e& and du Contribute AED 3.54 Billion to UAE Government in 2024

07 Aug, 2024

e& and du Contribute AED 3.54 Billion to UAE Government in 2024

In the first half of 2024, UAE telecom operators e& and du collectively paid AED 3.54 billion in federal royalties. This marks a decrease from AED 3.73 billion paid during the same period in 2023, according to financial data from the Emirates News Agency (WAM).

e& contributed AED 2.749 billion, almost unchanged from the previous year's AED 2.75 billion, while du's payments fell to AED 797.6 million from AED 978.9 million. Over the past decade, from 2012 to 2023, e& and du have collectively paid AED 90.3 billion in royalties. e&'s total contributions amount to AED 70.6 billion, while du's total is AED 19.7 billion.

The royalty payments are regulated by the Ministry of Finance’s Royalty Guidelines, which mandate a federal royalty rate of 38% on net profits from UAE operations, excluding international earnings. The guidelines also establish minimum annual payments of AED 5.7 billion for e& and AED 1.8 billion for du, including a 9% corporate tax. These payments do not cover profits from international operations and investments subject to local corporate tax.