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Du to pay royalty fee of 15% net profit, 5% revenue

6 Feb 2012

In a statement to the Dubai Financial Market, the UAE’s second national operator Du has announced that it will pay a royalty fee of 15% of its net profit plus an amount equal to 5% of its revenue to the federal government for the year ended 31 December 2011. Early last year the government announced that Du would pay a royalty rate of 15% of net income for the year ended 31 December 2010. Du, which broke incumbent operator Etisalat’s monopoly in 2007, has been setting aside funds since 2008 for the payment of royalty fees, which the firm was not required to pay until it became profitable.

United Arab Emirates, Du (Emirates Integrated Telecommunication Company, EITC)

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