Etisalat may merge UAE and group operations

UAE-based Emirates Telecommunications Corporation (Etisalat) plans to create a holding company to oversee its entire business as part of an organizational restructure, leading to the formation of an international arm and a merger of the company’s UAE and group operations, MEED reported.

The move could result in job cuts as Etisalat UAE, the domestic subsidiary of Etisalat, will be dismantled and its management and operations will be put under direct control of Etisalat Group, the report added.

The aim is to reduce costs by eliminating job duplications, sources aware of the matter were cited as saying. It is not clear how many jobs will be lost in the overhaul.

Etisalat did not respond to Argaam’s requests for comment.

The state-controlled telecom firm is the biggest-listed company in the UAE, with a market value of more than $42 billion. The firm is listed on Abu Dhabi Securities Exchange (ADX).

The new international arm will manage Etisalat’s business across different markets and will report directly to the holding company, the sources said.

The company is also said to be considering the option of selling shares in the international unit and listing it on one of the UAE exchanges, possibly the Dubai Financial Market (DFM), the sources added.