The government of the UAE has set royalties for the country’s two telecom operators, Etisalat and Du, for 2012 to 2016.
Between 2012 and 2015, Etisalat will pay 35% of its net profit and 15% of its revenues from its UAE operation as a royalty to the government. In 2016, the royalty on profits will be reduced to 30%.
Du, which launched services in the UAE in 2007, will pay a royalty of 5% of revenues and 17.5% of profit for 2012. Both fees will rise incrementally each year till 2016, by which time they will be equal to Etisalat’s payments.
Ahmad bin Byat, chairman of Du, welcomed the announcement. “This decision provides us with visibility for 2012 and subsequent years, giving Du and its stakeholders a sustained period of certainty in terms of our liability with respect to royalties payable to the Federal Government until 2016,” he said.