Competition is Good

'Every country needs a second telecom's operator,' says Du CEO Osman Sultan.

In the pre-IPO phase 50% of ownership was in the hands of the UAE government, and the remaining 50% split equally between Abu Dhabi's Mubadala Development Company and Emirates Communications Technology Company. Post-IPO up to 20% of the company can be owned by foreign individuals and institutions that will be allowed to buy shares in the Dubai Financial Market.

Mr. Sultan is unable to comment on financial projections due to the start of the IPO process. However, he notes that with a paid-up capital of $1.1 billion Du has sufficient funding to roll out its networks and that the company will not receive any of the proceeds of the IPO which will go to the founder shareholders who are selling a 20% stake in the group to UAE nationals only.

Etisalat has over 3 million subscribers. At the end of January 2006, the company announced $1.17 billion in net profits for 2005, a 25% increase over the previous year. The UAE government owns 60% of Etisalat.