Mobile operator Zain is ramping up efforts in the Middle East, eyeing 10 million customers in Iraq by the end of this year and expansion in Saudi Arabia thanks to a network sharing deal with rival Mobily. Zain, previously known as Mobile Telecommunications Co., in December bought Iraqna Company for Mobile Phone Services Ltd. for US$1.2 billion from Egypt’s Orascom Telecom Holding and subsequently merged it with its Iraqi unit, MTC-Atheer. “We have 7.5 million [Iraqi] subscribers active now. Hopefully we get to 10 million by year end,” Zain’s general manager, Ali Al Dahwi, told Dow Jones Newswires.

Meanwhile the company’s Saudi Arabian operation has signed an agreement to use the national 2G and 3G networks of rival operator Mobily while it rolls out its own infrastructure. In a statement, Mobily said that it welcomes all competition, adding that it believes that Zain’s presence in Saudi Arabia will add value to the national telecoms market. Saudi Zain is expected to launch later this year. The financial terms of the deal, which includes national roaming, were not disclosed.