In the world of MENAP business, a 23% revenue jump for a multi-billion-dollar entity isn’t just growth. It is a structural shift. e&’s FY 2025 results report AED 72.9 billion in revenue. A huge 33.6% surge in net profit (AED 14.4 billion). This represents the successful completion of one of the most ambitious corporate pivots in regional history.
For investors, founders, and tech leaders, this report is a roadmap for how a legacy “utility” transforms into a diversified digital conglomerate. So e& is no longer just selling minutes; it is selling cloud infrastructure, AI governance, and fintech ecosystems.
1. The Strategy of “Aggressive Diversification”
The most striking figure in this report isn’t the profit, but the 31.3% growth in the subscriber base to 244.7 million. This scale was achieved through a surgical M&A strategy. This path moved e& beyond the saturation of the GCC into Central and Eastern Europe (via PPF Telecom). It even went deeper into the South Asian market (through the Telenor Pakistan acquisition).
Analytical Insight for Investors: e& is successfully hedging against regional geopolitical volatility. Its moat is a huge “connectivity corridor” that spans from Miami to Johannesburg to Islamabad. By diversifying its geographic risk, e& has transformed its balance sheet into one that looks more like a global tech giant (Alphabet or Tencent) than a localized regional operator.
2. Vertical Integration: The “Everything App” Reality
Many startups struggle to build a “SuperApp.” On the other hand, e& has used its massive balance sheet to build an ecosystem where the user never needs to leave the “e& family.”
- Fintech (e& life): With 1.76 million cards issued and transaction values growing 2.8x, e& money is no longer a “value-added service.” It is a challenger bank.
- Enterprise AI (e& enterprise): The launch of the Sovereign Cloud Launchpad with AWS and the AI inference platform with Dell proves that e& is positioning itself as the primary landlord of the UAE’s digital data.
- Entertainment: The merger of STARZPLAY and evision created a regional content powerhouse with 10.6 million installs.
Practicality for Founders: For tech entrepreneurs in MENAP, e& is moving from being a service provider to a platform competitor. If you are building in fintech or streaming, e& is either your most formidable competitor or your ultimate exit partner. Their “Afaaq” program is now aiming to train 30,000 people in AI. It is essentially a talent-seeding mission to ensure the region has the workforce to sustain their ecosystem.
3. The 5.5G and 6G Frontier: Infrastructure as a Moat
Technological superiority remains e&’s “moat.” The transition to 5.5G (RedCap technology) and trials of 6G terahertz frequencies aren’t just vanity projects. They are the essential infrastructure for the next wave of MENAP innovation: autonomous vehicles, smart city IoT, and remote industrial automation (as seen in their private 5G work with EMSTEEL).
Impact for the Tech Sector: By achieving a 99.5% fiber-to-the-home coverage rate in the UAE, e& has effectively “de-risked” the digital economy. Startups can now build high-bandwidth applications (VR, GenAI, Real-time 3D) with the certainty that the infrastructure can support them.
4. The Changing of the Guard: Leadership Continuity vs. New Vision
The announcement that Hatem Dowidar will step down in March 2026 marks the end of a transformative era. Dowidar was the architect of the rebrand from “Etisalat” to “e&,” a move that signaled the death of the “Telco” moniker.
The appointment of Masood M. Sharif Mahmood as the dual Group CEO and e& UAE CEO is a strategic consolidation. Masood has led the UAE operations through a period of record fiber deployment and 5G leadership.
Analytical Insight: This “internal promotion” suggests that the Board is doubling down on the current trajectory. Expect Masood to focus on operational synergy, ensuring that the expensive international acquisitions (like the Telenor and PPF deals) finally begin to yield consolidated efficiencies and cross-border fintech integration.
5. Sustainability and Social License
The launch of the first GCC sustainability hackathon and the “Father’s Endowment” participation indicates that e& understands the “S” and “G” in ESG. In an era where institutional investors (especially from Europe) demand carbon-neutral roadmaps, e&’s focus on energy-efficient networks is a calculated move to maintain a high ESG rating (such as the “S-Class” rating under the Dubai AI Seal).
The 2026 Outlook
e& is entering 2026 with a 95 fils per share dividend target, a clear signal of cash-flow confidence. For MENAP investors, the takeaway is clear: e& is the region’s “defensive tech stock.” It offers the stability of a utility with the upside of a high-growth tech venture.
As the group expands its AI Academy and partners with entities like Space42 for satellite connectivity, the boundary between “the internet” and “e&” in the Middle East is effectively disappearing. For the regional tech sector, the challenge, and the opportunity, lies in navigating the shadow of this record-breaking digital leviathan.