Nokia Siemens Wins $935 Million Deal in Saudi Arabia

Nokia Siemens Wins $935 Million Deal in Saudi Arabia

Nokia Siemens Networks, the world's second-biggest maker of wireless networks, won a contract in Saudi Arabia valued at $935 million, among its biggest deals since the venture started in April.

The order includes building so-called second- and third- generation wireless networks for Zain in Saudi Arabia, Espoo, Finland-based Nokia Siemens said today in an e-mailed statement. The contract includes services and maintenance for five years.

Nokia Siemens, a venture between Nokia Oyj and Siemens AG, is relying on services to drive expansion and said last month growth will be ``very slight'' this year. The networks industry has been hurt by an order slump in Europe and North America, prompting Ericsson AB, the biggest wireless networks maker, to lower its sales forecast and Alcatel-Lucent to deepen job cuts.

``This deal is one of the most important in Nokia Siemens Networks' history, and also very strategic for growth in Africa as Zain is present in more than 14 countries in the region,'' Walid Moneimne, chairman of the company's Middle East and Africa region, said in the statement.

Asfat, Kuwait-based Zain agreed last year to pay $6.1 billion for a third phone license in Saudi Arabia. Its Saudi unit plans to sell shares this year to help fund the startup and invest $2 billion in the next five years.

Zain, formerly known as Mobile Telecommunications Co., was founded in 1983 and operates in 22 countries in the Middle East and Africa, where it uses the Celtel brand.