e& and du Contribute AED 3.54 Billion in Royalty Fees to UAE Government in First Half of 2024

e& and du Contribute AED 3.54 Billion in Federal Royalties for First Half of 2024

UAE’s leading telecommunications companies, e& (formerly known as Etisalat) and Emirates Integrated Telecommunications Company (du), have jointly contributed AED 3.54 billion in federal royalty payments for the first half of 2024. This total represents a slight decrease compared to the AED 3.73 billion paid during the same period in 2023, according to the financial data released by the Emirates News Agency (WAM).

Breaking down the contributions, e& has paid AED 2.749 billion, which remains nearly constant compared to last year’s AED 2.75 billion. On the other hand, du’s contributions have decreased to AED 797.6 million from AED 978.9 million in the previous year. This decrease reflects a shift in du’s financial performance or other operational factors affecting its revenue.

The cumulative royalty payments from both companies over the past decade, from 2012 to 2023, amount to a substantial AED 90.3 billion. e& has been responsible for AED 70.6 billion of this total, while du has contributed AED 19.7 billion. These payments are regulated by the Ministry of Finance’s Royalty Guidelines, which stipulate a federal royalty rate of 38% on net profits derived from UAE operations, excluding any revenues generated from international operations.

The guidelines also mandate minimum annual payments of AED 5.7 billion for e& and AED 1.8 billion for du. This includes a corporate tax rate of 9% on their profits. Notably, these royalty payments exclude profits from international operations and investments that are subject to local corporate tax rules.

These payments underscore the significant financial contributions that e& and du make to the UAE’s economy. Their adherence to these regulations not only supports the federal government’s revenue but also reflects their crucial role in the nation’s financial system.

Despite the overall decrease in total royalty payments compared to the previous year, the consistent contributions from e& highlight its stable financial performance and continued adherence to the regulatory framework. Meanwhile, du’s reduction in payments may signal changes in its financial landscape or operational challenges.

Both e& and du are integral to the UAE’s telecommunications infrastructure, and their substantial royalty payments demonstrate their commitment to supporting the country’s economic stability and growth. Their financial contributions play a vital role in maintaining the UAE’s robust economic framework and highlight their ongoing influence in the telecommunications sector.

As these companies continue to navigate the competitive market and regulatory environment, their contributions reflect their impact on the UAE’s economy and their alignment with federal financial policies.