Etisalat mulls changes to foreign ownership rules

Shares in the UAE telco rose on speculation it may allow overseas shareholders


UAE telco Etisalat, saw its shares rise 1.4 percent on Sunday as it was reported its board may “soon” allow foreigners to own shares.

The Abu Dhabi-based operator’s Group CEO Ahmad Abdulkarim Julfar told Al Khaleej newspaper a decision on whether to allow foreign ownership of the company’s shares would be decided “soon”.

Etisalat, which is 60 percent owned by the UAE government, saw its shares rise 1.4 percent yesterday, the most since June 21. Earlier this month, Etisalat said it was up to the UAE federal government to decide on the issue.

Etisalat earlier this month announced a net profit after federal royalty of AED1.9bn ($517m) for the second quarter of 2012. The figure represented growth of three percent over the previous quarter, and a year-on-year growth of 17 percent on quarterly Group consolidated revenue of AED8.252bn, an increase of four percent year-on-year.

The company, the Gulf's No 2 telecom operator and present in 16 countries, said in a statement that revenue from international operations grew by 14 percent to AED2.3bn.

In the UAE, revenues declined by 0.4 percent to AED5.643bn due to lower voice revenues in both mobile and fixed segments.

Etisalat said it was focusing on creating value in high population, high growth markets such as Saudi Arabia, Egypt, Nigeria, Pakistan and Afghanistan.

It added that it maintained a solid financial position with a consolidated cash balance of AED10.5bn, leading to a positive net cash balance of AED5.2bn

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story