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

UAE telecom operators e& and Emirates Integrated Telecommunications Company (du) paid a combined AED 3.54 billion in federal royalties for the first half of 2024, a decrease from AED 3.73 billion in the same period in 2023, according to financial data from the Emirates News Agency (WAM).

The breakdown shows e& contributing AED 2.749 billion, nearly consistent with the previous year's AED 2.75 billion, while du's payments dropped to AED 797.6 million from AED 978.9 million.

From 2012 to 2023, the two companies paid a total of AED 90.3 billion in royalties, with e& accounting for AED 70.6 billion and du contributing AED 19.7 billion. The royalty payments are governed by the Ministry of Finance's Royalty Guidelines, which outline that a federal royalty rate of 38% is applied to the net profits from UAE operations, excluding international earnings.

The guidelines also specify minimum annual payments of AED 5.7 billion for e& and AED 1.8 billion for du, including corporate tax at a rate of 9%. These payments exclude profits from international operations and investments subject to local corporate tax.

News Source: Emirates News Agency