Du open to expanding non-core portfolio outside the UAE to build future momentum after record 2024

The Dubai telecoms operator posted new highs for profit and annual dividend

A du store in Dubai Hills. Net profit for 2024 leapt to Dh2.49 billion ($678 million). Photo: du

Emirates Integrated Telecommunications Company − the Dubai telecoms operator known as du − is open to expanding its non-core portfolio outside the UAE, looking to build momentum after posting record profit in 2024, its chief executive said on Monday.

Earlier on Monday, du had posted a 49 per cent annual jump in its 2024 net profit to a record Dh2.49 billion ($678 million), in a filing to the Dubai Financial Market, where its shares are traded.

While the company has repeatedly said it is not looking to expand its core telecoms business outside the UAE, du is willing to consider expansion in adjacent technologies elsewhere, Fahad Al Hassawi told The National.

These could include data centres, financial technology and other information and communications technology segments to complement du's main business, said Mr Al Hassawi.

"Anything outside the core business ... we do not have any restrictions, so we are willing to consider; when the right opportunity comes, we might do it outside the UAE," he said.

"We keep our doors open for anything [outside du's] core telecom business."

In the fourth quarter of 2024, du signed partnerships with the France-based Orange Alliance Programme and Spain's Telefonica, giving it access to the expertise of two of the world's biggest telecom groups.

Those partnerships "give us access to the knowledge and group leverage that both Orange and Telefonica exercise for their subsidiaries, so this is something that we also looking forward to maximising the benefit from in the coming years", Mr Al Hassawi said.

Any business expansion in sectors complementing telecoms – both within and outside the UAE – would potentially help complement du's revitalised strategy, under which it has introduced two new sub-brands amid the continued rise in demand for next-generation services in the Emirates.

In October, du unveiled du Tech and du Infra – in a major shake-up to its business-to-business operations aimed at addressing growing demand for digital transformation services in the UAE.

The introduction of the sub-brands will allow the company to dedicate more resources to their respective business segments and is the next step in the company's transformation and expansion, Mr Al Hassawi had said.

Fahad Al Hassawi, chief executive of du, said the company would be open to 'the right opportunity'. Pawan Singh / The National

Those units have, in part, helped du achieve its record net profit of Dh2.49 billion in 2024, boosted as well by cost efficiencies.

Revenue for the year rose 7.3 per cent to Dh14.64 billion, exceeding the guidance for 2024, du said.

For the fourth quarter of the year, net profit jumped 47.5 per cent to Dh585 million, while revenue increased 8.8 per cent to Dh3.87 billion.

The company also announced its highest-ever annual dividend of 54 fils per share − a 59 per cent year-on-year increase.

"We did extremely well on mobile, fixed [services] and even in the way we managed our expenses ... I have to attribute this to the strategy we started years ago and we have been consistent," Mr Al Hassawi said.

"We delivered on the strategy, focusing on the micro segments of the market and customer experience ... our sub-brands have also contributed to the strong growth in revenue."

Du has aggressively boosted its operations and services over the past year as it caters to the growing needs of businesses and consumers in an age where emerging technologies, including AI, the cloud and big data, have heavily influenced the telecommunications sector.

"Our outlook remains positive as we continue to progress on our transformation journey, prioritise emerging technologies, and strengthen our position in the telecom and ICT sectors to meet evolving market demands," chairman Malek Al Malek said.

The company will also start by offering cloud and AI services to government agencies by the first half of 2025, competing with major players such as Microsoft, Amazon and Google in the UAE market, its chief executive told The National.

Du will start offering its sovereign cloud and artificial intelligence services in the UAE in July, its chief ICT officer Jasim Al Awadi told The National last month.

They will be “affordable and accessible”, Mr Al Hassawi had previously said.