Etisalat is confident Saudi Arabia's Mobily will return to growth soon after the affiliate restated 18 months of profits this week, the UAE telecom operator said on Thursday.

On Monday, Mobily stunned investors by announcing it had cut its profits for 2013 and the first half of 2014 by a combined SR1.43 billion ($381.2 million) because of accounting errors.

Etisalat, which owns 27.5 per cent of Mobily, has "every confidence" in its affiliate "to overcome this temporary issue and return to growth again soon", Etisalat said in a statement.

"We understand further that the Mobily Board/audit committee have commenced a thorough review of the matter and we are discussing with them further actions that might be taken," the statement said.

"Etisalat supports the steps taken by the Mobily Board of Directors."

Etisalat's statement appears to have done little to bolster investor sentiment, with Mobily's shares down the maximum 10 per cent at SR58.50 as of 0801 GMT to reach a 27-month low.

Mobily's latest drop takes the stock's losses to 27 per cent since resuming trading on Tuesday.

Etisalat's chief executive Ahmad Julfar serves on Mobily's board, according to the UAE firm's 2013 annual report.

Serkan Okandan, Etisalat's chief financial officer, was appointed deputy chief executive at Mobily in mid-October this year. He remains Etisalat's finance head.

On Wednesday, Etisalat said it would cut its profits by $44 million due to Mobily's actions.  -Reuters