UAE’s du eyes fintech push with new central bank licences

The UAE’s second major telecoms network, du, is set to branch out into financial technologies (‘fintech’) amid the company having just secured digital financial services licences from the Central Bank of the UAE (CBUAE). 

In a statement released on Monday, Emirates Integrated Telecommunications Company PJSC (EITC), which operates du, announced that it has received licences from the Central Bank of the UAE (CBUAE) to introduce digital financial solutions into the local market. 

Fahad Al Hassawi, CEO of EITC, said, “The awarding of these licences underscores the UAE’s commitment to creating an environment that nurtures fintech innovation collaboration. We believe that EITC’s entry into digital financial services space will further enhance the financial landscape of the UAE through customer-centric solutions that will contribute to its growth and development.”

It’s unclear at this stage as to what digital financial services du could offer. But it’s not the first time a major telecoms player in the Emirates has received a licence from the CBUAE.

Back in 2019, the CBUAE granted a licence to Noor Bank and what was then Etisalat Group (e&) to provide eWallet services. In 2022, eWallet was rebranded as “e& money” and was expanded to provide its customers with “access to financial services such as merchant payments, money remittances, bill payments, lending, investments, network branded cards and insurance services.”

Major telco player

Any financial services offered by du will have a potentially big reach owing to the company being the UAE’s second major network operator, alongside e&.

According to the EITC’s full year 2023 financial results, its mobile customer base grew 8.3 per cent year-over-year to reach 8.6 million subscribers. 

Meanwhile, du also has an extensive fixed line network and here its customer base rose by 12.6 per cent year-over-year, hitting 604,000 subscribers.

The network operator is also listed on the Dubai Financial Market (DFM). Core shareholders are government-related entities (Emirates Investment Authority 50.12 per cent, Emirates International Telecommunications Company LLC 19.7 per cent, and Mamoura Diversified Global Holding PJSC 10.06 per cent).

It currently operates under two brands: du (launched in 2007) and Virgin Mobile, which started operations in September 2017.