Dr Saad Al Barrak (pictured) has stepped down as boss of Zain, the Kuwati-based Middle East and African mobile giant. In a short statement to the Kuwaiti Stock Exchange, Zain said that Al Barrak has “handed in his resignation to the chairman of the board and the chairman will present the resignation to board members to look into the matter.” Al Barrak was both managing director and deputy chairman of the firm and his resignation could trigger a major shift in strategy at the group. Al Barrak – who has led the firm since 2002 – was responsible for an aggressive period of expansion, but progress has stalled recently following attempts to sell off a large chunk of the company. “His resignation will have a temporary negative impact on the company because he turned Zain into a global player and he has clearly left his mark on the company,” Naser Al Nafisi, general manager of Kuwait’s Al Joman Center For Economic Consultancy, told Dow Jones Newswires. Zain shares closed down 2.2 percent yesterday in response to the news.

Al Barrak’s stewardship at Zain was typified by its US$3.4 billion acquisition of Netherlands-based Celtel in 2005, which saw it enter numerous markets in Africa. However, Zain announced last year that it was putting many of its African networks up for sale after they proved to be less profitable than expected, jeopardising Zain’s much-publicised goal to become a top ten global operator by 2011. But plans for the Africa sale were put on hold last September when Zain agreed to sell a 46 percent stake to a consortium led by the Kharafi Group, one of its main shareholders. The deal is valued at US$13.7 billion, making it one of the largest transactions ever in the Gulf region. “I see [Al Barrak’s] resignation as a result of the different agendas between the shareholders and the management. He wanted to continue to build and grow the company,” added Simon Simonian, a telecom analyst at Shuaa Capital.