Etisalat Group revenues rose 1 per cent during the first three months of the year, boosted by sales in the UAE and Egypt and the Maroc Telecom group.
Etisalat Group, the country’s largest listed company, said on Monday that revenues across its 18-country footprint rose to Dh12.9 billion during the first quarter, compared with Dh12.7bn a year earlier, with much of the growth coming from the UAE, Egypt and the sub-Saharan African operations of Maroc Telecom.
However, currency fluctuations hit the operator’s bottom line. Net profit across the group fell 8 per cent to Dh2bn during the quarter, compared with Dh2.17bn last year.
Etisalat said that higher minority interest costs ate into profits, which came in spite of lower royalty payments to the UAE federal government.
“Despite a challenging set of circumstances facing the telecoms industry today, Etisalat Group continues to deliver strong performance and value for its shareholders and customers,” said the group chief executive Saleh Al Abdooli. The telco last month said that it was undergoing an internal restructuring exercise, scheduled to be completed by June, following the departure of the former group chief executive Ahmad Julfar.
Mr Al Abdooli, who took up the reins of the group at the end of March, said the restructuring was designed to boost efficiency and enhance the customer experience.
The move comes as Etisalat faces increased competitive and regulatory pressures globally, particularly in both Nigeria and Pakistan, where subscriber numbers fell during the quarter.
The group’s total subscriber base stood at 165 million at the end of March, a year-on-year net loss of 1.8 million, affected by a lower user base in Pakistan and a disconnection programme in Nigeria linked to a regulator mandated SIM registration process.
However, UAE subscribers rose 6 per cent year-on-year to 12 million, thanks to a 7 per cent increase in mobile subscribers.
Etisalat shares ended the day down 2.1 per cent at Dh18.65.
jeverington@thenational.ae
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
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Director: Rupert Wyatt
Rating: 3/5
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Itcan profile
Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
The specs: 2018 Audi RS5
Price, base: Dh359,200
Engine: 2.9L twin-turbo V6
Transmission: Eight-speed automatic
Power: 450hp at 5,700rpm
Torque: 600Nm at 1,900rpm
Fuel economy, combined: 8.7L / 100km
