UPDATE 1-Zain telco shareholder sees Etisalat deal by end-Jan

(Adds detail, background)

KUWAIT Nov 29 (Reuters) - A top executive at a major shareholder in Kuwait's Zain (ZAIN.KW) said on Monday he expected a deal with UAE telecoms operator Etisalat ETEL.AD to close by mid to end-January if there were no obstacles.

"As soon as possible," said Bader al-Kharafi, vice chairman of Al Kharafi Group, told reporters on the sidelines of an event, when asked when the deal would be concluded.

"If there were no obstacles... God willing by mid or end-Jan, (it) will close," he added, referring to Etisalat's $12 billion offer to buy 46 percent of Zain.

Last month, Kharafi Group, one of Zain's major shareholders, said it gathered enough approvals from shareholders to tender to Etisalat's bid for a 46 percent stake.

The group had asked National Investments Co (NIC) (NINV.KW), which it owns, to secure the shareholder support required for the deal.

"Our discussions with Etisalat are ongoing... The gathering (of the shares) is good. and God willing it will exceed 46 percent," Kharafi told reporters. "We are in line with our agreement with Etisalat."

(Reporting by Ahmed Hagagy; Writing by Tamara Walid; Editing by Rachna Uppal)