Dubai: Du’s Chairman Ahmad Bin Byat said Tuesday he does not expect the telecom operator to increase its share of dividend payments to the United Arab Emirates government.
The federal government relies on over 60 per cent of its budget from oil and gas sales and amid falling commodity prices economists have called on structural changes to the way the country raises revenue. Royalties paid to the government by the country’s telecom operators du and Etisalat are to be reviewed this year.
“We wait on instruction from the government, however, we don’t expect this to change,” Bin Byat told reporters at the World Government Summit in Dubai when asked whether he anticipates paying a larger dividend.
Du pays a percentage of its profit and revenue as a dividend to the UAE federal government, who owns 39.5 per cent of the telecom operator through its sovereign wealth fund the Emirates Investment Authority, Bin Byat said.
Last month, etisalat Group Chief Executive Ahmad Julfar also said that he didn’t expect there would be any changes in royalties paid to the federal government.
Bin Byat also said on Tuesday that du is currently not considering following etisalat in allowing foreign ownership of its shares.