The UAE state-owned telecoms corporation Etisalat posted net profits of $654 million in 2000, up 21.7 percent on the previous year, the Emirates communications minister said in an interview published on Wednesday.
Ahmad Humaid Al-Tayer also told Gulf Today that Etisalat would retain its monopoly, ruling out a role for the private sector. Competition would not serve the national interests of the United Arab Emirates, the minister said.
Net profit rose from 1.971 billion dirhams ($537 million) in 1999 to a level of 2.4 billion dirhams ($654 million) last year, said Tayer, who is also chairman of Etisalat.
Calls have been heard from the private sector in Dubai, which is promoting itself as a regional Internet and multi-media hub, to break the monopoly to improve services and foster competition.
The OECD (Organization for Economic and Cooperation Development) last week said it would offer expertise to the oil-rich UAE on how to break Etisalat's monopoly over the telecommunications network in line with modern trends.
Deputy secretary general Herwig Schlogl said OECD models showed that the "state was not efficient and not presenting quality and good prices for users in the most competitive environment" when it held a telecoms monopoly.
The telecoms sector in all six Gulf Arab monarchies remains state-owned but Saudi Arabia and Oman have plans for privatization. — (AFP, Dubai)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)
