BCG report ranks UAE’s Etisalat as fourth top value creator in global telecoms.
Etisalat, a leading telecom operator in the United Arab Emirates (UAE), has been ranked as the fourth highest value creator globally in the telecommunications sector by the Boston Consulting Group’s (BCG) 2024 Telco Value Creators Report.
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From 2019 to 2023, Etisalat managed to create $18 billion in value, marking a substantial achievement on the international stage.
The BCG report, titled “A New Formula for Success: The 2024 Telco Value Creators Report,” showcases how telecom companies have navigated obstacles like stagnant revenue and varying returns on significant investments such as 5G technology. Despite these industry-wide challenges, Etisalat UAE has thrived by implementing a robust strategy to drive growth.
“The telecommunications industry has witnessed considerable shifts, with digitalization, innovative offerings, and strategic market positioning becoming more critical than ever,” said Nuno Gomes, Managing Director and Partner at BCG. “Our findings reveal that top-performing companies, like Etisalat, have excelled by safeguarding their core business and expanding -sometimes through partnerships – into new markets and technologies. This dual focus has driven their significant value growth over the past five years.”
The report is a blueprint for generating value in the telecommunications field, aligning with the UAE’s strategic intention to adopt an economy that’s knowledge-driven, and set foundational digital transformation objectives.
In this environment, the dynamic telecom operators similar to Etisalat are already well-prepared for the sustained growth and the enhanced competitiveness in the market during the evolving digital landscape.
Key Strategies for Telco Success in the UAE:
BCG’s extensive five-year analysis of 59 global telecom companies reveals the critical strategies for achieving a notable value creation and maintaining competitive edge into 2024 and beyond, including:
Uphold the Core: Strengthening foundational services with AI to enhance customer loyalty and satisfaction. Catalyze Growth Beyond the Core: Capitalizing on the burgeoning digital economy with novel services that resonate with the UAE’s progressive market demands. Optimize Asset Usage: Refining existing infrastructure to boost cost efficiency and service delivery. Streamline Costs: Employing automation and AI to enhance operational efficacy and curtail costs. Transition to Core-to-Cloud: Adopting cloud-based systems to foster flexibility and expandability. Implement Cutting-edge Network Design: Progressing network capabilities to facilitate the swift introduction of innovative services.
By incorporating these strategies, UAE telecom operators can create significant value, aligning with the UAE’s ambition to become a technology hub.
Transforming the Telecom Landscape in the UAE
Global telecom leaders are exploring the potential of the Generative Artificial Intelligence (GenAI), making progresses in automation, personalization, and process innovation.
In the GCC region in particular, GenAI could be a game-changer. Telecom companies are focusing on enhancing customer service through AI-driven chatbots, developing effective sales strategies with personalized marketing, and increasing operational efficiency through automation.
GCC telecom operators are encouraged to integrate GenAI into their strategies, adhering to the “10-20-70” principle: 10% effort in developing algorithms, 20% in setting up technological frameworks and crafting quality data streams, and 70% in driving operational change, focusing on staff, processes, and change management. The benefits of GenAI for UAE telecoms include cost reduction, product innovation, and improved customer experiences, setting a standard for other industries.
“The telecommunications sector is at the forefront of digitalization. To perform and outperform, telcos need to be agile in introducing novel offerings, and robust market-entry strategies are essential,” added David Panhans Managing Director and Senior Partner at BCG. “The tailored approaches to both the B2B and B2C segments are by comprehensive strategic planning. This adaptability is paramount in the contemporary digital arena, marked by swift and precise changes. Telcos like Etisalat in the UAE are flourishing and adeptly attuned to market requisites. ”
As the telecommunications industry continues to evolve and face unique challenges, companies like Etisalat can distinguish themselves through strategic vision and adaptability.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Total income was higher by 10% year-on-year (YoY) at AED 300 million in the six-month period
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United Arab Bank PJSC (UAB or “the Bank”) has announced its financial results for the six months ended 30th June 2024. UAB reported a net profit before tax of AED 152 million for H1 2024, a 26% increase compared to AED 121 million for H1 2023. The net profit after tax for H1 2024 stood at AED 139 million, up 15% from AED 121 million in the same period last year. Earnings per share rose to AED 0.07 in H1 2024 from AED 0.06 in H1 2023.
Total income increased by 10% year-on-year to AED 300 million for H1 2024, compared to AED 273 million for H1 2023, driven by a 26% increase in net interest income. The Bank’s capital position remains strong with a CET1 ratio of 13% and a total capital adequacy ratio (CAR) of 18%.
UAB‘s liquidity profile is robust, with advances to stable resources ratio of 75% and an eligible liquid asset ratio of 19%, both comfortably above regulatory thresholds. The Bank’s credit ratings were affirmed by Fitch and Moody’s at BBB+/Ba1, with stable and positive outlooks respectively.
UAB’s performance in the first half of 2024 demonstrates significant growth in total assets, increasing by 12% compared to December 2023, and reflects a strategic focus on quality and farsighted risk management. These results indicate that the Bank is well-positioned to continue its growth trajectory.
Commenting on the Bank’s performance, H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said: “UAB’s strong performance in the first half of 2024 reflects the successful implementation of our growth strategy and reinforces our commitment to delivering sustainable value to our shareholders. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”
He added: “As we move ahead into the second half of the year, we remain committed to enhancing our customers’ banking experience and contributing to the growth and prosperity of the UAE’s economy.
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: Our customer-centric approach and sustainable growth model has led to a 15% increase in net profit and a 12% growth in total assets. Our positive performance is a testament to the successful execution of our strategic priorities and clear evidence of the success of the many initiatives that have been implemented at the Bank. Going forward, we will continue investing in our growth strategy and digital capabilities, while equally focusing on developing innovative products and services that meet our customers aspirations whilst upholding the highest standards of compliance and internal controls.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
