UAE’s e& looks to expand in telecoms and other areas, including via M&A

A lady takes an image with a smartphone of the upscale Marina district from the Palm Tower in Dubai, United Arab Emirates, June 9, 2021. Image taken June 9, 2021. REUTERS/Christopher Pike/File Picture

DUBAI, Feb 26 (Reuters) – E& (ETISALAT.AD), the UAE telecoms group previously referred to as Etisalat, is seeking to increase into new markets in Africa, Europe and Asia and in areas exterior telecoms akin to monetary expertise as its seeks to drive development, its CEO advised Reuters.

The corporate is exploring a variety of potentialities, together with potential joint ventures, acquisitions and listings of subsidiaries, although it will wish to retain management of all its models, Group CEO Hatem Dowidar stated in an interview.

“Whereas telco is an effective enterprise, and we’re nonetheless specializing in telco – as for us it’s the money-generating money cow – the long-term development must be by growth,” Dowidar stated.

“Within the telco area, we’re geographic growth,” he stated, exploring markets in Africa, Europe and Asia with room for development, political stability and robust laws. He didn’t identify any particular goal markets.

The group has separated its enterprise into shopper services-focused e& life, e& enterprise to offer digital companies to authorities and enterprise, and telecoms arm Etisalat, which Dowidar stated is the world’s seventh largest by market capitalisation.

It has additionally arrange e& capital to drive acquisitions and mergers.

Dowidar stated a breakdown of how a lot every unit contributes can be shared with buyers “in a couple of months.” Whole income development at e& was 3% in 2021, whereas e& enterprise grew by 17%, he stated, including he anticipated development to speed up.

“We’re getting ready a couple of extra bulletins quickly in Egypt,” in addition to Pakistan, he stated. The announcement in Egypt can be associated to the fintech sector, he added.

The agency is open to potential offers with different massive telecoms suppliers, he stated. He didn’t count on any to enter the UAE, the place the federal government holds controlling stakes within the two telecoms suppliers, because of excessive penetration and already high-quality web speeds and repair.

“Given e&’s ambitions highlighted within the new working mannequin, we might think about elevating debt if an appropriate inorganic alternative materializes,” a consultant stated.

Whether or not fashionable internet-calling purposes like WhatsApp – which have lengthy been blocked within the UAE – can be allowed is as much as regulators, he added. WhatsApp and others had been allowed at Dubai’s Expo world honest.

“We’re prepared for no matter is available in the market … on the finish of the day, these purposes, all of them use knowledge. It would lower our voice utilization, however it would enhance our knowledge utilization,” Dowidar stated.

Reporting by Yousef Saba
Modifying by Mark Potter

Our Requirements: The Thomson Reuters Belief Ideas.