportunities with Zain employees, and encourage and promote entrepreneurship and innovation in the field of technology. In 2018, 25 women participated in the GDG Women Tech Makers events and workshops.

IRAQ

JAMEATY IN PARTNERSHIP WITH MINISTRY OF EDUCATION

In 2018, Zain Iraq launched the Jameaty initiative, which aims to fulfill the needs of the scientific and administrative departments in public and private universities. Through the initiative Zain Iraq distributed 1680 printers, more than 500 ZainFi devices, and 4800 e-Go devices. Additionally, e-Go modems were provided to high-achieving students in each university as a form of recognition for their hard work and accomplishments. Through this initiative Zain Iraq was able to fulfil social opportunities and improve the quality of education for students attending universities in Iraq.

KNOWLEDGE SPACE Knowledge Space is a newly formed coding and technology developer space, which is a collaborative work space created to support the making, learning, exploring and sharing of knowledge in the fields of science, technology, engineering and math (STEM). This space is considered the first supporting facility for the ICT community in Kirkuk. Through this facility, training programs are being offered in topics such as 3D printing and data science.

KUWAIT

ZAIN KUWAIT AND CODED In order to address the skills gap occurring across the region, Zain Kuwait, in partnership with Coded, created a training program for young people, which teaches coding and technology using robots, arts and science, by utilizing the latest tools and technologies. The four-week program covered introductory topics to coding and robotics such as block coding, text coding, python, coding logic, sensors, building a computer, and robotic controls. Some of the tools used included KANO Computer Kit, Sony KOOV Kit, Lego Boost, Lego Mindstorm, Cubetto, and Bottley. 39 students were trained through the Coded Junior Summer Camp.

ZAIN KUWAIT PARTNERSHIP WITH LOYAC

Zain and LOYAC’s strategic partnership is centered on the development of the Education and Youth sectors in Kuwait. Through this partnership, Zain engages with various public, private, and non-profit organizations that cater to youth’s talents and skills, ultimately contributing to the further progression of the national economy. Through the partnership Zain has been able to support KON, a social entrepreneurship program, offered in Kuwait in collaboration with Babson College in Boston. Another program established through this partnership is the IFAD Internship Program, where talented young Kuwaiti are sent abroad to learn from international experts. Lastly, LOYAC AC Milan Soccer School is a program that has become one of the leading soccer schools in the region over the course of its nine years of existence. Since inception, Zain’s partnership with LOYAC has been able to impact more than 52,000 students positively.

This year, the partnership was involved in the following programs:

Kon Social Entrepreneurship Program: 54 entrepreneurs

Cultural Awareness Committee: 24 volunteers

Media Awareness Committee: 27 volunteers

Environmental Awareness Committee: 13 volunteers

AC Milan Soccer School: 300+ registrations

SAUDI ARABIA

MITEF PAN ARAB STARTUP COMPETITION Zain’s annual partnership with MITEF Pan Arab Startup Competition aims to create opportunities for growth and development in the MENA region based on innovation and value creation. The competition, saw a local version hosted in Saudi Arabia, is divided into three main categories: Ideas, Startups, and Social Entrepreneurship. Each of these tracks has three winners who were awarded cash prizes and other benefits including training, mentorship, media exposure and networking opportunities. Various stakeholders supported the competition along with Zain KSA and included the General Authority for Small and Medium Enterprises; Kind Abdullah Economic City; King Khaled Foundation; Saudi Aramco Entrepreneurship Center Wa’ed; Saudi Investment Bank; Microsoft; Oracle, and others.

COOPERATIVE TRAINING Zain Saudi Arabia is committed to upskilling, training and recruiting nationals, and as a result the company has collaborated with Saudi University to provide co-operative training opportunities for undergraduate students. Upon completion of the program, Zain Saudi Arabia was able to hand pick top performers to become full-time employees, providing them meaningful employment. This year, the company hired 30% of those who completed the training program.

JORDAN

MOBILE CLINIC FOR CHILDREND Ongoing since 2002, Zain Jordan’s Mobile Clinic provides health services for hundreds of children in remote areas across the Kingdom. The clinic offers free medical consultation, dental treatment and medication dispensed by a fully equipped and qualified medical team. To ensure children receive quality treatment, the clinic facilitates patient transfers to different health centers and hospitals under the Ministry of Health network of affiliates. Serving children up to the age of 15 years, the clinic treated 200,000 children in 2018.

KNOWLEDGE STATIONS

In 2018, Zain Jordan provided connectivity to six knowledge stations across the Kingdom. This initiative was undertaken in collaboration with the National Information Technology Center in several governorates including Amman, Karak, Ma'an, Na'our, Jordan Valley and Irbid. Through the Knowledge Station, approximately 8,620 people are estimated to have benefitted from the services. Objectives identified for the Knowledge Stations include:

Bridging the digital divide in Jordan across its governorates

Enhancing the use of ICT in the Kingdom to improve socio-economic development

Improving IT literacy and skills by providing training and education in ICT

LEBANON

TOUCH INNOVATION PROGRAM (TIP) The touch Innovation Program’s objective is to create an initiative that supports startups, while nurturing a pool of high-potential entrepreneurs to be able to invest in. The selected “touch innovators” are offered benefits set to develop of their ideas and businesses further. TIP identifies and selects 8-12 startups every year with six companies being selected to participate in the initiative every six months. Those selected entities are given access to touch Lab, touch’s flexible work space that accommodates meetings, product launches, workshops, and training courses.

TOUCH IN PARTNERSHIP WITH FE-MALE touch, in partnership with Fe-male, established a nine-month training program targeting young girls and women in Bekaa and Akkar. This training program offered women part-time courses on ICT-related skills such as computer literacy, the use of smartphones, and social media tools. The participants were educated on cybercrimes, cybersecurity, and how to overcome online attacks. The program also extended to awareness raising sessions on women’s rights, business planning, entrepreneurship, leadership, public-speaking, decisionmaking, and self-assertion. Women living in rural areas often suffer from a lack of access to education and knowledge on their rights. The skills and knowledge gained from this program will allow the participants to play a more active role in their communities, contributing to society and positively impact future generations. 60 women have completed the training.

SUDAN

STUDENT MEAL PROJECT In collaboration with Mujdidoon Organization, Zain Sudan provided annual Iftar meals to ensure temporary food security for those who are less fortunate. Since its launch in 2011, 3,000 meals per day every year have been handed out to students in Khartoum. Every year, approximately 528,000 meals are given out to students in need, adding up to in excess of 4.22 million meals having been distributed during the life-time of the initiative.

ZAINX Established in 2017, ZainX is an annual event in which people with disabilities are given a platform to share their stories and experiences that shed light on the challenges they face. This year, more than 70 candidates from across Sudan applied to represent the disabled community in the event and eight representatives were selected. Two blind people participated, as did two deaf and mute people, two physically disabled participants, and two with developmental disorders such as autism. The TEDx inspired event attracted 700 attendees including three ministers and heads of universities and NGOs.

SOUTH SUDAN

ZAIN YOUTH (ZY) INITIATIVES Under the Zain Youth (ZY) Platform established in 2018, Zain South Sudan launched a variety of initiatives that aim to develop the youth through capacity building projects, programs in schools, and spreading awareness on inclusivity. This platform targets the youth segment from ages 18-30 years old. As such, stringent KPIs were put into place to measure the impact of the programs and ensure the targets are being met. Under ZY, Zain South Sudan launched an entrepreneurial business training program that targets some of the most vulnerable populations such as single mothers, girls who have dropped out of school, and widows with HIV/AIDS. Moreover, on International Hand Wash Day the company organized an event to raise awareness on the importance of handwashing with soap as it is an effective and affordable tool that significantly minimizes diseases and illnesses. 15 schools participated in the event and 6,150 school children attended.