Etisalat AnnualReport2013 English

Annual Report 2013
Table of contents
02
Key Highlights of 2013
04
Business Snapshot
06
Chairmans Statement
08
Board of Directors
10 Timeline
12
Chief Executive Officers Statement
14
Management Team
18
Etisalat Group Strategy
20 Awards
22
Operational Highlights
26
Our International Presence
30
Management Review
Middle East

Africa

Asia

Etisalat Services Holding

Human Capital

Corporate Social Responsibility
54
Corporate Governance
57
Independent Auditors Report to the Shareholders
58
Consolidated Income Statement
59
Consolidated Statement of Comprehensive Income
60
Consolidated Statement of Financial Position
61
Consolidated Statement of Changes in Equity
62
Consolidated Statement of Cash Flows
63
Notes to the Consolidated Financial Statements
112
Notice of General Annual Shareholders Meeting
30
38
44
48
50
52
Etisalat
01
Key highlights of 2013
18.9
38.9
Billion Revenue
AED
Billion EBITDA
7.1
AED
Billion Net Profit
6.3
AED
Billion CAPEX
70
Fils
Dividend per share
AED
148
Million
Aggregate Subscribers
Business Snapshot
Aspire
To lead
Etisalat is an
international,
blue-chip
organisation
with operations
in 15 countries
across the Middle
East, Africa and
Asia. It is one
of the leading
telecom operator
with one of the
largest market
capitalization
among Middle
East, African and
Asian telcos.
It is a highly rated telecom company with
ratings from Standard & Poors, Moodys
and Fitch (Aa3/AA-/A+); with low leverage
and strong UAE Government support.
Etisalats focus is on delivering innovative
solutions to transform the communities
in which it operates and fast track social
development and economic growth. This
is underpinned by its commitment to
actively develop and engineer platforms
for growth within the local markets in
which it operates through the deployment
of advanced technologies, quality
networks and customer focused services.
Etisalat became one of the worlds fastest
growing telecom operators; with customer
numbers growing from 4 million to over
140 million in less than 10 years. Its
international acquisition programme
04
Annual Report 2013
began in earnest in 2004 through the

award of the second mobile license,
and the first 3G license in Saudi Arabia.
Since then the company has witnessed
rapid expansion, across the Middle East,
Africa and Asia through acquisitions and
organic growth. Etisalat now has access
to a population of close to 700 million
people, with Thuraya; its satellite network
provider covering over two thirds of the
planets surface.
The three key pillars of our strategy
involve owning and managing an
attractive well balanced portfolio of assets
consisting of controlling stakes in well
positioned operators in target markets.
Our second pillar involves providing
differentiated, innovative service offerings
that leverage our broadband infrastructure
and networks. Superior customer
experience resulting from Etisalats
operational excellence is our third pillar.
We aim to pro-actively and consistently
serve our customers with a common
set of brand values based on in-depth
customer understanding and building
trusted relationships. We will manage this
through a strong focus on the efficiency
and effectiveness of our operational
processes throughout our footprint.
operates the Middle Easts largest LTE

network with population coverage
exceeding 82 per cent. Etisalat offers
both the Middle Easts fastest fixed
line broadband service with speeds of
up to 500Mbps - the highest mobile
broadband connectivity speeds to
date. It has also launched several 3G
networks in its footprint including
Egypt Afghanistan; Ivory Coast and
Benin. These advancements have helped
Etisalat capture market share with the
introduction of mobile broadband services
and affordable internet access.
Etisalat is committed to the principles of
corporate social responsibility through
strategic partnerships to increase access to
education and health care via technology.
Under the banner Etisalat for Good,
Etisalat and its operating companies
have been actively working on Mobile
for Development initiatives in 2013, in
collaboration with its global partners.
The efforts have helped bridge the gap
between emerging markets and developed
nations, while generating impressive
digital dividends in the form of jobs,
economic growth and stability.
For nearly 40 years, Etisalat has helped

the UAE sustain its position as the
regions hub for business, trade and
foreign investment by providing reliable
and high quality services. Earlier in the
year, Etisalat UAE successfully completed
the rollout of its fibre-to-the-home
(FTTH) network across 1.3m homes in the
country. This achievement contributed to
UAE being ranked as a global leader in
connecting homes in the country on the
FTTH network. The advanced infrastructure
allows the utilisation of the most
advanced technology applications to the
UAE market.
Etisalat has launched 4G mobile services
in the UAE and Saudi Arabia, and today
Etisalat
05
Chairmans Statement
Growing Through
Innovation
Last year, Etisalat

witnessed
encouraging
financial results.
Increased revenues
and profits and a
growing customer
base have put
Etisalat in a strong
position to embrace
the changes that
are enveloping the
telecoms industry
and have enabled it
to continue to add
value to customers,
shareholders and
the communities in
which we operate.
Over the past year we have started to
detect a cultural change throughout
the corporation, as a new approach
encouraged by the leadership cascades
to our teams on the ground throughout
the Middle East, Asia and Africa. This
paradigm shift is the evolution of Etisalat
into a brand that will not just offer its
customers products and services, but one
that will provide them with a complete
experience every time they interact with
Etisalat. By putting customers at the heart
of everything we do, we are enabling our
current success and planting the seeds of
future growth.
This is an encouraging step that has
put us firmly on the path to reach our
aspiration of becoming the leading and
most admired telecoms operator in all
our operating markets. Being an industry

leader is about more than just securing
a large market share in each country. It
is about driving innovation, satisfying
customers and engaging with communities
for the benefit of all of society. We
want to be a trusted companion to our
customers, helping them navigate the
digital world. We know the technological
advances sweeping through the industry
can be daunting for many consumers,
it is therefore our job to simplify and
explain the changes in terms everyone can
embrace. The customers journey is never
over and we must constantly grow to
meet their ever increasing demands.
As I have already said, proof that we
are on the right track is in our financial
results and growth. Over the past year,
Etisalats revenue grew 18 per cent to
AED 38.9 billion and the consolidated
net profits after Federal Royalty of
grew 5% to AED 7.1 billion. Those are
impressive indicators by any standard and
testament to the strategic direction of the
corporation. Given such strong financials
the board decided to recommend dividend
distribution of 70 fils per share for fiscal
year 2013.
Our aspiration to grow and develop was
epitomised last year by the potential deal
with Vivendi to buy its shares in Maroc
Telecom. We reached an agreement on
key terms and signed a Share Purchase
Agreement following the completion of
a series of successful negotiations. When
Maroc Telecom profitable operations are
added to our global footprint, we will
have a very strong portfolio in West and
North Africa.
By investing in Maroc Telecom, Etisalat is
investing in the future of Africa. The deal
follows a global trend of consolidation
in the industry and it is another step
toward becoming an admired operator. By
admired, I mean that we should actively
participate in local growth, give local
businesses and communities the means
to grow and develop, provide jobs, release
new innovative products that can be

harnessed in education and healthcare,
and give directly to good causes through
socially responsible initiatives.
Innovation is at the heart of everything
we do, whether it is pricing, developing
networks, diversifying products and
services or giving back to society. Another
area that was fertile soil for innovation
this year was in striking up partnerships
that will benefit our organisation and
add value to the end user. These include
agreements with MasterCard to bring the
award-winning mobile commerce solution,
Flous, to some of our African operations,
and joining the machine-to-machine
(M2M) World Alliance, an organisation
dedicated to advancing this exciting new
technology.
Innovation in digital products and services
throughout the group has continued to
be led by the Digital Services Unit. This
talented group of individuals is driving
best practices across Etisalats operating
countries and developing transformational
innovative solutions.
Etisalats growth to become one of the
industrys largest companies brings new
opportunities, but it also brings new
challenges. Large organisations are at
risk of becoming too slow to adapt to
changes in the marketplace, especially in
a dynamic environment such as telecoms.
We must therefore always be on our guard
and leverage the size of the network and
vast expertise amongst employees to the
benefit of each operating country.
Finally, I would like to thank the
Leadership of the UAE and our
shareholders for their continued and
unwavering support; our employees for
their dedication and most of all our
customers for their loyalty and faith in our
services. On the back of such a successful
year, we are looking to the future with
confidence that we will continue our
emergence as one of the best telecoms
operators in the world.
Eissa Mohamed Al Suwaidi

Chairman
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Annual Report 2013
Etisalat
07
Board of Directors
Eissa Mohamed Al Suwaidi
Chairman
Investment & Finance Committee
Sheikh Ahmed Mohamed Sultan

Bin Suroor Al Dhaheri
Member
Audit Committee
Mohamed Hadi Ahmed Abdulla

Al Hussaini
Member
Abdulfattah Sayed
Mansoor Sharaf
Member
Abdelmonem Bin Eisa

Bin Nasser Alserkal
Member
Nomination & Remuneration Committee
Shoaib Mir Hashim Khoory
Member
08
Annual Report 2013
Khalaf Bin Ahmed Al Otaiba
Vice Chairman
Member-Investment & Finance Committee
Abdulla Salem Al Dhaheri
Member
Chairman-Nomination &
Remuneration Committee
Mubarak Rashed Al Mansouri
Member
Mana Mohamed Saeed Al Mulla
Member
Audit Committee
Essa Abdulfattah Kazim
Member
Chairman-Audit Committee
Hasan Al Hosani
Corporate Secretary
Etisalat
09
Timeline - History of Etisalat
Our Journey
2004
Etisalat wins the second
license to operate in Saudi
Arabia thereby introducing
Etihad Etisalat Mobily.
1983
The ownership structure
changes: The United Arab
Emirates government
acquires a 60 per cent
share in the company and
the remaining 40 per cent
is publicly traded.
1982
The Emirates
Telecommunications
Corporation launches
Middle Easts first mobile
network.
1976
The Emirates
Telecommunication
Corporation is founded.
10
Annual Report 2013
1999
1995
Internet services are rolled
out across the country,
another first in the region.
Etisalat opens its SIM card
factory, Ebtikar, in Ajman now regarded as one of the
best industrial
organisations in the UAE
and a leading provider of
smart card solutions.
1994
Middle Easts first GSM
service is introduced in the
UAE.
Etisalat also launches
Emirates Data Clearing
House, now one of the
worlds leading clearing
houses - providing complete
solutions to GSM operators,
who in turn, provide roaming
facilities to their customers.
The Middle Easts first

broadband Internet service
using the latest ADSL
technologies is introduced.
Etisalat buys a stake in
Tanzanian operator Zantel,
its first step towards
becoming a major
international telecoms
group.
It also buys a stake in

Canar, a new fixed line
operator in Sudan.
2003
Etisalat launches Middle
Easts first 3G network and
offers MMS services to its
customers.
2006
Etisalat wins the third
mobile license in Egypt and
launched the countrys first
3G network networks.
It is also awarded a license
to provide mobile services
in Afghanistan.
Etisalat Services Holding is
formed to manage eight
business units that offer
mission-critical telecoms
related services to the
industry. This includes
EDCH, e-Marine, Ebtikar,
Etisalat Academy, E-Facility
Management, e-Real
Estate, Etisalat Directory
Services and Tamdeed.
2005
1996
Etisalat becomes one of the
founding investors in
satellite
telecommunications
provider, Thuraya.
2000
Mobile subscribers exceed
the 1 million mark as
mobile data services is
introduced using eWap.
Etisalat introduces the
E-Vision brand for its cable
TV services.
Etisalat acquires a stake

and takes management
control of PTCL, the
incumbent operator in
Pakistan.
Etisalat expands into West
Africa by taking a stake in
Atlantique Telecom whose
operations in Benin,
Burkina Faso, the Central
African Republic Gabon,
Ivory Coast, Togo, and
Niger.
2013
2008
Etisalat completes the
rollout of a nationwide
fibre optic backbone over
which next generation
services will be provided
in the UAE.
Etisalat is named Largest
Carrier in the Middle East
in the Financial Times Top
500 list.
2007
Etisalat acquires a stake in
a green-field operator in
Nigeria, the largest and
fastest growing market in
Africa.
Etisalat introduces mobile
TV and officially launches
its wholesale business unit
as The Smart Hub for the
Middle East.
2011
Etisalat introduces the first
real 4G (LTE) experience to
its customers in the UAE.
2009
Etisalat acquires Tigo, a Sri
Lankan operator, which is
later rebranded to Etisalat
Lanka.
Etisalat signed SPA with

Vivendi to acquire Vivendis
53% stake in Maroc
Telecom Group.
Etisalat Benin obtained a
Universal Mobile Service
License which covers 2G,
3G, 4G and any other
mobile technologies
available in future in
Benin.
2012
Etisalat won 3G license in
Afghanistan and Ivory
Coast and launched the
first 3G services in history
of Afghanistan.
Etisalat won three GSMA
awards in the Best Mobile
Health Innovation and
mWomen Best Mobile
Product categories for its
mobile health innovation
Etisalat Mobile Baby, as
well as the Best Mobile
Money Innovation award.
Etisalat
11
Aspire
Forward
Chief Executive Officers

Statement
If I had to summarise
this year in one word
it would be growth.
As we continue our journey from
being a provider of fixed and mobile
communications to a company that offers
and enables the use of a vast number of
innovative digital products and services,
the relationship with customers is growing
deeper too. That is why we speak about
adding value. We are providing our
customers with the tools to solve problems
in their daily lives.
Aspiring forward, we have adapted to this
evolution admirably so far, even though
there is more work to do. And while it is
important to recognise the challenges, it
is just as important to recognise, and take
comfort from our success, and indeed
celebrate it. The results this year are a
clear indication that we are on the right
track. In 2013, aggregate subscribers,
grew 7 per cent to reach 148 million and
Group revenues grew by 18 per cent to
reach AED 38.9 billion. Revenue continues
to be boosted by our solid growth in the
UAE and international markets, which
now account for 36 per cent of the
consolidated revenue. Our net profit after
Federal Royalty reached AED 7.1 billion, 5
per cent higher than last year.
In the UAE, we continued to cement
our position as the leading operator in
the country despite further competitive
pressures. We have continued to be the
dominant force in mobiles, driven by our
competitive pricing, innovative service
offerings and the high quality of our
network. Continued improvements in
customer service have also engendered a
spirit of loyalty among our customers and
we will continue to focus on providing a
unique customer experience and superior
service in the future.
We also have strong growth in the data
and internet segments, and revenues will
continues to grow as we benefit from our
investment in infrastructure, including
the establishment of the worlds most
extensive Fiber-To-The-Home (FTTH)
network. By utilising best technological
and innovative solutions globally available,
we are connecting government, businesses
12
Annual Report 2013
and individuals to the services they

demand at exceptionally fast speeds.
Etisalat continued to deepen its relationship
with other international organisations that
will be important to the future of telecoms.
Our intention to innovate through global
partnerships was clearly demonstrated
last year when we joined the Machineto-Machine (M2M) World Alliance, a
coalition of eight major operators that are
working together to bring the latest M2M
technologies to global markets. By being
part of the alliance, Etisalat is positioning
itself to become a leader in the global
telecom industry.
Etisalat is now the enabler of many
innovative services most noticeably in
government. A clear example of this is
the e-government which we have seen
in the UAE for many years and which
was reinforced further by HH Sheikh
Mohammed bin Rashid Al Maktoum, Vice
President & Prime Minister of UAE, Ruler
of Dubai in his Mobile Government vision.
We are delighted with the progress being
made in the UAE and we are working with
many ministries on different turn-key
projects. Some of these are based on our
experiences in other markets especially
in the fields of Identity, Health, Education
and Finance. All this is testament to our
visionary government and the healthy
growth which has created potential far
beyond expectations.
Etisalat has proven that mobile finance
technologies can be secure and lifechanging across its footprint in places
such as Afghanistan, Tanzania and recently
in Sri Lanka, Egypt and Niger. Mobile
money technology is now at a very mature
level and extremely secure and offers
significant benefits for communities,
especially those with lower incomes.
was Etisalats involvement in a bicycle

tour across five European countries to
test the latest mobile technologies that
can be used to help manage and cure
diabetes. Diabetes, of course, takes a
huge toll on many families, especially
here in the UAE, and the tour became
a symbol for Etisalats efforts to help
combat the disease. We hope that the
technology tested during the tour will
make a difference to peoples lives. The
combination of innovation and giving
back is part of our efforts towards the
communities we serve.
There have also been many other positive
developments this year: higher revenues,
and successful initiatives. However, we
must not allow good news to abate our
efforts or distract us from the difficult
challenges facing the industry. Whether
our voyage is on calm or turbulent waters,
we must always focus on the goal of longterm success through innovation, strong
performance and progress.
We still have a lot of work to do to build
our capabilities, be more efficient and
launch services in areas such as M2M,
e-commerce, video and cloud services.
Having said that, Im extremely confident
that we will have more good news in the
coming years. This is because we invest in
people and empower our customers. I am
honoured to lead the Group in building
upon the success of previous years and into
the next stage for generations to come.
Ahmed Abdulkarim Julfar

Chef Exective Officer
Another notable innovation was when

we became one of the first companies in
the world to pass the initial stages of a
procedure to obtain our own top-level
domain names. The approval paves the way
to using an extension such as .etisalat. This
will help our work in continuing to build
our brand as one of the most innovative
companies in the region.
Turning to our work in the community, an
event that caught the eye of the world
Etisalat
13
Management Team
Ahmad Abdulkarim Julfar

Chief Executive Officer- Etisalat Group
Mr. Julfar was appointed as the CEO of the Etisalat Group in August 2011. Prior to this
appointment, he was the Chief Operating Officer of EG. Mr. Julfar has more than 25 years
experience in the telecommunication sector and has served in various management positions
including General Manager of eCompany, ComTrust and Etisalats Dubai region. In addition,
Mr. Julfar serves on the boards of Mobily, where he is the Chairman of the Risk Management
committee, Etisalat Misr and Etisalat Services Holding. Mr. Julfar holds Bachelors Degrees in
Civil Engineering and Computer Science from the USA.
Serkan Okandan
Chief Financial Officer, Etisalat Group
Mr. Okandan joined Etisalat in January 2012 as Chief Financial Officer of the Etisalat
Group. Prior to his appointment, he was the Group Chief Financial Officer of Turkcell.
Mr. Okandan started his professional career at PricewaterhouseCoopers in 1992, and
worked for DHL and Frito Lay as a Financial Controller before joining Turkcell. Mr.
Okandan is a board member and Chairman of the audit committee of Etisalat Nigeria,
PTCL, Ufone and a board member of Etisalat Services Holding. Mr. Okandan graduated
from Bosphorus University with a degree in Economics.
Essa Al Haddad
Chief Regional Officer /Africa, Etisalat Group
Essa Al Haddad was appointed as the Chief Regional Officer, Africa, of the Etisalat Group in
January 2013. Prior to this appointment, he was the Chief Commercial Officer of EG. In his 34
years of experience, Mr. Al Haddad has served in various senior leadership positions including
Executive Vice President of Engineering of Etisalat UAE, Chief Marketing Officer Etisalat
UAE and Chief Marketing Officer of EG. Mr. Al Haddad is Chairman of Zantel, Vice Chairman
of Etisalat Nigeria and board member of Atlantique Telecom, Mobily and Canar. He holds a
higher diploma in Telecom Engineering and an MBA from the UK.
Dr. Daniel Ritz, Ph.D

Chief Strategy Officer, Etisalat Group
Daniel Ritz was appointed as Chief Strategy Officer for EG in February 2012. Prior to
this appointment, he was the CSO at Swisscom Group where he held various positions
including Board member of each of the Groups Executive Board, Fastweb, Belgacom
and Swisscom IT Services. He also served as Chairman of Swisscoms Hospitality Services
and as CEO of Swisscom (Central & Eastern Europe). Prior to joining Swisscom, he was
a partner at BCG. Dr. Ritz also serves on the Board of Atlantique Telecom, Thuraya, PTCL
and Ufone. Dr. Ritz holds a Ph.D from the Hochschule St. Gallen in Switzerland.
14
Annual Report 2013
Saleh Al Abdooli
Chief Executive Officer, Etisalat UAE
Engineer Saleh Al Abdooli was appointed as Chief Executive Officer of Etisalat UAE
in April 2012. A strong and charismatic leader, Saleh rose to international fame after
his resounding success in Egypt as the CEO of Etisalat Misr. He built and launched
the first 3G operator in Egypt in 7 months. In less than five years, he achieved
27% of revenue share, 28% market share, 36% of EBITDA margin, and 99% 2G/3G
coverage. Al Abdooli holds Bachelors and Masters in Electrical Eng. and Telecom
from University of Colorado at Boulder, USA.
Khalid Al Kaf
Managing Director and Chief Executive Officer, Etihad Etisalat (Mobily)
Khalid Al Kaf was appointed as Chief Executive Officer and Managing Director of Etihad
Etisalat (Mobily) in July 2005. Prior to this appointment, Mr. Al Kaf worked for over 19
years with Etisalat in various capacities. He was the General Manager of Etisalats Network
Services division before being appointed as the start up project manager and later CEO
for Mobily. Mr. Al Kaf is the Chairman of the Board of Directors of Etisalat Sri Lanka and
is a board member of Mobily. Mr. Al Kaf holds a Bachelor of Science degree from George
Washington University, USA.
Saeed Al Hamli
Chief Executive Officer, Etisalat Misr
Mr. Al Hamli was appointed as Chief Executive Officer of Etisalat Misr in April 2012.
Prior to this role, he was the Chief Executive Officer of Etisalat Afghanistan since 2007.
Mr. Al Hamli has more than 20 years of experience at Etisalat and Thuraya where he was
the Chief Commercial Officer before moving to Afghanistan. Mr. Al Hamli also serves on
the board of Etisalat Misr. Mr. Saeed holds a Bachelors of Science degree in Electrical
Engineering from USA and Executive Masters of Business Administration degree from
the American University of Sharjah.
Jamal Aljarwan
Chief Regional Officer/ Asia, Etisalat Group
Jamal Al Jarwan was appointed as the Chief Regional Officer of the Asian cluster of
EG in October 2011. Prior to this position, he was the Chief International Investments
Officer of EG. Mr. Al Jarwan started his career at Etisalat in 1988 and held various
positions including Chief Commercial Officer at Thuraya. Mr. Al Jarwan is a member
of the Board of Etisalat Afghanistan, Etisalat Sri Lanka, PTCL and Ufone. He holds a
Bachelors degree in Business from Dayton University in the United States and an MBA
in International Management Development from Lausanne University, Switzerland.
Etisalat
15
Management Team
Abdulaziz Al Sawaleh
Chief Human Resources Officer, Etisalat Group
Mr. Al Sawaleh is the Chief Human Resources Officer (CHRO) of the Etisalat Group. Prior
to this position, he was the CHRO of Etisalat UAE. Mr. Al Sawaleh has more than 25 years
experience in various leadership positions. He is responsible for leading the global Human
Capital strategies including the areas of talent development, organization effectiveness,
compensation & benefits and Performance Management. He is a board member of
Atlantique Telecom and Etisalat Services Holding. Mr. Al Sawaleh holds an MBA degree in
Global Leadership Management from UAE University and a BBA degree from the USA.
Nasser Bin Obood

Chief Government Relations and Corporate Communications Officer, Etisalat Group
Nasser Bin Obood was appointed as Group Chief Government Relations and Corporate
Communications Officer at EG in April 2012. Prior to this, he was Acting CEO for
Etisalat UAE. Mr. Bin Obood joined Etisalat in 1986 and held various senior positions
including General Manager of Al Ain region, Deputy CEO and Chief Corporate Affairs
Officer for Etisalat UAE and Chief Corporate Affairs Officer of the Etisalat Group. Mr.
Bin Obood serves on the boards of Thuraya and Atlantique Telecom. Mr. Bin Obood
holds a Bachelors degree in Science from the UAE University, Al Ain.
Rainer Rathgeber
Chief Commercial Officer, Etisalat Group
Rainer Rathgeber was appointed as Chief Commercial Officer of EG in January 2013. Prior
to joining Etisalat, he was Senior Vice President of Marketing in Europe of the OTE Group.
Mr. Rathgeber joined Deutsche Telekom in 2002 as Head of Strategy for T-Mobile Germany,
and Executive Vice President of Sales and Service Strategy for T-Mobile International. He
then went on to serve in various positions including Executive Vice President of Market
Management for T-Mobile International, CEO of T-Mobile Croatia and Member of the
Executive Management Committee of T-Mobile International. Mr. Rathgeber holds a DiplomKaufmann Degree in Economics.
Khalifa Al Shamsi
Chief Digital Services Officer, Etisalat Group
Khalifa Al Shamsi was appointed as Chief Digital Services Officer of the EG in 2012.
Prior to this role, Mr. Al Shamsi held the position of Senior Vice President of Technology
Strategy of the Etisalat Group. Since joining Etisalat in 1993, Mr. Al Shamsi has held
various key senior positions including Vice President and Senior Vice President of
Marketing of Etisalat UAE. Mr. Al Shamsi serves on the Boards of Etisalat Afghanistan
and E-vision. Mr. Al Shamsi has a Bachelors degree in Electrical Engineering from the
University of Kentucky, USA
Obaid Bokisha
Chief Procurement Officer, Etisalat Group
Obaid Bokisha was appointed as Chief Procurement Officer of the EG in June 2012. Since
joining Etisalat, he was assigned various responsibilities contributed to the network
implementation of all existing systems covering GSM, UMTS, LTE and WiFi networks.
Positions held include Vice President Mobile Networks Planning & Intl Support of Etisalat
UAE and Senior Vice President Mobile Networks Optimization EG.Mr. Bokisha serves
on the board of Etisalat Misr, Zantel and Etisalat Nigeria. Mr. Bokisha has a degree in
Communications Engineering from the Etisalat College of Engineering.
Hatem Bamatraf
Chief Technology Officer at Etisalat Group
Mr. Hatem Bamatraf was appointed Chief Technology Officer at Etisalat Group in
September 2013. Prior to this position he was the Executive Vice President of Enterprise
Business at Du. Hatem began his professional career in 1995 at Etisalat and was seconded
to Mobily in 2004 as Director of Mobile Network Development in the Central Region, KSA.
He graduated from the Etisalat College of Engineering and holds a bachelors degree in
Engineering. He has been recognised by Global Telecom Business as one of the 40 under
40 telecom leaders in the world.
Javier Garcia
Chief Internal Auditor, Etisalat Group
Javier Garcia joined Etisalat in December 2012 as Chief Internal Auditor of the EG. Mr.
Garcia was the head of Internal Audit at Telefonica Group before joining Etisalat. He
held various positions with Telefonica including Business Process Audit Director and
Vice President of Internal Audit (Chile) before becoming the Group Head of Internal
Audit. Mr. Garcia holds a Bachelors in Economics and a Masters in Financial Markets
from the Autonomous University of Madrid
John Wilkes
Chief Internal Control Officer, Etisalat Group
John Wilkes was appointed as the Chief Internal Control Officer for EG in January 2013.
Prior to this, Mr. Wilkes was the General Manager of Risk & Supply Chain of the Vodafone
Hutchison Company. He has more than 24 years of experience in companies such as KPMG
Air in New Zealand where he was the Group Internal Auditor and Stockland in Australia
where he held the position of Chief Risk Officer. Mr. Wilkes is a qualified chartered
accountant.
Dr. Kamal Shehadi, PhD

Chief Legal & Regulatory Officer, Etisalat Group
Kamal Shehadi was appointed as Chief Legal & Regulatory Officer of EG in November 2012.
He Joined Etisalat in 2010 as Head of the Regulatory Department. Prior to that, Dr. Shehadi
was the Chairman and CEO of TRA, Lebanon. He has more than 17 years of experience in
consulting and advisory services for telecom regulatory authorities and telecom service
providers. Dr. Shehadi serves on the board of Atlantique Telecom. Dr. Shehadi has a B.A.
in Economics from Harvard University and a PhD in International Political Economy from
Columbia University, USA.
16
Annual Report 2013
Etisalat
17
Etisalat Group Strategy
Vision, Mission
and Strategic Pillars
Vision
Mission
The services
provided by the
communications
industry have
never been more
in demand by both
consumers and
businesses alike.
To be the leading and most admired

emerging markets telecom group
Provide best in class total customer

experience for retail and business
Deliver attractive returns to
shareholders while investing in the
companys long term future
Support economic development and
job creation through ICT & socially
responsible behavior
Strategic Pillars
One
Company
People
& culture
Operational
Excellence
Portfolio
Customer
Experience
Service
offering
In todays rapidly evolving digital society,

the role of the communications industry
has proven to be a key enabler for global
socioeconomic growth. From a strategic
perspective, the opportunities arising in the
industry are coupled with challenges. Major
telecommunications players are undergoing
significant transformation and change,
while boundaries across the value chain
are becoming increasingly blurred. More
than ever, it is imperative to have a clear
understanding of the forces shaping the
industry and the optimal position for each
player to gain its competitive advantage. The
worldwide telecommunications industry
with estimated revenues of approximately
USD1.7 trillion at the end of 2013 will
continue to represent a sizeable and attractive
industry, particularly in emerging markets.
In Etisalats footprint, we envisage significant
growth in the telecommunications industry.
This growth will be driven primarily by
broadband, voice in some markets, and new
revenue streams across its footprint. Etisalats
corporate strategy, outlined last year and
reinforced this year, continues to enhance
the focus of the organisation across its
capabilities in the consumer, business and
wholesale segments. The strategy continues
to be based on six pillars, which are designed
to deliver the objectives of the organisation:
Service Offering, Customer Experience,
Operational Excellence, Portfolio, One
Company and People & Culture. The progress
achieved on these fronts during 2013 is
highly encouraging and further upsides are
expected in the coming years.
Service Offering
Etisalats commitment to enhance its
service offering through differentiated
and innovative services was evident in the
numerous initiatives deployed in 2013.
Enhancement of customer segmentation
18
Annual Report 2013
and the introduction of new services allowed

the organisation to provide incremental
value to its customers. For example, Etisalat
continues to leverage its customer-value
management capabilities across its footprint
to enhance customer retention. In the new
digital space, Etisalats Flous M-Commerce
service was launched in seven new countries
in 2013, reaching a total of nine m-commerce
enabled operations, with a total registered
base of 10.5 million at the end of 2013. In the
enterprise segment, Etisalat also witnessed
an increase in both market share and value
share by deploying solutions that are meeting
customers requirements. The increased loyalty
and uptake of services are strong indicators of
successful strategy implementation.
Customer Experience
per cent stake in Maroc Telecom. The closing

of the acquisition is subject to a number
of conditions including , among others, the
execution of a shareholders agreement
with the Kingdom of Morocco regarding
Maroc Telecom, securing competition and
regulatory approvals in the Kingdom of
Morocco and other relevant jurisdictions. The
potential acquisition will be EPS accretive
and will significantly enhance Etisalats
positioning in West Africa. From a capital
structure optimisation perspective,
Etisalat also continues to monitor its
operational requirements to ensure that
an optimal structure is in place for its
operating companies
One Company
Etisalat works continuously on providing

customer insight-based and focused
propositions, as well as on creating a positive
customer experience across all touch points.
In 2013, Etisalat initiated several programmes
aimed at improving end-to-end customer
experience, with particular emphasis on
front-facing elements. An example of these
efforts is the increased deployment of
Etisalats own points of sale in the form of
flagship stores across its footprint.
With a strong footprint across 15 markets,

Etisalat has the scale to deliver exceptional
returns. The company is reinforcing a strategy
which leverages this scale by enabling a
common set of brand values, enhancing
integrated systems and processes, and
ensuring robust and consistent governance,
as well as maximised economies of
scale across the Group. As an example,
Etisalat deployed group-wide finance and
procurement systems in order to enhance the
efficiency of the organisation.
Operational Excellence
People & Culture
Despite the fact that Etisalat continues

to achieve one of the highest margins in
the telecom industry, the organisation is
committed to continuously improving its
operational excellence. In 2013, numerous
strategic initiatives across procurement,
network optimisation and capital expenditure
became key drivers of Etisalats healthy
margins. Etisalat will continue to implement
and pursue further improvements by
leveraging the international scale of the group
over the coming years.
Etisalats people and corporate culture are

at the heart of its strategy. Having the right
talent and processes in place will continue
to enable the Etisalat Group to deliver on its
strategic pillars successfully. In 2013 alone,
several strategic programmes were deployed
to ensure the organisation attracts, develops
and retains the right talent. Initiatives like
the High Potential Programme and Top 100
Talent are examples of the organisations
actions to ensure that appropriate
resources are in place for any potential
business requirement (e.g. succession
planning, management reinforcement
etc.). In addition, the Group continues to
identify ways to streamline its processes
to ensure that efficiency is improved.
Portfolio
Based on the established investment
guidelines of Etisalats corporate strategy,
which focuses on the companys operations
in the Middle East, Africa and Asia, recent
M&A activities have been highly targeted
to enhance existing positioning. Activities
in 2013 included acquisitions of 3G
licences (e.g. Moov Benin) and initiatives to
strengthen the companys position through
in-market consolidation in some of our
core markets. In addition, on 4th November
2013, Etisalat announced that it had signed
a share purchase agreement with Vivendi
in relation to the acquisition of Vivendis 53
As Etisalat grows over the next five years,

it aims to deliver exceptional customer
service and an innovative and dynamic
range of services across an optimised
and efficient portfolio. With these
key principles in place, Etisalat will be
well positioned to achieve its vision of
becoming the leading and most admired
emerging markets telecom group.
Etisalat
19
Awards
Corporate
2011
Arab Achievement Awards
Leader in Telecoms
International Business Awards
Most Innovative Company
African Investor of the Year
Africa Business Awards
Marketing and Customer Care

2012
Corporate Social Responsibility
Programme of the Year
2013
CommsMEA
Best Overall Operator of the Year
2011
Best Customer Care
Arabia CSR Awards

First Runner-Up in NGO-partnership

Honourable Mention - Green
Programme
Forbes Middle East

Most powerful company in the UAE

Honourable Mention - CSR
Programme
Asia Brand Employer Awards

Training Excellence
2012
2013
GSMA Global Mobile Awards

Best Mobile Product and Service
for Women in Emerging Markets
Mobile Money Global Awards

Best Bank Led Mobile Money
Programme (Egypt)

Best New Product or Service of the
Year Health
Mobile Money Global

Best Mobile Money Deployment in
the Middle East
Asian Brand Employer Awards

Asias Most Preferred Brand
SAMENA Awards
Technical Leadership
Management
Innovation and Engineering

2011
Global Telecom Business Innovation
Awards
Video Services
TMT Finance Middle East
Best Broadband Provider
COMMS MEA
Best Fixed Line Provider
2012
Best Mobile Health Innovation
Best Mobile Health Innovation
Most Innovative Company in the
Middle East and Africa
2013
GSMA Mobile World Congress
Best NFC/Mobile Money Product
or Service
2011
Best Chairman
2012
Best Executive of the Year in
Telecommunications
2013
Arabian Business
CEO of the Year
Financial Times
Special Commendation Technology in Sustainable
Finance
Telecom World ME
Best Middle Eastern Wholesale
Carrier
20
Annual Report 2013
Etisalat
21
Substantial Growth with

Aspirations to Excel
148
2013
139
2012
Aggregate Subscribers (m)
Etisalat Group aggregate subscriber number grew by 7% on an annual basis to 148

million in 2013 and a 3% growth by December 2013. The net addition of 9 million
subscribers in the year was mainly a factor of good subscriber growth in the UAE, Saudi
Arabia, Egypt, Nigeria, Benin and Togo markets.
In the UAE, the active subscriber base grew to 10.4 million subscribers in 2013
representing YoY growth of 16%. Attractive promotional campaigns and new products
and services led to the mobile subscriber base growing at 19% to 8.4 million subscribers
from 7.0 million. Fixed line subscribers declined to 1.0 million representing a 5%
decrease from the previous period. However, this is mainly attributed to the transition of
customers to the eLife segment (i.e. double play and triple play). The eLife segment had a
growth rate of 30% for the year to 0.7 million customers.
Africa cluster aggregate subscriber base, increased to 28.9 million at the end of
December 2013 representing YoY increase of 7%. Asia cluster aggregate subscriber base
reached 36.3 million at the end of December 2013, declining by 1%.
EBITDA
18.9
Subscribers
Group Consolidated EBITDA grew to AED 18.9 billion representing a YoY growth
of 12%. EBITDA growth was mainly due to increase in revenue and flow through
to EBITDA. EBITDA margin declined by 3 points to 49% in 2013. This decline is
mainly due to higher interconnect & termination costs, higher proportion of
low margin handset sales, higher staff costs, network and marketing expenses as
well as the diluting impact of consolidation of Pakistan operations.
16.9
2012
In the UAE, EBITDA in 2013 increased YoY by 4% to AED 14.0 billion leading
to an EBITDA margin of 57% in comparison to 59% in the previous year. This
decline is attributed to a higher proportion of low margin devices costs and
higher interconnection costs. EBITDA of international consolidated operations
in 2013 increased YoY by 41% to AED 4.1 billion resulting in 17% contribution
to consolidated EBITDA. In Egypt EBITDA for 2013 declined by 19% to AED
1.6 billion due to higher network costs supporting network expansion,
higher cost of sales and marketing expenses, and a one-off provision for the
interconnection dispute with another mobile operator. This resulted in EBITDA
margin declining by 5 points to 34%. Adjusting for the impact of the oneoff, EBITDA margin would have been 36%. In Africa cluster, EBITDA for 2013
declined YoY by 25% to AED 0.5 billion and EBITDA margin fell by 6 points to
19% mainly due to one-off provision in Atlantique operations. Adjusting for
these provision, EBITDA Margin in 2013 would have been 22%. In Asia cluster,
EBITDA in 2013 increased to AED 1.9 billion and EBITDA margin increased to
31% as a result of the consolidation of operations in Pakistan.
2013
EBITDA (AED b)
Revenues
Etisalat Groups full year consolidated revenue increased YoY by 18% to AED 38.9 billion
driven by strong performance of domestic operations and the consolidation of Pakistan
operations. In the UAE, revenue grew by 9% to AED 24.8 billion as a result of subscriber
growth, increase in demand for data services and higher handsets sales.
32.9
38.9
2012
2013
Revenue (AED b)
22
Annual Report 2013
6.7
Revenue from international operations increased by 47% to AED 13.8 billion,

representing 36% of consolidated revenues. In Egypt, revenues for 2013 of AED 4.7
billion, were down 7% from prior year mainly impacted by currency devaluation.
However, revenue in local currency evidenced single digit growth due to an increase in
the post-paid customer base, growth in the data segment and handset sales.
Africa Cluster consolidated revenue grew by less than 1% to AED 2.8 billion. Performance
was mainly impacted by competitive pressure in Ivory Coast and currency devaluation
in Sudan. In 2013 the Asia Cluster benefited from the inclusion of full year results of
Pakistan operations with revenue growth for the year increasing three-fold to AED 6.3
billion. Excluding Pakistan operations, full year revenue would have declined by 4%.
Net Profit and EPS
7.1
90
85
2012
2013
Consolidated net profit after Federal Royalty increased YoY by 5% to AED 7.1
billion in 2013. Despite higher depreciation and amortization charges, taxes
and lower finance income, net profit improved due to higher share of results
of associates, and lower impairment charges and other losses, and lower
Federal Royalty.
Earnings per share (EPS) increased to 0.90 fils in 2013. On 4th of March 2014
the Board of Directors has resolved to propose a final dividend for the second
half of 2013 at the rate of 35 fils per share, bringing the full year dividend
to 70 fils per share. This proposal is subject to shareholder approval at the
Annual General Meeting scheduled for the 26th March 2014.
Net Prot (AED b) EPS(Fils)
Etisalat
23
CAPEX
4.2
6.3
2012
2013
CAPEX (AED b)
Consolidated capital expenditures increased YoY by 52% to AED 6.3 billion resulting in
capital intensity ratio of 16% in 2013. Capital expenditure during the year focused on
network expansion, network capacity and universal mobile license acquisition in Benin. In
the UAE, capital expenditures in 2013 increased by 12% to AED 2.0 billion while capital
intensity ratio remained stable at 8%. Capital expenditure in the UAE focused on ensuring
network leadership by enhancing network quality and coverage. Capital expenditures
in consolidated international operations in 2013 increased by 94% to AED 4.3 and
represented 67% of total capital expenditures. In Egypt, capital expenditures increased
by 5% to AED 1.2 billion as compared to last year resulting in a capital intensity ratio of
26%. In Africa cluster, capital expenditures in 2013 increased significantly by 156% to
AED 1.2 billion due to universal mobile license acquisition in Benin and acceleration of
network deployment in Benin and Togo. This resulted in a capital intensity ratio of 44%.
Adjusting for the licence acquisition in Benin; capital intensity ratio would have been
31%. In Asia cluster, capital expenditure increased more than two-fold to AED 1.8 billion
due to the consolidation of operations in Pakistan.
Profit and Loss Summary

(AED m)
Revenue
EBITDA
EBITDA Margin
Federal Royalty
Net Profit
Net Profit Margin
FY12
32,946
16,855
51%
6,451
6,742
20%
FY13
38,853
18,901
49%
6,115
7,078
18%
YoY
+18%
+12%
-3pp
-5%
+5%
-2pp
Balance Sheet Summary

(AED m)
Cash & Cash Equivalents
Total Assets
Total Debt
Net Cash
Total Equity
24
Annual Report 2013
FY12
13,934
84,606
5,806
8,128
49,913
FY13
15,450
85,716
5,872
9,579
49,593
Cash flow Summary

(AED m)
Operating
Investing
Financing
Net change in cash
Effect of FX rate changes
Ending cash balance
FY12
10,486
(225)
(6,327)
3,934
28
13,934
FY13
12,974
(4,854)
(6,585)
1,535
(19)
15,450
Reconciliation of Non-IFRS Financial Measurements

We believe that EBITDA is a measurement commonly used by companies, analysts
and investors in the telecommunications industry, which enhances the understanding
of our cash generation ability and liquidity position, and assists in the evaluation
of our capacity to meet our financial obligations. We also use EBITDA as an internal
measurement tool and, accordingly, we believe that the presentation of EBITDA
provides useful and relevant information to analysts and investors.
Our EBITDA definition includes revenue, staff costs, direct cost of sales, regulatory
expenses, operating lease rentals, repairs and maintenance, general financial expenses,
and other operating expenses.
EBITDA is not a measure of financial performance under IFRS, and should not be
construed as a substitute for net earnings (loss) as a measure of performance or
cash flow from operations as a measure of liquidity. The following table provides a
reconciliation of EBITDA, which is a non-IFRS financial measurement, to Operating
Profit before Federal Royalty, which we believe is the most directly comparable
financial measurement calculated and presented in accordance with IFRS.
(AED m)
EBITDA
Depreciation & Amortization
Exchange gain/(loss)
Share of results of associates and Joint ventures
Impairment losses
Operating Profit Before Federal Royalty
FY12
16,855
(3,385)
(58)
1,263
(2,825)
11,851
FY13
18,901
(4,607)
(141)
1,754
(1,374)
14,533
Etisalat
25
Our International
Presence
Middle East
Operator
Country
Licnese Type:
Etisalat Ownership
Population: (million)
Penetration
Number of operators
Network Coverage, population
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Asia
Etisalat
United Arab Emirates
Mobile, Fixed and Internet
100%
9
Mobile 191%
Fixed: 25%
2
100%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Etihad Etisalat (Mobily)

Saudi Arabia
Mobile & Interent
28%
29
180%
Mobile 3
99%
Etisalat Misr
Egypt
Mobile & Interent
66%
83
118%
Mobile 3
99%
Operator
Country
Licnese Type:
Thuraya
Etisalat Ownership
Penetration
Number of operators
Network Coverage, geographical
28%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Atlantique Telecom, Moov

West Africa
Mobile
100%
62
65%
Mobile 2-6 per country
59%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Etisalat
Nigeria
Mobile
40%
174
72%
Mobile 5
82%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Canar
Sudan
Fixed
89%
34
1%
Fixed 2
31%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Zantel
Tanzania
Mobile and Fixed
65%
50
54%
Mobile 6, Fixed 2
45%
Operator
Country
Licnese Type:
Etisalat Ownership
Penetration
Number of operators
Etisalat
Afghanistan
Mobile
100%
31
72%
Mobile 4
PTCL/Ufone
Pakistan
Mobile, Fixed and Internet
23%
184
Mobile: 73% Fixed: 3%
Etisalat
Sri Lanka
Mobile
100%
21
113%
Mobile 5, Fixed 11
Mobile 5
78%
77%
75%
Satellite
Telecommunication
Satellite 4
140 countries
Africa
26
Annual Report 2013
Etisalat
27
Inspired to transform
communities
Management Review
Middle East
Etisalat UAE
Etisalat maintained Innovation, community and customer
focus at the core of its brand values, consistently creating
value for its loyal and future customers
In 2013, Etisalat UAE responded to

the changes in customer behavior,
technology and the countrys competitive
telecommunications landscape, following
a strategy that was in line with Etisalat
Groups strategic pillars of innovation,
customer centricity and global family.
With the launch of new services, solutions
and products, the telecom majors UAE
subscriber base and the number of mobile
subscribers grew to 10.2million and
8.3m respectively. Furthermore, Etisalat
currently has the widest coverage of its
dual network comprising of both 3G and
4G technologies in the UAE, with 99.8 per
cent coverage across the country in 3G
and over 80 per cent penetration across
populated areas in 4G networks.
The company successfully upgraded its
network of 3G with speeds touching
84 mbps from the previous 42 mbps
providing the best quality voice and data
transmission in UAE. Etisalat UAE also
completed the successful testing of Voice
over LTE (VoLTE) and eSRVCC (enhanced
Single Radio Call Continuity) providing
more services to its subscribers over 4G LTE
network, the first in the Middle East and
North Africa (MENA) region.
Etisalat offers the widest coverage of
its network comprising of 3G and 4G
technologies in the country. Etisalat has
upgraded its telecom network in 2013
to provide the best indoor coverage in
the country by increasing the number of
30
Annual Report 2013
indoor base stations to 6000 to provide

best indoor coverage with high quality
service and download speeds, according
to the recent report from the TRA. Etisalat
is working to increase the number of base
stations over 7500 by the end of the year
Etisalat UAE recently launched the eLife

multiscreen service becoming the first
provider to allow customers to watch TV
on tablets, PCs, laptops and Smartphones
from anywhere using WiFi or Etisalat UAEs
high speed 3G and 4G networks.
Earlier in the year, Etisalat UAE

successfully completed the rollout of
its fibre-to-the-home (FTTH) network
across 1.3m homes in the country. This
achievement contributed to UAE being
ranked as a global leader in connecting
homes in the country on the FTTH
network. The advanced infrastructure
allows the utilisation of the most
advanced technology applications to the
UAE market.
Realising the strategic implications of

the cloud, Etisalat UAE launched its first
cloud service for small-and medium-sized
businesses (SMBs) and enterprises. Cloud
Compute (Infrastructure as a Service) is a
pay as you go model, reducing IT costs up
to 60 per cent and time to market faster
by up to 90 per cent. Hosted at Etisalat
UAEs Jebel Ali data centre, it offers easy
access to infrastructure, ability to scale
up or down rapidly based on demand and
faster time to market than conventional
hosting services.
Its high-speed broadband internet enables

users to enjoy multiple high bandwidth
applications such as IPTV and online
gaming in an integrated single interface
for landline, internet and television-based
services, providing a truly converged
digital home experience to its customers.
While Etisalat UAE already holds the
record for the highest internet speed of
300 Mbps in UAE, it decided to go one
step further with the announcement that
it is introducing a speed of 500Mbps for
e-Life subscribers. eLife is based on Next
Generation Fibre Optic Technology which
allows customers to combine high-quality
voice, supersonic Internet, and highdefinition TV into one experience.
Etisalat UAE brought smarter services

into every aspect of its 2013 offering,
providing a range of end-to-end managed
systems that offer complete solutions to
a range of industry verticals. Government
was one of the key focus areas for Etisalat
UAE in 2013, and in support of the UAEs
goal of creating a smarter environment by
promoting digitisation initiatives, Etisalat
UAE set about permanently improving
how governments serve and interact with
the needs and expectations of the public.
In cooperation with the Roads and
Transport Authority (RTA), Etisalat UAE
launched the Smart Nol service, which
gives Dubai commuters smoother travel
via NFC-enabled mobile phones. This

service is in line with Etisalat UAEs longterm strategy to support mGovernment
and initiatives raising the profile of the
country, as well as impacting the lives of
the people of UAE.
The company also pioneered several
advanced green technologies such as
Emirates Energy Star (EES) which have
directly impacting the UAEs carbon
footprint by reducing C02 emissions.
From December 2011 until May 2013, the
programme prohibited the emission of
more than 11,860 tons of carbon dioxide,
which is equivalent to planting as many
as 2,546 trees. Etisalat UAE clients that
have benefitted from the programme
include Sheikh Khalifa Medical City, Dubai
Electricity and Water Authority (DEWA) and
Abu Dhabi Commercial Bank (ADCB). Other
environmentally friendly practices included
substituting traditional paper bills with
electronic bills via its eBilling initiative.
In addition to billing changes, a new
customer technical support centre was
established with highly skilled front and
back office teams to support field staff.
This unit aim is to achieve high levels
of customer satisfaction during the
cycle of service provisioning and fault
management. Employing almost 2000
staff across the country, Etisalat UAE
boasts the biggest call centre network in
the UAE.
The telecom provider assists more than
150,000 customers every day at the
companys three main centres in Ajman,
Abu Dhabi and Sharjah. Staff speak a
wide variety of languages including
Arabic, English and Malayalam and are
all trained in soft skills to enable them to
communicate effectively with customers.
Staying true to its commitment towards
meeting the changing requirements of
its growing customer base, Etisalat UAE
revamped its packages and introduced
new services offering flexibility and value
for money. Among the many offerings
introduced were the per-second billing
service for pre- and post-paid plans, and
attractive bundles and packages offering

customised solutions and further savings
for customers.
Etisalat UAE also came up with customised
plans to cater to the increase in data
consumption needs of customers a direct
result of UAE being ranked as the country
with the highest smartphone penetration
in the world. Responding to the increased
demand for data among UAE consumers,
the telecom major streamlined its data
package offerings across both prepaid and
post-paid services to enhance and simplify
the current rates.
International calling prices were also
slashed and Etisalat UAE removed
international borders for its Wasel pre-paid
customers through its call international,
pay local campaign.
In addition, the company maintained
exclusivity in product offerings by
introducing the latest smart devices -Samsung Galaxy S4 Zoom, iPhone 5s/5c,
BlackBerry Z30 and Nokia Lumia 625 and
Huaweis 4G LTE mobile broadband devices
to the UAE market at competitive prices.
Given the UAEs status as an international
tourism and business hub, the telecoms
major introduced competitive roaming
rates in 190 countries, thus strengthening
its leadership in this key area. With an
extensive network of 680 international
roaming partners, Etisalat UAE allows
prepaid and post-paid customers to use
their phones abroad without the need for
a subscription or deposit. Etisalat has also
marked a regional first with the launch of
its new business roaming data packages
aimed at frequent business travellers from
the UAE, the country with the highest
smartphone penetration in the world
channel, Duroosi, that offers videobased educational tutorials for students.

Launched in partnership with the UAE
Ministry of Education, Etisalat UAE
developed 600 tutorial videos offering selflearning options complete with visual aids
and ease of access.
Among the other smart solutions
introduced in 2013 was Smart Education,
which is the cloud web portal service
for K-12 schools designed to provide
comprehensive features and functionalities
required for school operations as part of
Etisalat UAE managed and cloud service
portfolio.
In recognition of its outstanding efforts
and achievements, Etisalat UAE won a
number of awards in 2013 such as the Best
Middle East Product and Service provider
at the Capacity Global Carrier Awards 2013.
Other accolades included being named
Best Wholesale Service Provider at the
Telecoms Review Summit, Overall Operator
of the year at Comms MEA Awards and
winning the ICT Development Customer
Care Excellence Award at the Middle
East Government and Business Customer
Care Excellence Awards for the second
consecutive year.
Etisalat UAEs corporate social responsibility

activity continued to grow and
develop, meanwhile, and the companys
commitment towards supporting the
community was highlighted through
projects such as the YouTube/Google
Etisalat
31
Management Review
Middle East
Mobily
Middle East
Etisalat Egypt
Mobily has gained popularity and strength in the region

since its inception and has further built on its reputation
this year for strong technical capabilities and innovative
approach.
Innovative and value-driven communications solutions

that are geared towards the current and future needs of its
consumers have continued to be the mark of Etisalat Misr
in 2013.
With a clear focus on the consumer and

business market segments, 2013 saw
the realisation of several new ideas and
concepts in the regions telecom sector
with Mobilys launch of new products and
services. The consumer segment benefited
from services like mView a video on
demand application that works across
device platforms and Kibot a robot for
kids that serves as an educational tool.
The Arabic Letters App enhanced customer
learning experiences by providing a mobile
platform that teaches the Arabic alphabet
in an intriguing manner, using animal
names and their corresponding sounds to
recognise them.
Egypt has continually shown great

potential for growth and expansion in its
mobile market. Etisalat Misr introduced
various new products and services in the
countrys telecom sector over the years
and 2013 has seen more innovative and
customer tailored services.
Keeping in line with the companys focus

on customers needs, Mobily introduced
the Mushaf App, which proved to be
invaluable for customers wishing to
read and memorise the Holy Quran.
Additionally, while integrating GPS
capabilities into a mobile application,
the Hajj App was launched to provide
customers with a better reality guide
when on pilgrimage. The application
gave directions to specific destinations
by detecting current locations using the
phones camera.
Building on this innovative approach to
consumer needs, Mobily also launched
iBill an interactive bill with the option
to view various usage and summary
graphs, and the Easy Charge App a
32
Annual Report 2013
unique Optical Character Recognition

(OCR) technology that allows users to
charge their prepaid cards using their
phones camera.
While continuing to maintain its
reputation for innovative and customer
centric solutions, Mobily introduced the
Earn and Burn loyalty points programme,
becoming the first in Saudi Arabia to
launch a system that works across retail
segments. Other ingenious ways it reached
its consumers this year were through
the Nesma3k App that is dedicated to
those with impaired hearing (by providing
them with an application that contains
information useful to various types of
emergencies), and through its M-Health
Portfolio, which integrates a users health
records and serves as an on-the-go
wellness device.
Leveraging on its collaborative
partnerships in 2013, Mobily served its
business segment by introducing public
and hybrid cloud services that employed
a multi-tiered cloud based infrastructure
and state of the art technology. As a
result of its collaboration with IBM,
The Kingdom of Saudi Arabias business
sector also benefited from Mobilys
world-class Managed Security Services
(MSS). The portfolio included a range of
integrated management services that
detect and protect businesses from virtual
security threats. Further building on
this partnership with IBM, the Business

Continuity and Resiliency Services was
also launched to provide Virtual Server
Recovery and Smart Cloud Managed Back
Up services.
In continuing to create value for the
business segment, Mobily launched a
Managed SAP Service that has proven to
be a crucial step in raising a companys
operational efficiency and reducing its
IT infrastructure costs. Mobilys unique
Cloud Advisory Service has also benefited
its business clients by helping them
create comprehensive resource utilisation
reports as a value-added service, giving
them the opportunity to transform
their IT infrastructure into a Mobily
Enterprise Cloud Service. Another key
collaboration in 2013 with the market
leading Advanced Electronics Company
resulted in the launch of the turnkey
Fleet Management Service.
Finally, in 2013, Mobily introduced a new
recruitment scheme that gave customer
service team members the flexibility to
work from home. The programme aims
to create opportunities for women, who
could start as part-time agents and then
continue to become full-time employees.
In recognising the countrys developing

mobile usage trends, Etisalat launched a
number of value added services during the
year including Mokalma 3al Nota that
allowed pre-paid users to continue making
local calls for up to three minutes even
after their credit had been fully utilised.
Running out of airtime credit no longer
meant being out of touch. Its Sallefni 3al
Nota initiative further allowed consumers
to borrow credit from the company that
could be used for any of its other services,
including internet packages, Blackberry
bundles and SMSs.
In order to maintain its leadership in the
mobile data segment, Etisalat Misr was
the first in the market to launch new data
schemes, covering the broader spectrum of
connectivity, be it for social media usage
or daily add-on services, even offering
overdraft facilities on data packages. Its
Mongez plan offers customers a number
of options for Internet usage, allowing
them to choose the best speeds, with
the widest coverage while employing
the latest technology. The company also

launched its Max yearly bundle revamp
aimed at encouraging customers to
purchase Etisalats G-tide and Telefunken
tablets at competitive prices and data
connectivity tariffs.
During the year Etisalat Misr continued
to provide value-driven postpaid schemes
and introduced the countrys first tariff
plan that could be personalised to suit
individuals. My Line allowed consumers
to customise and create a tariff plan that
suits their usage and lifestyle. The scheme
included four of its main services: My
Calls, My Internet Line, My Smartphone
and My Extras.
customers to monitor and secure their

family and assets by remotely viewing the
IP cameras anytime and on any mobile
device or PC.
Etisalat Misr continues to encourage
creativity and support innovation in the
countrys community of mobile developers
including universities, startups and
professionals through its Yalla Nsyatar
Mobile Apps Competition. The open
platform submission gathered over 300
ideas from across the nations brightest
tech savvy minds, awarding the top three
mobile apps with cash prizes and cobranding them with Etisalat Misr.
Additionally, 2013 was a successful year

for the implementation of Customer Value
Management Techniques (CVM) in Etisalat
Misr through a new CVM platform that
utilised USSDs for various customer offers.
Simultaneous targeted offerings have
tripled by combining different offers, be
it related to recharge, usage development
or mobile Internet, based on in-depth
understanding of the behavior and needs
of customers.
Continuing to gain insight on consumer
needs and deliver value-driven solutions,
the company developed the Etisalat eCam.
The novel video surveillance service allows
Etisalat
33
Management Review
Middle East
Thuraya
Following the previous years success streak of innovative
device launches, Thuraya continues to conceptualise and
deliver quality at an affordable price.
During 2013 Thuraya unveiled a new
Innovation Division that will be focused
on spearheading strategic initiatives for
the development and implementation
of innovation in products, services and
business models. This organisational
enhancement comes at the back of the
successful launch of the companys
SatSleeve for the iPhone and was
driven by Thurayas ambitions to further
pioneer state-of-the-art solutions in the
satellite industry.
Thuraya also secured a long-term financing
facility through Dubai Islamic Bank (DIB) for
the upgrade of its network infrastructure
and to support further development and
expansion of its product portfolio, while
enabling business expansion.
The SatSleeve is a versatile and userfriendly device that brings satellite
connectivity to the Apple iPhone. A
significant breakthrough in the mobile
satellite industry, Thuraya SatSleeve is
the worlds first product to offer easy
and affordable access to mobile satellite
communications, which is delivered over
Thurayas extensive satellite network.
Only slightly larger than the iPhone itself,
the compact adaptor provides users with
the ability to turn their iPhone into a
satellite phone that provides reliable
connectivity beyond the coverage of
traditional terrestrial networks. The device
is available in both voice only and data
models. Thuraya won the Innovation
Award at the Lloyds List Middle East and
Indian Subcontinent 2013 Awards for the
SatSleeve product.
In March 2013, the Thuraya IP+ was
launched, expanding the Companys
portfolio of mobile satellite broadband
terminals. Thuraya IP+ is the fastest and
lightest mobile satellite broadband terminal.
34
Annual Report 2013
Without compromising on portability, it

is also designed to achieve the fastest IP
speeds, ensuring quick and reliable access
to broadband data services over Thurayas
extensive satellite network. Enhanced
capabilities facilitate a wide range of
applications including live high quality
video broadcasting, web browsing, email,
social media communications, data transfer
and VoIP applications, as well as access to
corporate networks from remote locations.
AT&T will provide outbound GSM roaming

for voice and data services to Thuraya
users across the USA including Puerto Rico
and the US Virgin Islands. Thuraya has also
signed roaming agreements with Claro and
Telefonica, extending similar coverage to
11 countries in Latin and South America.
In September, Thuraya secured a

partnership with SMART Communications,
a leading provider in the Philippines, to
provide low-cost, seamless and reliable
crew-calling utilising the Thuraya network.
The service, branded Marino PhonePal,
is a multi-year deal that will see SMART
partner with Thuraya on network services
and hardware, and will connect thousands
of Filipino seafarers to their loved ones.
In addition to the initial agreement, the
Companies announced an amendment
in November, more than tripling the
total contract. Thuraya also partnered
with SMART to deploy emergency
communications aid following the typhoon
that struck the Philippines in November.
Thurayas services are available to

SoftBank users venturing outside of
terrestrial networks, or in areas where
those networks are either unavailable or
are vulnerable to natural disasters. Media,
energy, government, and all other types of
enterprises, as well as individual consumers
are able to avail themselves of Thurayas
services and solutions to enable them to
communicate from anywhere in Japan and
the maritime areas surrounding it.
In November, Thuraya and SRT Wireless,

a US-based company, announced the
development of the VIPTurbo module.
This module can serve as the engine
or new broadband terminals for the
Thuraya satellite network, enabling
manufacturers to integrate the module
into new satellite terminals, reducing
R&D costs and time to market.
In conjunction with SoftBank Mobile, a

telecommunications leader, Thuraya is now
bringing MSS services to Japan.
In a partnership with Chunghwa Telecom,

Thuraya now provides mobile satellite
service in Taiwan. The significance of
this licensing agreement means that
for the first time, Taiwanese consumers
and enterprise users alike will no longer
be required to apply for individual
licensing approval from Taiwans national
telecommunications regulator to use
mobile satellite services in the country.
Previously, only enterprise users were
eligible for licensing approval of MSS.
Thuraya expanded its roaming coverage

across the Americas and now has a
strategic partnership with AT&T, the
premier communications holding company
and one of the worlds largest carriers in
the United States. Under the agreement,
Etisalat
35
Leading with Vision

& Inspiration
36
Annual Report 2013
Etisalat
37
Management Review
Africa
Atlantique
Telecom
Africa
Etisalat Nigeria
Atlantique Telecom expanded its operations in 2013 and

continues to deliver innovative communication solutions to its
customers.
In 2013, Etisalat Nigeria continued to expand its sphere of

influence in the country with an augmented subscriber base
and with renewed confidence in the market.
Geographically represented in six African

countries (Benin, Cte dIvoire, Gabon,
Niger, Central African Republic and Togo),
Atlantique Telecom continues to position
itself as one of the leading telecom
operators in West and Central Africa.
In continuing to focus on the customer,

Etisalat Nigeria introduced the Mobile
QoE (Quality of Experience) Measurement
Solution. The initiatives objective was to
deploy a scalable, end-user and devicebased measurement solution that allows
Etisalat Nigeria to measure service quality
as experienced by its mobile customers.
An initiative to advance this strategy in

2013 was the establishment of direct
connectivity between the companys
OpCos using existing equipment and
infrastructure. This led to significant
CAPEX savings of more than USD 1.4
million, while improving international QoS
and its management among OpCos. The
subsequent elimination of transit costs
resulted in further savings during the year.
Owing to the acquisition of a Universal
License in June 2013, the company
introduced Mobile Broadband (3G)
Services in the region, while maintaining
affordability at the core of its pricing
strategy. As one of the biggest revenue
generating opportunities after voice,
Atlantique Telecom leveraged on the
Groups expertise to deliver innovative
products using 3G technologies during
the year. The availability of mobile
broadband drove the provision and
adoption of mobile Value Added Services
and vice versa.
Etisalat Group further expanded its mobile
commerce service Flous through its
subsidiary Etisalat Moov. Also known as
Flooz in the region, it enables subscribers
to transform their mobile phones into
digital wallets. The service allows them to
38
Annual Report 2013
pay for goods and services, transfer money

to friends and family, withdraw and
deposit cash, top up mobile phones and
even manage bank accounts. The game
changing initiative has lent a competitive
edge to the company in Francophone
Africas dynamic telecom industry.
With a contract that is structured in

accordance with strict SLAs, the focus
will be on improving QoS KPIs by 15 per
cent year-on-year. Atlantique Telecom has
since benefited from the best practices,
economies of scale and Ericssons globally
renowned experience in managed services.
Atlantique Telecom continued to target

the youth segment through the revamp
of Epiq Nation a mobile package that
brings a number of benefits to young
subscribers. Improvements to the offer
in 2013 included free night calls, free
Internet access during fixed time brackets
and more value driven SMS packages.
Another unique initiative during the year
was the Epiq Nation Tour, which allowed
the company to go nationwide and meet
its young subscribers in universities,
colleges and schools.
The company continued to expand its

footprint in the region with the opening
of eight new Moovstores, bringing
customers more proximity to Atlantique
Telecoms superior service delivery.
Furthering this goal, the Crystal Customer
Care Complaint System was launched in
the year to gain a 360 degree customer
management view.
Additionally, roaming tariffs were

harmonised in the year and set at par
across zones, except for countries in which
Etisalat or Moov were present, where they
were lowered. This was an opportunity to
leverage on Atlantique Telecoms footprint
in the region, while driving revenues
upward and providing competitive
roaming offers.
Finally, the year marked Moov Togos shift

to a new headquarter building called
Moov Etisalat. The new central location
and modern premises has made it a
renowned landmark in the country, further
improving the companys overall equity. At
the same time, the ability to now house all
departments under one roof has improved
internal communication and overall
working conditions, while impacting
positively on Atlantique Telecoms speed
to market innovative products and services
in the region.
The system used embedded test apps that

integrated into smartphones, tablets,
SIMs and PCs, providing end-to-end
insight into the performance of services
from a customers point of view. This in
turn helped the company to make swift
and informed business decisions. Always
putting the customer first, this addition
has enabled a more efficient business
model for Etisalat Nigeria.
Etisalat Nigeria continued to focus its
efforts on widening its customer base and
with the implementation of its New Value
Extraction Model, it was able to grow its
subscriber base by almost one third. In
order to increase revenues and improve
the spend of subscribers on the network,
the company identified the inherent
revenue potential of the existing base and
leveraged it to drive usage and recharge.
Etisalat Nigerias strategic partnerships,

such as that with the Enterprise
Development Centre of the Pan Atlantic
University, resulted in continued growth
for the company in 2013. The partnership
was the result of an effort to launch
the Small and Medium Enterprises
(SME) Toolkit in Nigeria, a project of the
International Finance Corporation (part of
the World Bank), which provides business
tools for small and growing businesses.
Internally, Etisalat Nigeria continued to
offer a world-class working environment
for its employees, encouraging them to
provide the highest level of service to its
loyal customers. In 2012, the company
had launched a staff recognition scheme,
Empact, to celebrate employee success
stories over the course of the year. This
year, 57 individuals and four teams
were recognised and rewarded for their
outstanding efforts. Through regular
reinforcement of Etisalats brand values,
an increasing number of employee
achievements are surfacing across the
business and are being shared this way to
inspire the entire workforce.
Etisalat Nigeria further strengthened its

CSR initiatives in 2013. The company
partnered with the Standards Organisation
of Nigeria (SON) and leading CSR
consulting firm, Thistle Praxis Consulting
(TPC), to bring two prominent initiatives
to the country for the very first time. The
resulting ISO 26000 Guidance Standard
on Social Responsibility and the Nigeria
Adoption Process (ISO26000:NAP) shone
positive light on Etisalat Nigeria, bringing
it global recognition as an industry
leader and pioneer in promoting social
responsibility practices in the country.
With a focus on efficiently delivering

superior customer experience and
innovative services, Global Managed
Network Services were introduced during
the year. Network operations were
outsourced to Ericsson Sweden with a
five-year contract in place for the future.
Etisalat
39
Management Review
Africa
Canar
Africa
Zantel
Sudans telecommunications market lent great growth

potential to Canar in 2013. The company continued to build
on its successes of 2012 and introduce new incentives for
customers in 2013.
Zantel finished the year by setting trends with its Epic

Nation Youth Offer, and adopted green technologies to
drastically reduce operational costs in 2013.
Capitalising on prior years successful

launch of the WiMAX service, Canar
commercially launched its broadband
services this year using a creative
marketing strategy that resulted in
doubled sales over a period of just one
month.
As one of its flagship products that has

now developed three optional offers
within it, the Epic Nation Youth Offer
capitalises on the consumption patterns
of the countrys youth by providing
cost-effective options with the maximum
possible benefits. This offer contributed
to 40 per cent of the companys prepaid
voice revenue in 2013 and has set a
benchmark in the industry; evident in the
way other operators have been inspired to
adapt it into their own schemes.
In 2013, the company also positioned

itself as an ICT service provider in Sudan,
giving customers the opportunity to see
the full scope its expertise in the market.
The new managed services portfolio
included WAN, Internet control, anti-spam
and co-location services. As a result, Canar
secured new corporate accounts in the
country and boosted its revenue streams.
The company also provided public Wifi
networks with a targeted approach to its
retail and corporate clients. Widespread
coffee shop and restaurant branding
of the service added to the companys
renewed efforts in acquiring brand
visibility in the country.
With a clear focus on delivering customer
centric communications solutions, Canar
40
Annual Report 2013
launched the Happy Call Initiative in

2013. This customer feedback programme
gave users a channel to voice their
overall satisfaction with the companys
services, resulting in an immediate drop
in the number of repeat calls to service
centres, with a positive long-term impact
on the companys customer satisfaction
index. Additionally, Canar launched the
KQI Checks, a quality check programme
targeted at high value corporate clients,
to help position the brand as the top
quality telecom provider in the country.
A loyalty programme for select corporate
clients that was introduced also yielded
positive results for the companys revenue
streams in 2013.
Canar introduced the Customer Value
Management (CVM) programme to
manage customer value by developing a
comprehensive view of its customers. As a
result, a new unit within the commercial
department was established with the aim
of providing customers more value added
services, while controlling churn.
Further building on the strength of its

strategic partnerships, Canars product
development team in collaboration with
Etisalat Digital Service Unit has seen its
first tangible results this year. The transfer
of invaluable industry know-how and
synergy with Etisalat Groups brand values
are just some of the milestones achieved
thus far.
Canar also moved to its
newheadquarters in the central business
district. The new headquarters have
been designed to provide greater ease
and accessibility to its customers and
business clients alike, while providing
a new and improved professional work
environment for its employees.
While maintaining customer centricity

at the core of its operations, Zantel also
introduced Product IVR (Interactive
Voice Response) mechanisms to enhance
the means and effectiveness of their
product information dissemination in
the country. It allowed subscribers to
call a dedicated line where they could
immediately opt for various product
offers. Building on this, a Unified USSD
(Unstructured Supplementary Service
Data) Code was introduced to simplify the
subscription process, whereby customers
could subscribe to Zantel products using a
single code. The success of the initiatives

was evident in the subsequent drop in
customer queries to call centres.
With a deep understanding of the
importance of the Agriculture sector
to the Tanzanian economy, Zantel
in partnership with the Ministry of
Agriculture, Food, Cooperatives and
Sibesonke Limited has launched Z-kilimo;
a special mobile service application for
farmers, enabling them to access timely
and relevant information regarding
modern farming methods from their
mobile phones. The service will offer
farmers information on soil preparation,
fertilizers, weather forecasts, crop varieties
and cultivation practices, while providing
them with a platform for discussion with
other farmers.
hours per site. Additionally, Zantels inhouse Green Power Solution that utilises
solar power instead of fuel resulted in
operational cost savings of up to 75 per
cent per month.
In 2013, Zantel adapted several new green

technologies, simultaneously reducing
operational costs. The implementation
of the Power Cube System (PCS) across
five mainland sites saved the company 78
per cent in monthly generator running
Etisalat
41
Inspiring future
generations
42
Annual Report 2013
Etisalat
43
Management Review
Asia
PTCL Pakistan
Asia
Ufone Pakistan
As Pakistans only integrated telecommunications company,

PTCL continued to expand its operations across the telecom
sector with a host of new product and service launches in 2013.
One of the companys most notable accomplishments has been

the launch of its innovative Mobile Financial Service, which won
the Global Mobile Money Awards Best bank led mobile money
programme of 2013.
PTCLs exponential growth in the broadband

sector has enabled Pakistan to be ranked
among the top countries with the highest
growth rate in broadband Internet. This is
attributed to the significant investment
PTCL made in infrastructure and technology
development across the country.
The achievement has created a distinct

advantage for the product that is now
viewed as a mobile wallet rather than a
simple tool for money transfers, while
reflecting the industrys recognition of
the companys efforts in developing
innovative products that empower the
local community.
With a keen eye for innovative

communication solutions, PTCL facilitated
a number of firsts in the fields of customer
service experience, wireless data services,
broadband Internet, value-driven bulk
offerings and green initiatives.
The companys EVO 3G Wingle launch in
2013 was the countrys first Wi-Fi enabled
USB, powered by PTCL Nitro. This facilitated
speeds of up to 9.3Mbps on the go, with
instant Internet sharing for up to five users
simultaneously. The impeding 3G threat was
transformed into an opportunity in June
2013 by initiating innovative improvements
in the overall performance of the business,
while creating even greater value for its
customers. The subsequent introduction of
12 and 16Mbps ultra high-speed broadband
data rates benefited users with unlimited
downloads at an affordable price.
The year also bode well for PTCLs ongoing
efforts to conduct CNIC online verification
of customers using NADRA, having
successfully been implemented in all the
targeted regions across the country in 2013.
The companys customer service experience
was further recognised by subscribers for
its Web Chat Offerings, which facilitated
instant feedback from Customer Care
representatives to user queries.
Widening its scope of operations, while
providing affordable communications
solutions to its customers, PCTL negotiated
more than 100 bulk deals with other players
44
Annual Report 2013
in the market in 2013 including competitors,

real estate developers and builders.
In an effort to garner increased revenues
by way of volume sales, PTCLs EVO Sales
Promo and EVO Tab Discounted Promos
gave subscribers the opportunity to avail
freebies and discounts on new purchases.
The company also launched its first Self
Service Portal in October 2013 to enhance
customer service experiences. The wholly
in-house developed website with real time
integration and BSS systems reduced churn
and the cost of operations, while increasing
sales. Its integration with IPTV and cash
machines is due to be completed in 2014.
In continuing to strive for customer
satisfaction, PTCL conducted a consumer
segmentation project classifying
subscribers into revenue classes as per
their billing history whereby the highestranking clients are given preferential
treatment for complaint resolution and
new service acquisition. Additionally,
the company has enhanced customer
experiences across the board by swiftly
dealing with user queries, both, at stores
and at call centres.
The company also launched a number
of cutting edge telecommunications
solutions to the business market
to ensure ongoing expansion of its
product portfolio and consistent service
satisfaction. Its Managed WAN service
received a great response from its business
clients, providing an ideal end-to-end
solution in managing an organisations
communication network infrastructure
and security. Additionally, the service
included options for premium SLA
guarantees, while taking into account
support resources such as onsite
installation, ground staff support and
service, network operation centres and

customer portals that deliver alerts,
reports and other vital user information.
In addition, the company launched Corp
Watch; a state of the art online complaints
management tool for its corporate
customers, which allows them to lodge
and monitor complaints with greater ease
and faster response times. Subsequently,
management has benefited from greater
insight into complaints and issues raised by
customers, thus increasing service delivery.
PTCL has continuously and proactively
sought to bring new and innovative
power back-up solutions to counter the
effects of the power crises in Pakistan. In
2013, PTCL developed Smart Switch a
low cost solution that simultaneously
monitors battery voltages and the main
power grid to alternate energy sources,
ensuring a round the clock functioning
power system for its operations. About
1,000 remote sites had been targeted for
its implementation and more than 80 per
cent have been successfully completed
this year.
Additionally, PTCL introduced solar power
solutions to numerous sites in 2013.
Broadening the scope of its ongoing green
initiatives, the company launched its Wind
Mill Project, the Fast Charge Battery Solution
for BTS and MSAG sites, deployed battery
backup solutions, installed free cooling units
to optimise OPEX and replaced battery banks
at MSAG/ONU locations.
Ufone also signed a strategic deal with

the National Bank of Pakistan to provide
its customers with Ubanks mobile
banking services. This has given Ufone
access to a new potential market, with
the Government of Pakistans pensioners
and the more than one million account
holders of the National Bank itself.
Ufone also launched Uthpack; the
countrys first youth centric product
that redefines traditional cellular service
offerings. It is designed to target the
urban youth who are looking for more
than just voice, SMS and data services.
Ufone partnered with a host of almost
300 brand outlets to provide Uthpack
users with discounts and free movie
tickets, making the product a success
across the country. It also won the best
social media campaign award at the
PASHA Awards.
In an effort to improve customer
experience, Ufone launched the countrys
first Self Service Smartphone Application
in August 2013 for Apple and Android
operating systems. Customers can now
view their weekly call, SMS and Internet
usage summaries, while managing
their Ufone subscriptions through the
applications new and improved userfriendly interface.
Through its Customer Management
Platform, the company rolled out

Inbound Campaign Automation to
boost its prior successful launch of
Outbound Campaign Operations. The
inbound marketing platform has been
successfully running across Ufones call
centres since May 2013. The platform has
empowered call centre agents to make
real-time decisions based on personalised
subscriber information now available to
them. The initiative has also increased
marketing opportunities to reach
customers in a focused and personalised
context, providing significantly higher
acceptance probabilities of the tailored
offers being pitched to subscribers.
management and green initiatives. To

reduce its carbon footprint in 2013
and beyond, Ufone installed long life
batteries with a pay as you go model. The
year 2014 is expected to reap the benefits
of this project, with a potential saving
of USD 10 million over its life cycle.
Additionally, the company converted
150 BTS indoor sites to outdoor sites,
resulting in a 15-30 per cent reduction in
power consumption in the year.
With continued drive for maintaining

customer centricity and quality service
experiences, Ufone initiated a Service
Excellence Drive to achieve the ISO
9001:2008 Certification for its customer
operations department. Through
the implementation of the Quality
Management System that is at the core
of the certification process, business
processes have been standardised,
document and record controls enabled,
while staff are working towards better
problem solving processes. Through the
programme, the company endeavors
to continually review and improve
the quality of service delivered, while
remaining conscious to the needs of its
subscribers and enhance overall user
experience.
The companys commitment to the
environment has remained strong. In
2013, Ufone launched several alternative
energy systems that included solar
hybrid and smart power solutions as
part of its efforts towards better power
Etisalat
45
Management Review
Asia
Etisalat Lanka
Asia
Etisalat Afghanistan
Building on the launch of its flagship store in 2012,

Etisalat Lanka continued to surprise the country with the
introduction of innovative products and services in 2013.
In what has seemed like a challenging task, Etisalat

Afghanistan strived to maintain and develop a strong foothold
in the countrys telecom industry in 2013.
The countrys first online book store,

Bookhub, was launched this year
in line with the onset of the global
e-books trend. The companys strategic
partnership with MD Gunasena and Micro
Image is expected to launch a number of
much anticipated local authors onto the
literary scene in Sri Lanka. In maintaining
this hype, the Bookhub application will
soon be available as a free download
for any PC, Andriod and Apple mobile
phone, hosting locally published works in
English, Sinhala and Tamil.
As the first operator to acquire a 3G

license and launch 3G services in the
country in 2012, Etisalat Afghanistan
had already established itself as a
forerunner in the countrys telecom
industry. The boost to the market
and the customer has built some
positive momentum and the company
capitalised on this upward trend by
continuing to roll out technological
upgrades and innovative products in
2013. It further introduced an array of
attractive bundle offers to the growing
customer base, including the Itekhaab
and Ramadan Kareem bundles. Through
these bundle offers, the company
launched segmented offerings during
the holy month of Ramadan, targeting
different customer segments, while
offering Hajj Pilgrims a range of
different roaming packages.
In continuing its focus on the customer

and building on this brand value, Etisalat
Lanka also introduced the countrys
first unlimited music, video and image
download service, called Music Unlimited.
In partnership with global music giant
Sony Music, the daily data subscription
service gives customers the opportunity
to own their favourite music and videos
from Sonys vast catalog of more than two
million songs in Sinhalese, English, Tamil
and of the Bollywood repertoire.
46
Annual Report 2013
Etisalat Lanka also focused its attention

on the countrys intensely competitive
postpaid market segment in 2013. In a
strategic move to tackle the challenge
of managing the payment cycle and
retention of postpaid customers, the
company initiated a segmentation
programme to identify and classify users
based on the number of years of their
patronage and payment patterns. The
subsequent classifications allowed Etisalat
Lanka to provide customised solutions,
benefits and services to its consumers.
This led to a more efficient collections
management system, while working
towards a pull collection strategy. Highvalue customers and enterprises benefited
from the greatly improved delivery service.
Additionally, the company focused on its
call centre hotline service, which is the
key customer communication point and
where more than 27 million interactions
were recorded over of the course of
2012. The Interactive & Intelligent Voice
(IVR) and SMS automated information
system is offered to all subscribers, where

they can obtain information related to
the companys products, services and
promotions. It also provides a channel
for the activation and deactivation of
services, and agent assistance.
The base system provided by ASPECT UIP
was upgraded to its latest version (V7.01)
in 2013 with full IP integration, further
enhancing customer service delivery. The
IVR response platform was also upgraded
to an intelligent multi-media interactive
solution with SMS push abilities. As a
result, customer behaviour and usage
patterns can now be used to promptly
guide subscribers to information most
relevant to them.
In line with growing global trends

towards optimising the use of mobile
marketing to boost revenues, increase
audience-brand proximity, and
extend brand communication into the
personal sphere, Etisalat Afghanistan
launched its Flytxt Campaign & SAS
(CRM) Management System in May
2013. The programme is aimed at
increasing the monthly take-up among
target subscribers, improving revenue
and reducing churn.
relations by identifying and resolving

root causes for customer grievances,
which led to a reduction in call centre
complaints by 69 per cent. Customer
call waiting times at the centres
was also reduced by 81 per cent by
adopting an outsourcing strategy.
Additionally, Etisalat Afghanistan

continued to enhance its loyalty
programme in 2013, with new reward
schemes and events to heighten
customer experiences, increase
product awareness, engage users and
retain their business. The company
also focused on boosting customer
Etisalat
47
Management Review
Etisalat
Services
Holding (ESH)
The key for the future of any country and any institution
lies in the talent, skills and capabilities of its people.
As part of the Etisalat Group, ESH brings
strategic direction and corporate support
to eight independent business units that
work in a wide spectrum of industries,
providing state-of-the-art processes,
technologies, products and services to the
telecom sector as well as other industries,
governmental and private, in the UAE, the
Middle East and globally.
ETISALAT FACILITIES
MANAGEMENT (EFM)
EFM provides a single point of contact to
its valued customers in offering Integrated
Facilities Management Solutions tailored
to the customers needs. Maintaining a
keen focus on delivering customer centric
communications solutions, EFM further
improved the quality of its services in
2013. State of the art maintenance tools
and technologies were introduced to
provide customers with a host of access
tools that helped track their work progress
and status. This was possible through the
Maximo System, which plans and controls
work flow patterns in EFM. By maintaining
its ISO Certifications, the company has
further improved the implementation of its
customer centric processes and procedures,
resulting in a two-fold increment in the
customer satisfaction index.
EFM continued to pioneer several advanced
green initiatives in 2013, with Mabanina
being one of the most attractive and
profitable to the company and customers
alike. The new, green, sustainable and
responsible facilities management service
product is tailored to the needs of its
customers and is aimed at reducing
the clients bills by 20 per cent. It also
facilitates an upgrade of the clients airconditioning units and lighting systems for
free, while enhancing asset lifecycles and
reducing their carbon footprint.
ETISALAT REAL ESTATE (eRE)
In 2013, eRE introduced property
management services to external clients
48
Annual Report 2013
that included financial institutions, local

government and large fund entities.
UAEs strong economic growth has led to
an increasing supply of new real estate
commercial properties, and by focusing on
a specialised set of clients, eRE hopes to
capture 10 per cent of the market in the
next three years.
eRE implemented increased flexibility
in leasing terms that reflected market
rental rates and other financial conditions
prevalent during the year. Furthermore,
the expansion of additional leasing
opportunities was organised to maintain a
competitive edge in the market.
Finally, eRE introduced an asset
optimisation initiative in 2013 to increase
the level of interaction and understanding
among the group of companies, with an
aim to preserve, protect and optimise
property assets in the UAE. This entailed
a number of new undertakings, which
included the optimisation of office space,
proactive leasing of retail spaces within
business centres and HQ buildings to
enhance customer experiences (coffee
shops, telecom equipment and accessories).
The initiative also had a positive impact
internally by enhancing employees
corporate spirit, encouraging them to focus
on reducing costs and increasing revenues.
TAMDEED PROJECTS
Tamdeed Projects received distinguished
business excellence and international
recognition in 2013.The evaluation
committee of The World Confederation of
Businesses rewarded Tamdeed Projects with
The Bizz trophy under the category of
Inspirational Company.
Through consistent managerial excellence,
Tamdeed Projects have become a leader in
their domain, continually demonstrating
market superiority with progressive business
models and constant brand recognition.
The company is now recognised as a gold
member of the FTTH Council, a corporate
member of BICSI, an elite member of the

World Confederation of Businesses, and ISO
14001-2004, OHSAS 18001-2007 and ISO
9001-2008 certified.
The company has also maintained its
efforts to achieve group synergy with
Etisalat by continually aligning its service
delivery portfolio to comply with Etisalats
outsourcing roadmap for the provisioning
of video, data and voice services.
E-MARINE
In 2013, the regions offshore energy
sector has shown significant growth
potential and in acknowledging the
expansion opportunity for its assets
capacity, E-marine adopted a targeted
approach to extend its operations in to
the energy sector. As part of its ongoing
strategy to enhance assets and provide
customer centric service, the company
began constructing its first vessel,
CS MARAM, which is expected to be
operational by mid-2014.
In an effort to enhance its customer base,
E-marine is gearing towards establishing
a new operational base on the East Coast
of Africa, which will result in an increased
number of cable projects in the upcoming
years. The initiative will also significantly
shorten transit and down time, overall
repair costs to damaged cables, and have a
positive impact on the lives of people who
depend upon its products and services.
Amidst highly competitive market
dynamics with both, local and international
players, E-marines continued focus
on understanding customer needs has
helped position the company favourably
in 2013. This was marked by a significant
accomplishment of securing more than
95,000 km of cable maintenance works
that span the Red Sea, East Africa, Central
and Western Indian Oceans. This has
further strengthened E-marines credibility,
trustworthiness and unmatched service
record in the region and internationally.
ETISALAT INFORMATION
SERVICES (eIS)
With a vision to be recognised as the
number one reference for commercial
and residential directories in the UAE and
beyond, eIS has been the leading directory
services provider in the country since the
publication of its first directory in 1976.
The company maintains UAE consumers
directory listing database, which is used
by Directory Enquiries (181) and also
publishes annual telephone directories
through print, online and mobile mediums.
In keeping with its ethos for innovation
and customer centricity, eIS launched a
number of new services in 2013.
This included Daleel al seha; a mobile
application that serves as a health guide
by providing smart search functionalities
in Arabic and English on the countrys
health, wellness and beauty sectors. It
was showcased at the 2013 GITEX show
where it received a great response from
the market. The App also hosts interactive
maps, option to call listings directly from
the application and save business details
into the favourites panel for easy future
access. Its integrated GPS even allows
users to find the closest business listings
relevant to their search criteria and route
their movements accordingly.
Additionally, eIS launched Daleel al
seyaha to its online portfolio of services,
which is a comprehensive bilingual guide
to travel, leisure and tourism service
providers in the UAE. It provides tourists,
business travellers and residents with
an easy reference and contact tool to
connect with relevant businesses across
the country. At the same time, it connects
industry vendors and suppliers to help
them find new business opportunities.
EBTIKAR CARD SYSTEMS
Ebtikar Card Systems is a major provider
of smart card solutions in the UAE and
was established in 1996 to fulfill the

growing card and application demands
of the market. In its continued effort to
provide customer centric and value driven
telecom products and services, Ebtikar
introduced new SIM based solutions in
2013 to address the growing needs of its
dynamic consumer base. These included
the Trusted SIM Management (TSM)
solution, Device Management System and
a new STK development.
With a drive for innovation, Ebtikar
constantly develops new products and
services, such as the new SIM and scratch
cards that it introduced in the year, which
included the M2M and NFC SIM cards,
and new multi-pin scratch cards. In 2013,
the company has continued to provide
customer oriented products and services
enabling telecom operators to deliver
airtime and value-added services globally.
EMIRATES DATA CLEARING
HOUSE (EDCH)
EDCH is one of the leading clearing houses
in the world, offering complete solutions
to GSM operators. As the first data-clearing
house in the Middle East, EDCH has
expanded its sphere of influence over the
years to include Asia, Africa and Europe.
In striving to enhance its products and
apply state-of-the-art solutions to support
the fast changing mobile industry, EDCH
launched a number of new products in
2013. Two such new initiatives included
SIM Watch and Online Reporting that
targeted current and potential new
clients. The products are aimed at helping
mobile operators enhance their roaming
businesses and assist them in generating
increased roaming revenues. While SIM
Watch is designed to prevent misuse and
fraudulent activity in roaming test SIM
cards, Online Reporting provides users
with a powerful business analytics tool
that monitors and analyses roaming
service usage patterns.
Further strengthening its presence in the

market, EDCH acquired a new partnership
with global mobile services cloud provider
Infobip. The move was in anticipation of the
companys new SMS service launch for its
current and future clients.
ETISALAT ACADEMY (ETAC)
The Etisalat Academy Centre of Excellence
in Quality was launched as a joint effort
between ESH Quality Services and ETAC to
help develop the level of quality and business
excellence delivered by government bodies,
the corporate sector and individuals. This was
followed by a number of partnerships with
internationally renowned certification bodies,
including the Dubai Quality Group, Bureau
Veritas and EFQM.
Over the course of the year, ETAC trained 700
employees in crisis management and business
continuity principles. The initiative shed light
on the key stages of performing best practices
in the immediate response to a major incident.
It defined the roles and responsibilities of
corporate employees and what entails the
implementation and maintenance of effective
crisis management processes.
In line with its geographic expansion strategy,
ETAC also completed a training project
of 150 employees in the Ivory Coast and
continued to support succession planning and
the organisational development of Etisalat
Afghanistan.
Finally, in November 2013, the academy
launched the first Smart Government
Conference to help public entities
transition from an electronic to a smart
era, demonstrating innovative applications
and case studies to provide a platform for
intellectual exchange globally.
Etisalat
49
Management Review
Human
Capital
Passion to excel
drives Etisalats
people to deliver
outstanding
business results.
Our human resources strategy enables
employees to live this passion; unleash
their talent, skills and capabilities. Our
strategy is built on three pillars: the
culture and values, talent pool and
operational excellence.
Our culture and values are essential
to engage employees to contribute to
our success. Being an Etisalat Citizen is
synonymous to being open, collaborative,
innovative and accountable. The Global
Values Framework was created through the
combined efforts of over 200 employees
across Etisalats operating companies.
They developed the statement Etisalat is
a global family; putting customers at the
centre of its actions; is innovative and
focused on its people that represents who
Etisalat staff are and how they behave as
employees of Etisalat Group. An illustration
of this open and collaborative culture is
the high participation rate in The Global
Employee Engagement Survey. With more
than 20,000 responses, the survey shows
employees believe that management take
action based on their feedback. And indeed,
several suggestions were implemented,
including a more efficient communication
model between the various levels of
employees, and an improved performance
management system.
The second pillar of the human resource
strategy involves the continuous
investment in enhancing the capabilities
of our talent pool. In 2013, senior
executives joined the Group and the new
recruits boosted strategically significant
operational areas, such as digital services.
The year saw new additions to the C-Suite
of Mobily, Etisalat Afghanistan, Etisalat
Misr, Atlantique Telecom and Etisalat UAE.
50
Annual Report 2013
Our first Group-wide HiPo programme

targeting High Potentials employees to
develop their leadership skills was an
outstanding success with the graduation
of 75 employees. A new intake of 100
trainees will join the program in 2014.
The encouraging track record combined
with low graduation attrition rates
has highlighted the programme as a
promising source of talent throughout
the organisation. Additionally, new
international assignment policies were
introduced to fully optimise the spread of
this new talent pool.
senior GSMA officials, potential ICT

partners and European government
officials. This will further help us in
developing new technologies and
conducting research that will encourage
regulators to open markets for our
mHealth applications in the near future.
Our third pillar, operational excellence,

aims at ensuring an effective and efficient
business management model. Two
measures help monitor our operational
excellence; the productivity index and the
performance indicator. The productivity
index measures operational efficiency
such as customers per employee, revenue
per employee and staff cost ratios. The
performance indicator reflects prompt and
efficient managerial action in instances of
staff level reductions, HR policy changes
and the outsourcing of non-core activities.
In 2014 we will continue our journey

toward world class HR excellence through
engaging passionate employees across
the group.
We believe the Etisalat Group HR

strategy is well balanced as it integrates
the complexity of being a strategic
international player while delivering
efficient local business partnerships in all
of its operations.
The reviewed Performance Management

System strongly contributed to align
senior executives and employee objectives
with the goals and aspirations of the
Groups corporate strategy. It bridged
performance and associated rewards in a
consistent and coherent approach in all
the operations. Finally, the HR Excellence
Scheme ran for the third year in 2013,
and helped align our HR Excellence score
for the group and some of its Operating
Companies with best practice.
During the year Group Human Resources
also introduced a number of initiatives
to increase staff engagement including
sponsoring and participating in a unique
and challenging cycling marathon that
spanned 2,100km. The 13-day Grand Tour
from Brussels to Barcelona provided a
platform for the demonstration of our
innovative mobile health solutions to
the challenges of diabetes. The initiative
successfully presented our brand as a
unified entity to global competitors,
Etisalat
51
Management Review
Etisalat for Good

Corporate Social
Responsibility
Under the banner

Etisalat for
Good, Etisalat
and its operating
companies have
been actively
working on Mobile
for Development
initiatives in 2013,
in collaboration
with its global
partners.
The efforts have helped bridge the gap
between emerging markets and developed
nations, while generating impressive
digital dividends in the form of jobs,
economic growth and stability.
In Sri Lanka, Etisalat is providing
access to education using tablets and
special software to a number of rural
communities. During the first phase of the
project, two rural villages were chosen and
10 android tablets were distributed among
48 families. Several Apps and locally
relevant information was pre-installed on
the tablets, and distributed to adults and
youth alike.
The programme has since been rolled out
into schools and has earned the attention
of global stakeholders, and was also
featured in the Dubai Expo 2020 bid video.
Android Village hub is now earmarked
for replication in Egypt and other Etisalat
markets, further highlighting the success
of the initiative.
Etisalat has continually helped empower
women and people with special needs,
especially in communities lacking social
or economic development. As a reflection
of these efforts, GSMA awarded Etisalat
one of the only two financial grants for
projects that will provide sustainable
benefit to women in three of the
companys West African markets through
52
Annual Report 2013
its recently launched Weena initiative.

Etisalats Mobile Baby, a complete
suite of services powered by mobile
technologies that allow healthcare
workers to provide critical medical care
in rural areas, has seen continued success
during the year. More than 1500 mothers
and expectant mothers were registered to
the programme, while 261 traditional birth
attendants were trained on how to use the
programmes tools. Subsequently, related
maternal care technologies were launched
in Tanzania, Nigeria and Sri Lanka, with
future projects lined up for Niger. Each of
these initiatives have contributed tangibly
and form the core of Etisalats UNGC
efforts to help reduce child mortality
rates, while simultaneously improving
maternal health in the regions.
Etisalat supports the growing demand for
Mobile Commerce, to provide secure and
accessible financial services to unbanked
citizens in emerging countries. Whether
its remittance between individuals or the
ability to purchase power or other utilities,
demand and usage is growing rapidly
across the companys footprint. In 2013, a
number of its mobile commerce solutions
assisted in improving the living conditions
of refugees in many parts of Niger, Egypt,
Afghanistan and Pakistan through its
Social Cash platform.
The UAE, Egypt, Saudi Arabia and other
countries within Etisalats footprint
rank among the worst effected nations
suffering from diabetes. In an effort to
help these countries fight diabetes, a
team of 12 Etisalat volunteers from its
operations in UAE, Afghanistan, Egypt,
Saudi Arabia, Pakistan, Sudan and
Tanzania were recruited over a threemonth campaign to represent Team
Etisalat in the GSMA organised mHealth
Grand Tour. This culminated in a 13-day
cycle ride from Brussels to Barcelona
testing new technologies, supporting
research and raising awareness of
technologies to help manage diabetes. As
a result, initiatives are being undertaken
in collaboration with the UAE Ministry of
Health to spearhead discussions across the
region on the importance of mHealth and
the necessary regulation to facilitate its
effective use.
need for smart buildings and cities to help

reduce waste and pollution. In the UAE,
Etisalats Emirates Energy Star programme
has the ambitious target of reducing the
countrys carbon footprint by 20 per cent
within an optimum period. It targets old
buildings equipped with Etisalats fiber
network, and connects them to a centrally
managed control centre. The solution
reduces power consumption, especially
from air conditioning, and has already
been installed in 80 buildings across
the country. Thus far, Etisalat has saved
the equivalent of 5,588 trees by helping
enterprises eliminate more than 26,025
tonnes of unnecessary CO2 emissions,
through 24/7 monitoring, streamlining
and reducing energy usage of heating,
ventilation and air conditioning (HVAC)
equipment in the facilities.
In 2013, Etisalat completed its first solar
project in Sri Lanka and became the
first operator on the island to deploy
Net Metering. The 6KW solar powered
solution is expected to reduce power
costs by half. Etisalats engineering teams
across Sri Lanka are working on further
optimising solar power generation at
a number of its sites. The company is
committed to ensuring its networks
and systems deliver the highest quality
of service in a responsible and efficient
manner, with a plan to convert at least
300 sites in the future to Net Metering.
Etisalats strategy continues to be inspired
by international benchmarks set by the
International Standards Organisation (ISO
26000) and the Global Reporting Initiative
(GRI). The company reiterated its support
and commitment to the 10 Principles of
the United Nations Global Compact in
2013, focusing on labour, human rights,
the environment and anti-corruption,
while continuing to engage proactively
and transparently with its stakeholders.
Additionally, Etisalats Chief Executive
Officer, Ahmad Julfar has been providing
leadership since 2012 as the signatory
for the Groups United Nations Global
Compact commitments. Mr. Julfar also
provided the vision for these initiatives
as a board member of GSMAs Mobile for
Development Foundation.
As environmental pressures grow globally,

there is an increasing pressure on the
Etisalat
53
Corporate
Governance
The General Assembly
The General Assembly is composed of all
the shareholders of the Corporation, and it
exercises all its powers in accordance with
the law and the Articles of Association.
The General Assembly is entrusted with
approving the Boards Annual Report on the
Corporations activities and financial position
during the preceding financial year.
The General Assembly is also entrusted
with appointing external auditors and
approving their report, discussing and
approving the balance sheet and the
profit and loss account for the previous
year, as well as the Board of Directors
recommendation with regards to the
distribution of dividends
Board of Directors
The Board of Directors carries out the
Corporations business and for that
purpose, exercises all powers of the
Corporation, except those reserved by
Law or the Articles of Association for the
General Assembly of the Corporation.
The Board of Directors of Etisalat consists
of eleven members, seven of whom were
appointed, including the Chairman of the
Board pursuant to the Federal Decree No.74
of 2012, Appointing the Governments
Representatives in the Board of Emirates
Telecommunications Corporation.
The other four members of the Board of

Directors were elected by National (nongovernment) shareholders who hold 40 per
cent of the Corporation shares.
The Corporation is committed to apply
best practices and corporate governance
standards, taking into account best
international standards in this regard
and the applicable laws in the UAE.
Therefore, the Corporation took into
account when composing its Board of
Directors the requirements of Ministerial
Resolution No.518 of 2009 Concerning
Governance Rules and Corporate Discipline
Standards with respect to the capacity
of Board members, whereas all current
Board members are non-executives and
Independent members.
Committees of the Board of
Directors:
There are currently three Board
Committees that have been
established to assist the Board with its
responsibilities, those Committees are
1) Audit Committee .
2) Nomination and Remuneration
Committee .
3) Investment and Finance Committee.
Audit Committee
As the Corporation is committed
to implementing governance best
international practice standards, which
are also compatible with applicable Laws
and Regulation in the UAE, The Board
of Directors has composed the Audit
Committee to support it in discharging
its duties.
The Audit Committee undertakes its duties
in accordance with its Charter, which
54
Annual Report 2013
comply with Ministerial Resolution No.518

of 2009 concerning Governance Rules
and Corporate Discipline Standards. This
Charter is considered to be a delegation
from Board to the Audit Committee to
undertake the tasks mentioned therein,
which include the following:
Ensuring the safety and integrity
of the Corporations financial
statements
Reviewing and implementing systems
and internal control policies, and
supervising the Internal Control
Department to ensure that it is
undertaking its duties accurately
Monitoring the Corporations
commitment to the laws and
regulations
Developing and implementing
a policy contract with the
external auditor and ensuring its
independence
Reviewing financial control systems
and risk management
The Committees Charter has clarified
its duties in detail, and how it shall
be comprised and the conditions to
convene its meetings and the quorum
for same, in addition to the way it shall
take its decisions.
The Committee is comprised of three (3)
non-executive and independent members
of the Board of Directors, in addition
to an external member experienced in
accounting and finance, The Committee
convene quarterly or whenever necessary.
Nomination and Remuneration

Committee:
To implement governance best practices
and in compliance with applicable Laws
in this regard, the Board of Directors
has composed the Nomination and
Remuneration Committee to undertake
its duties according to its Charter, which
comply with Ministerial Resolution
No.518 of 2009 Concerning Governance
Rules and Corporate Discipline Standards.
This Charter is considered to be a
delegation from the Board of Directors
to the Committee to discharge its duties
mentioned therein.
The main objective of the Nomination
and Remuneration Committee is to
ensure that the Board of Directors is
undertaking its duties diligently and is
complying with Governance Rules and
Discipline Standards. The Committee
is also responsible for organising the
procedures regarding the Nomination
to the Board of Directors and to
constantly ensure the independence of
independent Board of Directors Members
and to report to the Board of Directors
in the event that an independent Board
member loses his independency.
The Committee is further entrusted
with developing policies with respect
to determining the Corporations needs
for talents at the level of executive
management and employees as well
as developing policies with respect
to granting awards, incentives, Board
Members Remunerations and Salaries of
the Executive Management and employees
in a manner that achieves the Corporations
objectives and suits its performance.
In the course of exercising its functions,

the Committee shall take into
consideration the competitive nature
of the Corporate Strategy and the fair
compensations commensurate with
the same to attract and retain talented
employees for achievement of best results.
Nomination and Remuneration
Committee comprise four (4) nonexecutive independent members from the
Board of Directors.
Investment and Finance Committee
In addition to the Audit Committee and
the Nominations and Remunerations
Committee provided for in the Ministerial
Resolution No.518 of 2009 Concerning
Governance Rules and Corporate
Discipline Standards, the Board of
Directors of Etisalat constituted the
Investment and Finance Committee to
assist the Board to carry out his functions
related to Corporations internal and
external investments. The Charter of the
Committee defined the functions and
duties assigned to the Committee and
specified the cases where the Committee
is entitled to make decisions as it deems
appropriate. On the other hand, it defined
the cases where the Committees role is
exclusive to issuance of recommendations
for the Board to pass appropriate
resolution thereon. This Charter is
deemed an authorisation by the Board for
the Committee to carry out the functions
and responsibilities stipulated therein.
Operating Structure of the

Corporation
During 2013, Etisalat Group continued
to implement its revised group structure,
which was commenced in 2009. The
purpose was to manage its international
expansion strategy, protect value resulting
from the Corporations United Arab
Emirates operations, secure value creation
from its fifteen international operations,
and to gain the trust of its stakeholders by
putting in place a solid structure based on
corporate punctuality and governance in
line with best practices.
At the level of the United Arab Emirates,
the Group organisation structure features
two autonomous Operating Units:
Etisalat UAE Unit (which is entrusted with
provisioning Licensed Telecom Services in
the United Arab Emirates); and the Etisalat
Services Unit (a wholly owned holding
company entrusted with providing certain
non-core, non-telecom services to the
Corporation, as well as to third parties).
The Group exercises and sets its various
activities and responsibilities and sets its
key corporate policies, prepares plans, and
monitors the operational and financial
performance of its operating companies,
and reports the same to the Board of
Directors on a regular basis.
The Investment and Finance

Committee comprises five (5)
independent non-executive members
from the Board Members.
The Committees Charter provided for the

detailed powers of the committee and
how to be constituted and formed, the
terms of convention of its meetings, the
required quorum for convention of its
meetings and how to make its decision.
Etisalat
55
Financials
Independent Auditor's Report to the Shareholders
Report on the Consolidated Financial Statements

We have audited the accompanying consolidated nancial statements of Emirates Telecommunications Corporation (the Corporation)
and its subsidiaries (together the Group) which comprise the consolidated statement of nancial position as at 31 December 2013 and
the consolidated statement of prot or loss, consolidated statement of comprehensive income, consolidated statement of changes in
equity and consolidated statement of cash ows for the year then ended, and a summary of signicant accounting policies and other
explanatory information.
Managements Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated nancial statements in accordance with
International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the
preparation of consolidated nancial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated nancial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance whether the consolidated nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated nancial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the consolidated nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal
control relevant to the entitys preparation and fair presentation of the consolidated nancial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the consolidated nancial statements.
We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the accompanying consolidated nancial statements present fairly, in all material respects, the nancial position of the
Group as at 31 December 2013, and its nancial performance and its cash ows for the year then ended in accordance with International
Financial Reporting Standards.
Report on Other Legal and Regulatory Requirements
We have obtained all the information and explanations considered necessary for the purposes of our audit. The Corporation has
maintained proper books of account and has carried out physical verication of inventories in accordance with properly established
procedures and the nancial information included in the Chairmans statement is consistent with the books of account of the
Corporation. Nothing has come to our attention which causes us to believe that the Corporation has breached any of the applicable
provisions of the UAE Federal Act No. (1) of 1991, as amended by Decretal Federal Code No. 3 of 2003, or of its Articles of Association,
which would materially affect its activities or its nancial position as at 31 December 2013.
Deloitte & Touche (M.E.)

Abu Dhabi, United Arab Emirates
Mutasem M. Dajani
(Reg. No. 726)
4 March 2014
56
Annual Report 2013
Etisalat
57
1
Financials
Emirates Telecommunications Corporation
Consolidated statement of prot or loss for the year ended 31 December 2013
Consolidated statement of comprehensive income for the year ended 31 December 2013
Notes
Revenue
2013
AED000
2012
AED000
38,853,238
32,946,300
Operating expenses
(24,700,384)
(19,533,493)
Impairment and other losses
(1,374,176)
(2,825,365)
Share of results of associates and joint ventures
13
1,754,341
1,263,155
14,533,019
11,850,597
(6,115,016)
(6,451,252)
8,418,003
5,399,345
Operating prot before federal royalty

Federal royalty
Operating prot
Gain on partial disposal of investment in an associate
14
860,138
Finance income
440,199
721,111
Finance costs
(458,607)
(322,938)
8,399,595
6,657,656
(648,647)
(85,910)
7,750,948
6,571,746
Prot before tax

Taxation
Prot for the year
Prot for the year
The equity holders of the Corporation

Non-controlling interests
34
Remeasurement of dened benet obligations - net of tax
Chairman
7,750,948
6,571,746
(126,618)
(1,969,056)
(889,879)
Items that may be reclassied subsequently to prot or loss:

Exchange differences on translation of foreign operations
Loss on revaluation of available-for-sale nancial assets
15
(138,909)
(2,305)
Reclassication adjustment relating to available-for-sale nancial asset impaired

during the year
15
264,310
(1,970,273)
(892,184)
5,780,675
5,679,562
6,063,592
5,979,318
(282,917)
(299,756)
5,780,675
5,679,562
Total other comprehensive loss
6,741,819
Attributable to:
672,560
(170,073)
The equity holders of the Corporation
7,750,948
6,571,746
AED 0.90
2012
AED000
Items that will not be reclassied subsequently to prot or loss:
7,078,388
Earnings per share
2013
AED000
Other comprehensive income / (loss)
Total comprehensive income for the year
Prot attributable to:
Basic and diluted
Notes
AED 0.85
Board Member
The accompanying notes on pages 7 to 55 form an integral part of these consolidated nancial statements. The Independent Auditor's report is set out on page 1.
The accompanying notes on pages 63 to111 form an integral part of these consolidated financial statements.
The independent Auditors report is set out on page 57.
58
Annual Report 2013
The
accompanying
notesreport
on pages
7 toon55
form
The independent
Auditors
is set out
page
57.an integral part of these consolidated nancial statements. The Independent Auditor's report is
set out on page 1.
Etisalat
59
Financials
Consolidated statement of changes in equity for the year ended 31 December 2013
Consolidated statement of nancial position as at 31 December 2013

Notes
Non-current assets
Goodwill
Other intangible assets
Property, plant and equipment
Investment property
Investments in associates and joint ventures
Other investments
Trade and other receivables
Loans to related party
Deferred tax assets
Current assets
Inventories
Current income tax assets
Due from associates and joint ventures
Other investments held for sale
Cash and cash equivalents
9
9
10
11
9,14
15
18
16
8
Current liabilities
Trade and other payables
Borrowings
Payables related to investments and licenses
Current income tax liabilities
Finance lease obligations
Provisions
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Equity attributable to the equity holders of the Corporation
Total equity
Chairman
2012
AED000
(Restated)
5,552,266
9,447,281
31,319,161
41,211
7,062,009
866,984
595,981
2,390,194
243,042
57,518,129
5,929,087
10,226,108
31,040,677
41,681
6,325,335
1,451,495
155,051
2,906,069
286,607
58,362,110
498,232
10,613,248
503,396
683,833
448,448
15,450,248
28,197,405
85,715,534
422,756
10,824,624
554,139
508,441
13,934,076
26,244,036
84,606,146
828,565
4,467,122
68,751
1,749,839
2,460
201,089
1,911,773
9,229,599
598,149
4,482,841
67,369
1,818,053
3,508
169,971
1,986,663
9,126,554
20
21
22
8
23
24
21,164,411
1,404,543
2,963,623
185,812
2,564
1,172,286
26,893,239
36,122,838
49,592,696
20,358,010
1,323,597
3,005,899
229,965
5,980
643,569
25,567,020
34,693,574
49,912,572
27
28
7,906,140
28,266,980
4,359,024
40,532,144
9,060,552
49,592,696
7,906,140
29,115,839
3,492,333
40,514,312
9,398,260
49,912,572
17
18
8
16
15,29
19
Total assets
Non-current liabilities
Borrowings
Deferred tax liabilities
Provisions
Provision for end of service benets
2013
AED000
20
21
22
8
23
24
26
12
Notes
Balance at 1 January 2012
Total comprehensive income for the
year
Other movements in equity
12
Owners'
equity
Noncontrolling
interests
Share capital
Reserves
Retained
earnings
Total
equity
AED000
AED000
AED000
AED000
AED000
AED000
7,906,140
28,686,726
2,786,813
39,379,679
2,324,172
41,703,851
(762,501)
6,741,819
5,979,318
(299,756)
5,679,562
(4,330)
(9,955)
(14,285)
332,817
318,532
1,195,944
(1,211,295)
(15,351)
15,351
29
7,259,290
7,259,290
33
(4,743,684)
(4,743,684)
(71,365)
(71,365)
(233,614)
(304,979)
7,906,140
29,115,839
3,492,333
40,514,312
9,398,260
49,912,572
(985,167)
7,048,759
6,063,592
(282,917)
5,780,675
28
136,308
(136,308)
Disposal of partial interest in

subsidiaries
12
284,220
284,220
87,233
371,453
Acquisition of non-controlling
interests
12
(7,804)
(7,804)
(5,782)
(13,586)
Additional equity from noncontrolling interests
12
16,835
16,835
Dividends
33
(6,322,176)
(6,322,176)
(153,077)
(6,475,253)
28,266,980
4,359,024
40,532,144
9,060,552
49,592,696
Transfer to reserves
Consolidation of Pakistan
Telecommunication Company Limited
Transaction with owners:

Dividends
Effect of changes in accouting policy
for remeasurement of dened
benet obligation
Balance at 31 December 2012 (as
restated)
Total comprehensive income for the
year
(4,743,684)
Balance at 31 December 2013
7,906,140
Board Member
60
Attributable to equity holders of the Corporation
The accompanying
on pages
7 to 55 form an integral part of these consolidated nancial statements. The Independent Auditor's report is set out on page 1.
Annualnotes
Report
2013
Etisalat
61
Financials

Consolidated statement of cash ows for the year ended 31 December 2013
Notes
2013
AED000
8,418,003
2012
AED000
5,399,345
Depreciation
10, 11
3,798,455
2,670,013
Amortisation
809,093
714,725
1,374,176
2,825,365
Share of results of associates and joint ventures
13
(1,754,341)
(1,263,155)
300,806
(15,873)
Operating prot
Notes to the consolidated nancial statements for year ended 31 December 2013
Adjustments for:
Provisions and allowances

Other non-cash movements
Operating prot before changes in working capital
4,449
12,946,192
10,334,869
Changes in working capital:

Inventories
Due from associates and joint ventures
Cash generated from operations
Income taxes paid
Payment of end of service benets
26
Net cash generated from operating activities
(75,475)
46,035
(175,392)
(198,345)
210,436
(1,516,093)
995,923
2,188,102
13,901,684
10,854,568
(490,317)
(188,627)
(437,806)
(179,985)
12,973,561
10,485,956
1. General information
The Emirates Telecommunications Corporation Group (the Group) comprises the holding company Emirates Telecommunications
Corporation (the Corporation) and its subsidiaries. The Corporation was incorporated in the United Arab Emirates (UAE), with
limited liability, in 1976 by UAE Federal Government decree No. 78, which was revised by the UAE Federal Act No. (1) of 1991 and
further amended by Decretal Federal Code No. 3 of 2003 concerning the regulation of the telecommunications sector in the UAE.
In accordance with Federal Law No. 267/10 for 2009, the Federal Government of the UAE transferred its 60% holding in the
Corporation to the Emirates Investment Authority with effect from 1 January 2008, which is ultimately controlled by the UAE
Federal Government. The address of the registered ofce is P.O. Box 3838, Abu Dhabi, United Arab Emirates. The Corporations
shares are listed on the Abu Dhabi Securities Exchange.
The principal activities of the Group are to provide telecommunications services, media and related equipment including the
provision of related contracting and consultancy services to international telecommunications companies and consortia. These
activities are carried out through the Corporation (which holds a full service license from the UAE Telecommunications Regulatory
Authority valid until 2025), its subsidiaries, associates and joint ventures.
These consolidated nancial statements were approved by the Board of Directors and authorised for issue on 4 Mar ch 2014.
2. Signicant accounting policies
Cash ows from investing activities

(71,038)
(124,164)
Proceeds from capital reduction of a joint venture
Net acquisition of other investments

14
40,000
Proceeds from disposal of investment in an associate
14
1,856,268
Loans to associates
Purchase of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Purchase of other intangible assets
Proceeds from disposal of intangible assets
Dividend income received from associates and other investments
Cash acquired on consolidation of PTCL
Cash derecognised upon deconsolidation of Etisalat DB Telecom Pvt Ltd (EDB)
Finance income received
29
12
Net cash used in investing activities
(335,996)
(5,567,248)
(3,881,356)
73,586
12,337
(766,638)
(282,992)
11,392
1,010,169
1,006,038
427,682
1,452,608
(654,926)
715,784
(4,853,487)
(225,007)
Cash ows from nancing activities

Proceeds from borrowings and nance lease obligations
3,491,716
1,404,134
Repayments of borrowings and nance lease obligations
(3,142,979)
(2,547,119)
Dividends paid
(6,475,253)
(4,743,684)
(458,607)
(440,056)
(6,585,123)
(6,326,725)
Finance costs paid

Net cash used in nancing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rate changes
Cash and cash equivalents at the end of the year
19
1,534,951
3,934,224
13,934,076
9,971,647
(18,779)
28,205
15,450,248
13,934,076
The signicant accounting policies adopted in the preparation of these consolidated nancial statements are set out below.
Basis of preparation
The consolidated nancial statements of the Group have been prepared in accordance with International Financial Reporting
Standards (IFRS) applicable to companies reporting under IFRS. The preparation of nancial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of
applying the Groups accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are signicant to the consolidated nancial statements are disclosed in note 3. The consolidated
nancial statements are prepared under the historical cost convention except for the revaluation of certain nancial instruments
and in accordance with the accounting policies set out herein.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether the price is directly observable or estimated using another valuation
technique.
The consolidated nancial statements are presented in UAE Dirhams (AED) which is the Corporation's functional and
presentational currency, rounded to the nearest thousand except where otherwise indicated.
62
Annual Report 2013
Etisalat
63
Financials
2. Signicant accounting policies (continued)
New and amended standards adopted by the Group
New and amended standards in issue but not yet effective
The following standards have been adopted by the Group for the rst time for the nancial year beginning on or after
1 January 2013 and have a material impact on the Group:
At the date of the consolidated nancial statements, the following Standards, Amendments and Interpretations have not
been effective but have not been early adopted:
Amendments to IAS 1 Presentation of Financial Statements
IFRS 9 Financial Instruments (as amended in 2010)
The amendments require items of other comprehensive income to be grouped into two categories in the other
comprehensive income section: (a) items that will not be reclassied subsequently to prot or loss and (b) items that may
be reclassied subsequently to prot or loss when specic conditions are met. The amendments have been applied
retrospectively, and hence the presentation of items of other comprehensive income has been modied to reect the
changes. Other than the above mentioned presentation changes, the application of the amendments to IAS 1 does not result
in any impact on prot or loss, other comprehensive income and total comprehensive income.
Changes in accounting policies due to revision in IAS 19
The amendments to IAS 19 change the accounting for dened benet plans and termination benets. The most signicant
changes relate to the accounting changes in dened benet obligations and plan assets. The amendments require the
recognition of changes in dened benet obligations and in fair value of plan assets when they occur, and hence eliminate
the corridor approach permitted under the previous version of IAS 19 and accelerate the recognition of past service costs.
The amendments require all actuarial gains and losses to be recognised immediately through other comprehensive income
in order for the net pension asset or liability recognised in the condensed consolidated statement of nancial position to
reect the full value of the decit or surplus.
Accordingly, a retrospective adjustment in provision for end of service benets amounting to AED 469 million and deferred
tax amounting to AED 164 million has been made in the consolidated nancial statements.
The following revised IFRSs have been adopted in these consolidated nancial statements. The application of these revised
IFRSs has not had any material impact on the amounts reported for the current and prior periods but may affect the
accounting for future transactions or arrangements.
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards relating to accounting for
government loans at below market interest rate
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
Amendments to IFRS 7 Financial Instruments: Disclosures relating to offsetting of Financial Assets and Financial
Liabilities
Amendments to IAS 16 Property, Plant and Equipment - servicing equipment
IAS 27 (as revised in 2011) Separate Financial Statements
IAS 28 (as revised in 2011) Investment in Associates and Joint Ventures
Improvements to IFRSs issued in 2011 and 2012 Cycle covering amendments to IFRS 1, IAS 1, IAS 16, IAS 32
and IAS 34
Amendments to IAS 32 Financial Instruments: Presentation relating to offsetting nancial

assets and liabilities
Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in
Other Entities and IAS 27 Separate Financial Statements relating to investment entities and
exemption of consolidation of particular subsidiaries
Amendment to IFRS 7 Financial Instruments: Disclosures relating to transition to IFRS 9 (or
otherwise when IFRS 9 is rst applied)
IFRS 14 Regulatory deferral accounts
Effective date
Not earlier than
1 January 2017
1 January 2014
1 January 2014
When IFRS 9 is
rst applied
1 January 2016
Amendments to IAS 36 Impairment of Assets relating to recoverable amount disclosures for

non-nancial assets
Amendments to IAS 39 Financial instruments Recognition and Measurement amendments for
novations of derivatives and continuation of hedge accounting
IFRIC 21 Levies Guidance on when to recognize a levy imposed by a government
Annual Improvements 2010-2012 Cycle, IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16 and 38 and IAS 24
1 January 2014
1 January 2014
1 January 2014
Annual Improvements 2011-2013 Cycle, IFRS 1, IFRS 3, IFRS 13 and IAS 40
1 January 2014
Amendments to IAS 19 Dened Benet Plans: Employee Contributions
1 January 2014
1 January 2014
Management anticipates that the application of the above Standards and Interpretations in future periods will have no
material impact on the consolidated nancial statements of the Group in the period of initial application.
Basis of consolidation
These consolidated nancial statements incorporate the nancial statements of the Corporation and entities controlled by
the Corporation. Control is achieved when the Group has:
has power over the investee;
is exposed , or has rights, to variable returns from its involvement;
has the ability to use its power to affect its returns.

The existence and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Group has the power to control another entity.
Non-controlling interests in the net assets of consolidated subsidiaries are identied separately from the Groups equity
therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination
and the non-controlling interests share of changes in equity since the date of the business combination. Total
comprehensive income within subsidiaries is attributed to the Group and to the non-controlling interest even if this results
in non-controlling interests having a decit balance.
Subsidiaries are consolidated from the date on which effective control is transferred to the Group and are excluded from
consolidation from the date that control ceases.
Intercompany transactions, balances and any unrealised gains/losses between Group entities have been eliminated in the
consolidated nancial statements.
Where necessary, adjustments are made to the nancial statements of subsidiaries to bring the accounting policies used in
line with those used by the Group.
64
Annual Report 2013
Etisalat
65
Financials

Revenue
Business combinations
The acquisition of subsidiaries are accounted for using the purchase method. The cost of an acquisition is measured as the
aggregate of the fair value, at the date of exchange, of the assets given, equity instruments issued and liabilities incurred
or assumed. The acquirees identiable assets and liabilities that meet the conditions for recognition under IFRS 3 Business
Combinations, are recognised at their fair values at the acquisition date. Acquisition-related costs are recognised in the
consolidated statement of prot or loss as incurred.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the
business combination over the Groups interest in the net fair value of the identiable assets, liabilities and contingent
liabilities recognised. If, after reassessment, the Groups interest in the net fair value of the acquirees identiable assets
and liabilities exceeds the cost of the business combination, the excess is recognised immediately in the consolidated
statement of prot or loss.
The non-controlling interest in the acquiree is initially measured at the minoritys proportion of the net fair value of the
assets, liabilities and contingent liabilities recognised.
Step acquisition
If the business combination is achieved in stages, the acquisition date carrying value of the acquirers previously held
equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognised in the consolidated statement of prot or loss.
Associates and joint ventures
A joint venture is a joint arrangement whereby the Group has joint control of the arrangement and has corresponding rights
to the net assets of the arrangement. Associates are those companies over which Group exercises signicant inuence but
it does not control those companies. Investments in associates and joint ventures are accounted for using the equity
method of accounting. Investments in associates and joint ventures are carried in the consolidated statement of nancial
position at cost as adjusted by post-acquisition changes in the Groups share of the net assets of the associates and joint
ventures less any impairment in the value of individual investments. Losses of the associates and joint ventures in excess
of the Groups interest are not recognised unless the Group has incurred legal or constructive obligations. The carrying
values of investments in associates and joint ventures are reviewed on a regular basis and if an impairment in the value
has occurred, it is written off in the period in which those circumstances are identied.
Any excess of the cost of acquisition over the Groups share of the fair values of the identiable net assets of the
associates at the date of acquisition is recognised as goodwill and included as part of the cost of investment. Any
deciency of the cost of acquisition below the Groups share of the fair values of the identiable net assets of the
associates at the date of acquisition is credited to the consolidated statement of prot or loss in the year of acquisition.
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for
telecommunication products and services provided in the normal course of business. Revenue is recognised, net of sales
taxes, discounts and rebates, when it is probable that the economic benets associated with a transaction will ow to the
Group and the amount of revenue and associated cost can be measured reliably. Revenue from telecommunication services
comprises amounts charged to customers in respect of monthly access charges, airtime usage, messaging, the provision of
other mobile telecommunications services, including data services and information provision and fees for connecting users
of other xed line and mobile networks to the Groups network.
Access charges and airtime used by contract customers are invoiced and recorded as part of a periodic billing cycle and
recognised as revenue over the related access period, with unbilled revenue resulting from services already provided from
the billing cycle date to the end of each period accrued and unearned revenue from services provided in periods after each
accounting period deferred. Revenue from the sale of prepaid credit is recognised on the actual utilisation of the prepaid
credit and is deferred as deferred income until such time as the customer uses the airtime, or the credit expires.
Revenue from data services and information provision is recognised when the Group has performed the related service and,
depending on the nature of the service, is recognised either at the gross amount billed to the customer or the amount
receivable by the Group as commission for facilitating the service.
Incentives are provided to customers in various forms and are usually offered on signing a new contract or as part of a
promotional offering. Where such incentives are provided on connection of a new customer or the upgrade of an existing
customer, revenue representing the fair value of the incentive, relative to other deliverables provided to the customer as
part of the same arrangement, is deferred and recognised in line with the Groups performance of its obligations relating to
the incentive.
In revenue arrangements including more than one deliverable that have value to a customer on stand alone basis, the
arrangement consideration is allocated to each deliverable based on the relative fair value of the individual elements. The
Group generally determines the fair value of individual elements based on prices at which the deliverable is regularly sold
on a standalone basis.
Contract revenue is recognised under the percentage of completion method. Prot on contracts is recognised only when the
outcome of the contracts can be reliably estimated. Provision is made for foreseeable losses estimated to complete
contracts.
Revenue from interconnection of voice and data trafc with other telecommunications operators is recognised at the time
the services are performed based on the actual recorded trafc.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the nancial
assets to that assets net carrying amount.
The Groups share of associates and joint ventures results is based on the most recent nancial statements or interim
nancial statements drawn up to the Groups reporting date. Accounting policies of associates and joint ventures have been
adjusted, where necessary, to ensure consistency with the policies adopted by the Group.
Prots and losses resulting from upstream and downstream transactions between the Group (including its consolidated
subsidiaries) and its associate or joint ventures are recognised in the Groups nancial statements only to the extent of
unrelated groups interests in the associates or joint ventures. Losses may provide evidence of an impairment of the asset
transferred, in which case appropriate provision is made for impairment.
Dilution gains and losses arising on deemed disposal of investments in associates and joint ventures are recognised in the
consolidated statement of prot or loss.
66
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67
Financials

Leasing
iii) Foreign exchange differences
Leases are classied as nance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classied as operating leases.
Exchange differences are recognised in the consolidated statement of prot or loss in the period in which they arise except
for exchange differences that relate to assets under construction for future productive use. These are included in the cost
of those assets when they are regarded as an adjustment to interest costs on foreign currency borrowings. Exchange
differences on transactions entered into to hedge certain foreign currency risks; and exchange differences on monetary
items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur, which
form part of the net investment in a foreign operation are recognised in the foreign currency translation reserve and
recognised in the consolidated statement of prot or loss on disposal of the net investment.
i) The Group as lessor

Amounts due from lessees under nance leases are recorded as receivables at the amount of the Groups net investment in
the leases. Finance lease income is allocated to accounting periods so as to reect a constant periodic rate of return on the
Groups net investment outstanding in respect of the leases.
Revenues from the sale of transmission capacity on terrestrial and submarine cables are recognised on a straight-line basis
over the life of the contract. Rental income from operating leases is recognised on a straight-line basis over the term of the
relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised on a straight-line basis over the lease term.
ii) The Group as lessee
Rentals payable under operating leases are charged to the consolidated statement of prot or loss on a straight-line basis
over the term of the relevant lease. Benets received and receivable as an incentive to enter into an operating lease are
also spread on a straight-line basis over the lease term.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specic borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the consolidated statement of prot or loss in the period in which they are
incurred.
Foreign currencies
Government grants
i) Functional currencies
Government grants relating to non-monetary assets are recognised at nominal value. Grants that compensate the Group for
expenses are recognised in the consolidated statement of prot or loss on a systematic basis in the same period in which
the expenses are recognised. Grants that compensate the Group for the cost of an asset are recognised in the consolidated
statement of prot or loss on a systematic basis over the expected useful life of the related asset upon capitalisation.
The individual nancial statements of each of the Groups subsidiaries, associates and joint ventures are presented in the
currency of the primary economic environment in which they operate (its functional currency). For the purpose of the
consolidated nancial statements, the results, nancial position and cash ows of each Group company are expressed in
UAE Dirhams, which is the functional currency of the Corporation, and the presentation currency of the consolidated
nancial statements.
In preparing the nancial statements of the individual companies, transactions in currencies other than the entitys
functional currency are recorded at exchange rates prevailing at the dates of the transactions. At each year end, monetary
assets and liabilities that are denominated in foreign currencies are retranslated into the entitys functional currency at
rates prevailing at the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies
are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated except that the recoverable amount is
translated at the date of revaluation if a non- monetory item is impaired.
ii) Consolidation
On consolidation, the assets and liabilities of the Groups foreign operations are translated into UAE Dirhams at exchange
rates prevailing on the date of the consolidated statement of nancial position. Goodwill and fair value adjustments arising
on the acquisition of a foreign entity are also translated at exchange rates prevailing on the reporting date. Income and
expense items are translated at the average exchange rates for the period unless exchange rates uctuate signicantly
during that period, in which case the exchange rates at the date of transactions are used. Exchange differences are
recognised in other comprehensive income and are presented in the translation reserve in equity. On disposal of overseas
subsidiaries or when signicant inuence is lost, the cumulative translation differences are recognised as income or
expense in the period in which they are disposed of.
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Annual Report 2013
End of service benets

Payments to dened contribution schemes are charged as an expense as they fall due. Payments made to state -managed
pension schemes are dealt with as payments to dened contribution schemes where the Groups obligations under the
schemes are equivalent to those arising in a dened contribution scheme.
Provision for employees end of service benets for non-UAE nationals is made in accordance with the Projected Unit Cost
method as per IAS 19 Employee Benets taking into consideration the UAE Labour Laws. The provision is recognised based
on the present value of the dened benet obligations.
The present value of the dened benet obligations is calculated using assumptions on the average annual rate of increase
in salaries, average period of employment of non-UAE nationals and an appropriate discount rate. The assumptions used
are calculated on a consistent basis for each period and reect managements best estimate. The discount rates are set in
line with the best available estimate of market yields currently available at the reporting date with reference to high quality
corporate bonds or other basis, if applicable.
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Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable prot for the period. Taxable prot differs from prot as reported in the
consolidated statement of prot or loss because it excludes items of income or expense that are taxable or deductible in
other periods and it further excludes items that are never taxable or deductible. The Groups liability for current tax is
calculated using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and
liabilities in the nancial statements and the corresponding tax bases used in the computation of taxable prot, and is
accounted for using the liability method.
Deferred tax is calculated using relevant tax rates and laws that have been enacted or substantially enacted by the
reporting date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is
settled.
Deferred tax is charged or credited in the consolidated statement of prot or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognise d
to the extent that it is probable that sufcient taxable prots will be available in the future against which deductible
temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufcient taxable prots will be available to allow all or part of the asset to be recovered. Such assets and
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither taxable
prot nor the accounting prot.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets agains t
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Other than land (which is not depreciated), the cost of property, plant and equipment is depreciated on a straight line basis
over the estimated useful lives of the assets as follows:
Buildings:
Permanent the lesser of 20 30 years and the period of the land lease.
Temporary the lesser of 4 10 years and the period of the land lease.
Plant and equipment:
Submarine bre optic cables
coaxial cables
Cable ships
Coaxial and bre optic cables
Line plant
Exchanges
Switches
Radios/towers
Earth stations/VSAT
Multiplex equipment
Power plant
Subscribers apparatus
General plant
Years
20
10
15
15 25
15 25
5 10
15
10 15
5 10
10
57
35
27
Other assets:
Motor vehicles
Computers
Furniture and ttings
5
5
4-6
The assets residual values and useful lives are reviewed and adjusted, if appropriate, at each reporting date.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in the consolidated statement of profit or loss.
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is carried at cost less
accumulated depreciation and impairment loss.
Investment properties are depreciated on a straight-line basis over the lesser of 20 years and the period of the lease.
Property, plant and equipment are only measured at cost, less accumulated depreciation and any impairment. Cost
comprises the cost of equipment and materials, including freight and insurance, charges from contractors for installation and
building works, direct labour costs, capitalised borrowing costs and an estimate of the costs of dismantling and removing
the equipment and restoring the site on which it is located.
Intangible assets
Assets in the course of construction are carried at cost, less any impairment. Cost includes professional fees and, for
qualifying assets, borrowing costs capitalised in accordance with the Groups accounting policy. Depreciation of these assets
commences when the assets are ready for their intended use.
(i) Goodwill
Goodwill arising on consolidation represents the excess of the cost of an acquisition over the fair value of the Groups share
of net identiable assets of the acquired subsidiary at the date of acquisition. Goodwill is initially recognised as an asset at
cost and is subsequently measured at cost less any accumulated impairment losses.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benets associated with the item will ow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance costs are charged to consolidated statement of prot or loss during
the period in which they are incurred.
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For the purpose of impairment testing, goodwill is allocated to each of the Groups cash-generating units (CGUs) expected to
benet from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment
annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the
cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated rst to reduce the
carrying amount of any goodwill allocated to the unit and then to the other non-nancial assets of the unit pro-rata on the
basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a
subsequent period.
On disposal of an associate, joint venture, or a subsidiary or where Group ceases to exercise control, the attributable
amount of goodwill is included in the determination of the prot or loss on disposal.
(II) Licenses
Acquired telecommunication licenses are initially recorded
Licenses are amortised on a straight line basis over their
available for use. The estimated useful lives range between
the unexpired license period, the conditions for license
technologies.
at cost or, if part of a business combination, at fair value.

estimated useful lives from when the related networks are
10 and 25 years and are determined primarily by reference to
renewal and whether licenses are dependent on specic
(III) Internally-generated intangible assets

An internally-generated intangible asset arising from the Groups IT development is recognised at cost only if all of the
following conditions are met:
an asset is created that can be identied (such as software and new processes);
it is probable that the asset created will generate future economic benets; and
the development cost of the asset can be measured reliably.

Internally-generated intangible assets are amortised on a straight-line basis over their useful lives of 3-10 years. Where no
internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the
period in which it is incurred.
(IV) Indefeasible Rights of Use (IRU)
IRUs correspond to the right to use a portion of the capacity of a terrestrial or submarine transmission cable granted for a
xed period. IRUs are recognised at cost as an asset when the Group has the specic indefeasible right to use an identie d
portion of the underlying asset, generally optical bres or dedicated wavelength bandwidth, and the duration of the right is
for the major part of the underlying assets economic life. They are amortised on a straight line basis over the shorter of the
expected period of use and the life of the contract which ranges between 10 to 20 years.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an
expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is
treated as a revaluation decrease.
Non-nancial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment
at each reporting date. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a
revaluation increase.
Inventory
Inventory is measured at the lower of cost and net realisable value. Cost comprises direct materials and where applicable,
direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and
condition. Allowance is made, where appropriate, for deterioration and obsolescence. Cost is determined in accordance with
the weighted average cost method. Net realisable value represents the estimated selling price less all estimated costs of
completion and costs to be incurred in marketing, selling and distribution.
Financial instruments
Financial assets and nancial liabilities are recognised in the consolidated statement of nancial position when the Group
becomes a party to the contractual provisions of the instrument.
i) Fair value
The fair values of nancial assets and nancial liabilities are determined as follows:
the fair value of nancial assets and nancial liabilities with standard terms and conditions and traded on active liquid
markets are determined with reference to quoted market prices; and
the fair value of other nancial assets and nancial liabilities are determined in accordance with generally a ccepted
pricing models based on discounted cash ow analysis using prices from observable current market transactions.
(V) Other intangible assets

Customer relationships and trade names are recognised on acquisition at fair values. They are amortised on a straight line
basis over their estimated useful lives. The useful lives of customer relationships range from 5-13 years and trade names
have a useful life of 15 years.
Impairment of tangible and intangible assets excluding goodwill
The Group reviews the carrying amounts of its tangible and intangible assets whenever there is any indication that those
assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of any impairment loss. Where the asset does not generate cash ows that are independent
from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indenite useful life (including goodwill) is tested for impairment annually.
Recoverable amount is the higher of an assets fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash ows are discounted to their present value using a pre-tax discount rate that reects current market
assessments of the time value of money and the risks specic to the asset for which the estimates of future cash ows
have not been adjusted.
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Annual Report 2013
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Financials
ii) Financial assets
vi) Loans and receivables
All nancial assets are recognised and derecognised on trade date where the purchase or sale of a nancial asset is under a
contract whose terms require delivery of the investment within the timeframe established by the market concerned, and
are initially measured at fair value, plus transaction costs, except for those nancial assets classied as at fair value
through prot or loss, which are initially measured at fair value.
Trade receivables, loans and other receivables that have xed or determinable payments that are not quoted in an active
market are classied as loans and receivables. Loans and receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method less impairment. Interest income is recognised by applying
the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Financial assets are classied into the following specied categories: held-to-maturity investments, available-for-sale
nancial assets and loans and receivables. The classication depends on the nature and purpose of the nancial assets
and is determined at the time of initial recognition.
Appropriate allowances for estimated irrecoverable amounts are recognised in the consolidated statement of prot or loss
where there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference
between the assets carrying amount and the present value of estimated future cash ows discounted at the effective
interest rate computed at initial recognition.
iii) Effective interest method

The effective interest method is a method of calculating the amortised cost of a nancial asset and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts
(including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the nancial asset, or, where appropriate, a shorter period.
The allowance for doubtful debts reects estimates of losses arising from the failure or inability of t he Groups customers to
make required payments. The estimates are based on the ageing of customers accounts and the Groups historical write-off
experience.
vii) Cash and cash equivalents
Income is recognised on an effective interest rate basis for debt instruments that are held-to-maturity, are available-forsale, or are loans and receivables.
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that
are readily convertible to a known amount of cash and are subject to an insignicant risk of changes in value.
iv) Held-to-maturity investments
viii) Financial liabilities
Bonds and Sukuk bonds with xed or determinable payments and xed maturity dates that the Group has the positive
intent and ability to hold to maturity are classied as held-to-maturity investments. Held-to-maturity investments are
recorded at amortised cost using the effective interest method less any impairment, with revenue recognised on an
effective yield basis. The Group considers the credit risk of counterparties in its assessment of whether such nancial
instruments are impaired.
Financial liabilities are classied as either nancial liabilities at fair value through prot or loss (FVTPL) or other nancial
liabilities.
v) Available-for-sale nancial assets (AFS)

Listed securities held by the Group that are quoted in an active market are classied as being AFS and are stated at fair
value. Gains and losses arising from changes in fair value are recognised directly in equity in the investment revaluation
reserve with the exception of impairment losses, interest calculated using the effective interest method and foreign
exchange gains and losses on monetary assets, which are recognised directly in prot or loss. Where the investment is
disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the investments
revaluation reserve is included in the consolidated statement of prot or loss.
Dividends on AFS equity instruments are recognised in the consolidated statement of prot or loss when the Groups right
to receive the dividends is established.
The fair value of AFS monetary assets denominated in a foreign currency is determined in that foreign currency and
translated at the exchange rate prevailing at the reporting date. The foreign exchange gains/losses that are recognised in
the consolidated statement of prot or loss are determined based on the amortised cost of the monetary asset. Other
foreign exchange gains/losses are recognised in the consolidated statement of changes in equity.
The Group assesses at each reporting date whether there is objective evidence that AFS assets are impaired. In the case of
equity securities, a signicant or prolonged decline in the fair value of the security below its cost is considered as an
indicator that the securities are impaired. Impairment losses recognised in the consolidated statemet of prot or loss on
equity instruments are not reversed through the consolidated statement of prot or loss.
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Annual Report 2013
ix) Financial guarantee contract liabilities

Financial guarantee contract liabilities are measured initially at their fair values and are subsequently measured at the
higher of:
the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets; and
the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the
revenue recognition policies set out above.
x) Financial liabilities at FVTPL
Financial liabilities are classied as at FVTPL where the nancial liability is either held for trading or it is designated as
such. A nancial liability is classied as held for trading if it has been incurred principally for the purpose of disposal in the
near future or it is a derivative that is not designated and effective as a hedging instrument. Financial liabilities at FVTPL
are stated at fair value, with any resultant gain or loss recognised in the consolidated statement of prot or loss.
xi) Other nancial liabilities
Other nancial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other nancial
liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense
recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a
nancial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the nancial liability, or, where appropriate,
a shorter period.
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Financials

xii) Derecognition of nancial liabilities
xvii) Derecognition of nancial assets
The Group derecognises nancial liabilities when, and only when, the Groups obligations are discharged, cancelled or they
expire.
The Group derecognises a nancial asset only when the contractual rights to the cash ows from the asset expire; or it
transfers the nancial asset or substantially all the risk and rewards of ownership to another entity. If the Group neither
transfer nor retains substantially all the risks and reward of ownership and continues to control the transferred asset, the
Group recognises its retained interest in the asset and associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred nancial asset, the Group continues to
recognise the nancial asset and also recognises a collateralised borrowing for the proceeds received.
xiii) Derivative nancial instruments

The Group enters into a variety of derivative nancial instruments to manage its exposure to interest rate and foreign
exchange rate risk, including forward foreign exchange contracts, interest rate swaps and cross currency swaps.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. A derivative with a positive fair value is recognised as a nancial
asset whereas a derivative with a negative fair value is recognised as a nancial liability. The Group does not currently
designate any nancial instruments as hedging instruments, and accordingly all resulting gains or losses arising from the
remeasurement of derivatives are recognised in the consolidated statement of prot or loss immediately.
xiv) Embedded derivatives
Derivatives embedded in other nancial instruments or other host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair
value with changes in fair value recognised in the consolidated statement of prot or loss.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the
Group will be required to settle that obligation. Provisions are measured at the directors best estimate of the expenditure
required to settle the obligation at the reporting date, and are discounted to present value where the effect is material.
Transactions with non-controlling interests
The Group applies a policy of treating transactions with non-controlling interest holders as transactions with parties
external to the Group. Disposals to non-controlling interest holders result in gains and losses for the Group and are recorded
in the consolidated statement of prot or loss. Purchases from non-controlling interest holders result in goodwill, being the
difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the
subsidiary.
xv) Hedge accounting

The Group may designate certain hedging instruments, which include derivatives, embedded derivatives and nonderivatives in respect of foreign exchange risk, as either fair value hedges, cash ow hedges, or hedges of net investments
in foreign operations. Hedges of foreign exchange risk on rm commitments are accounted for as cash ow hedges where
appropriate criteria are met.
At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the
hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument
is highly effective in offsetting changes in fair values or cash ows of the hedged item.
xvi) Put option arrangements
Dividends
Dividend distributions to the Groups shareholders are recognised as a liability in the consolidated na ncial statements in
the period in which the dividends are approved.
3. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Groups accounting policies, which are described in Note 2, the directors are required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The potential cash payments related to put options issued by the Group over the equity of subsidiary companies are
accounted for as nancial liabilities when such options may only be settled other than by exchange of a xed amount of
cash or another nancial asset for a xed number of shares in the subsidiary.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
The amount that may become payable under the option on exercise is initially recognised at fair value within borrowings
with a corresponding charge directly to equity. The charge to equity is recognised separately as written put options over
non-controlling interests, adjacent to non-controlling interests in the net assets of consolidated subsidiaries. For options
that involve a xed amount of cash for a xed number of shares in the subsidiary, the Group recognises the cost of writing
such put options, determined as the excess of the fair value of the option over any consideration received, as a nancing
cost.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that
have a signicant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
nancial year, are disclosed below.
Such options are subsequently measured at amortised cost, using the effective interest rate method, in order to accrete the
liability up to the amount payable under the option at the date at which it rst becomes exercisable. The charge arising is
recorded as a nancing cost. In the event that the option expires unexercised, the liability is derecognised with a
corresponding adjustment to equity.
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Annual Report 2013
i) Fair value of other intangible assets

On the acquisition of mobile network operators, the identiable intangible assets may include licenses, customer bases and
brands. The fair value of these assets is determined by discounting estimated future net cash ows generated by the
asset, where no active market for the assets exist. The use of different assumptions for the expectations of future cash
ows and the discount rate would change the valuation of the intangible assets.
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Financials
3. Critical accounting judgements and key sources of estimation uncertainty (continued)
3. Critical accounting judgements and key sources of estimation uncertainty (continued)

The relative size of the Groups intangible assets, excluding goodwill, makes the judgements surrounding the estimated
useful lives critical to the Groups nancial position and performance.
The useful lives used to amortise intangible assets relate to the future performance of the assets acquired and
managements judgement of the period over which economic benet will be derived from the asset.
ii) Business combinations
The recognition of business combinations requires the purchase price of acquisitions to be allocated to the identiable
assets acquired and the liabilities assumed measured at their acquisition-date fair values. The Group makes judgments and
estimates in relation to the fair value determination of the assets acquired and liabilities assumed and allocation of the
purchase price. If any unallocated portion is positive it is recognised as goodwill and if negative, it is recognised in the
statement of prot or loss.
iii) Impairment of goodwill and associates
Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash-generating unit to which
the goodwill has been allocated. The value-in-use calculation for goodwill and associates requires the Group to calculate the
net present value of the future cash ows for which certain assumptions are required, including managements
expectations of:
long term growth rates in cash ows;
timing and quantum of future capital expenditure; and
the selection of discount rates to reect the risks involved.

The key assumptions used and sensitivities are detailed on Note 9 of the consolidated nancial statements. A change in the
key assumptions or forecasts might result in an impairment of goodwill and investment in associates.
vii) Classication of associates, joint ventures and subsidiaries

The appropriate classication of certain investments as subsidiaries, associates and joint ventures requires signicant
analysis and management judgement as to whether the Group exercises control, signicant inuence or joint control over
these investments. This may involve consideration of a number of factors, including ownership and voting rights, the extent
of Board representation, contractual arrangements and indicators of de fact control.
Changes to these indicators and managements assessment of the power to control or inuence may have a material impact
on the classication of such investments and the Groups consolidated nancial position, revenue and results.
viii) Federal royalty
The computation of Federal Royalty in accordance with the Cabinet of Ministers of UAE decision No. 320/15/23 of 2012
and guidelines issued by the UAE Ministry of Finance (the MoF) dated 21 January 2013 and subsequent clarication
letters dated 24 April 2013, 30 October 2013 and 29 January 2014 requires a number of calculations. In performing these
calculations, management have made certain critical judgements, interpretations and assumptions. These mainly relate to
the segregation of items between regulated and other activities and items which the Corporation judges as not subject to
Federal royalty or which may be set off against prots which are subject to Federal royalty.
The calculation basis and methodology to be applied for future periods is still subject to ongoing discussion and may
change.
ix) Regulatory expenses
The Corporation is required to pay the UAE Telecommunication Regulatory Authority (TRA) 1% of its revenues annually as
regulatory expenses towards ICT contributions. In the computation of the regulatory expenses, the Corporation has made
certain critical judgements and assumptions relating mainly to the interpretation of revenues, which the Corporation
contends to include UAE regulated revenues only and not revenues in other UAE entities as well as overseas subsidiaries.
iv) Impairment of intangibles

Impairment testing is an area involving management judgement, requiring assessment as to whether the carrying value of
assets can be supported by the net present value of future cash ows derived from such assets using cash ow projections
which have been discounted at an appropriate rate. In calculating the net present value of the future cash ows, certain
assumptions are required to be made in respect of highly uncertain matters including managements expectations of:
long term growth rates in cash ows;
timing and quantum of future capital expenditure; and
the selection of discount rates to reect the risks involved.

v) Property, plant and equipment
Property, plant and equipment represents a signicant proportion of the total assets of the Group. Therefore, the estimates
and assumptions made to determine their carrying value and related depreciation are critical to the Groups nancial
position and performance. The charge in respect of periodic depreciation is derived after determining an estimate of an
assets expected useful life and the expected residual value at the end of its life. Increasing/decreasing an assets expected
life or its residual value would result in a reduced/increased depreciation charge in the consolidated statement of prot or
loss.
vi) Impairment of trade receivables
The Group determines the impairment of trade receivables based on their ageing when objective evidence indicates that
one or more events have had a negative effect on the estimated future cash ows of the trade receivables. Management
exercises signicant judgments in assessing the impact of adverse indicators and events on recoverability of trade
receivables.
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4. Segmental information
Information regarding the Groups operating segments is set out below in accordance with IFRS 8 Operating Segments. IFRS
8 requires operating segments to be identied on the basis of internal reports that are regularly reviewed by the Groups
chief operating decision maker and used to allocate resources to the segments and to assess their performance.

Notes to the consolidated nancial statements for the year ended 31 December 2013
4. Segmental information
UAE
AED000
Egypt
AED000
International
Pakistan
AED000
Others
AED000
25,448,349
4,715,665
4,425,863
507,120
25,855
335,065
25,955,469
4,741,520
11,543,769
581,998
Eliminations
AED000
Consolidated
AED000
4,263,361
38,853,238
110,581
(978,621)
4,760,928
4,373,942
(978,621)
38,853,238
697,448
1,709,804
31 December 2013
Revenue
a) Products and services from which reportable segments derive their revenues
The Group is engaged in a single line of business, being the supply of telecommunications services and related products.
The majority of the Groups revenues, prots and assets relate to its operations in the UAE. Outside of the UAE, the Group
operates through its subsidiaries and associates in sixteen countries which are divided in to the following operating
segments:
Pakistan
Egypt
International - others
Revenue is attributed to an operating segment based on the location of the Group company reporting the revenue. Intersegment sales are charged at arms length prices.
External sales
Inter-segment sales
Total revenue
Segment result
(6,115,016)
Finance income
440,199
Finance costs
Segment results represent operating prot earned by each segment without allocation of nance income, nance costs and
federal royalty. This is the measure reported to the Groups Board of Directors (Board of Directors) for the purposes of
resource allocation and assessment of segment performance.
The Groups share of results from associates and joint ventures has been allocated to the segments based on the
geographical location of the operations of the associate and joint venture investments. The allocation is in line with how
results from investments in associates and joint ventures are reported to the Board of Directors.
c) Segment assets
For the purposes of monitoring segment performance and allocating resources between segments, the Board of Directors
monitors the tangible, intangible and nancial assets attributable to each segment. All assets are allocated to reportable
segments. Assets used jointly by reportable segments are allocated on the basis of the revenues earned by individual
reportable segments.
The segment information has been provided in the following page.
Taxation
Total assets
Additions to non-current assets
7,750,948
58,557,080
13,766,144
18,117,964
15,352,603
(20,078,257)
1,889,102
992,416
967,020
759,010
85,715,534
4,607,548
2,063,453
1,228,969
1,391,760
1,649,704
6,333,886
23,598,041
5,050,125
4,298,134
32,946,300
31 December 2012
Revenue
External sales
Inter-segment sales
Total revenue
Segment result
240,271
25,060
96,116
(361,447)
23,838,312
5,075,185
4,394,250
(361,447)
32,946,300
9,385,496
1,026,484
8,441
1,430,176
11,850,597
Federal royalty
(6,451,252)
Gain on partial disposal of associate
860,138
Finance income
721,111
Finance costs
(322,938)
Prot before tax
6,657,656
Taxation
(85,910)
Prot for the year

Total assets
6,571,746
57,848,198
14,323,902
19,497,968
13,773,276
(20,837,198)
84,606,146
Depreciation and amortisation
1,723,105
907,709
753,925
3,384,739
Additions to non-current assets
1,939,353
1,174,053
1,050,942
4,164,348
2013
AED million
22,758
3,197
25,955
2012
AED million
22,010
1,828
23,838
UAE Revenue - TRA regulated

UAE Revenue - Non-regulated
Annual Report 2013
(648,647)
Prot for the year
UAE Segment revenue breakup:
80
(458,607)
8,399,595
Prot before tax
Depreciation and amortisation
b) Segment revenues and results
14,533,019
Federal royalty
Etisalat
25
81
Financials
7. Finance costs
5. Operating expenses and federal royalty

a) Operating expenses (before federal royalty)
2013
AED000
2012
AED000
Direct cost of sales
8,730,519
7,165,626
Staff costs
5,149,391
4,475,420
Depreciation (Notes 10,11)
3,798,455
2,670,013
Network and other related costs
2,187,302
1,329,038
General and administrative expenses
1,346,749
1,224,535
Marketing expenses
906,752
633,077
Amortisation (Note 9)
809,093
714,726
Regulatory expenses
674,042
537,879
Operating lease rentals
258,458
248,165
Foreign exchange losses
140,873
57,669
Other operating expenses

Operating expenses (before federal royalty)
698,750
477,345
24,700,384
19,533,493
The comparative gures for 2012 have been reclassied to conform with the current year's presentation of operating expenses (before
federal royalty), so that they appropriately reect the nature of transactions. This reclassication does not have an impact on the prot or
the statement of nancial position in the current or prior year.
2013
AED000
312,905
2012
AED000
315,706
Interest on other borrowings
97,790
4,905
Unwinding of discount
47,912
2,327
458,607
322,938
Interest on bank overdrafts, loans and other nancial liabilities
Total borrowing costs
482,933
348,590
Less: amounts included in the cost of qualifying assets (Note 10)
(24,326)
(25,652)
458,607
322,938
All interest charges are generated on the Groups nancial liabilities measured at amortised cost. Borrowing costs included in the cost of
qualifying assets during the year arose on specic and general borrowing pools. Borrowing costs attributable to general borrowing pools
are calculated by applying a capitalisation rate of 10.0% (2012: 9.4%) to expenditure on such assets. Borrowing costs have been capitalised
in relation to loans by certain of the Groups subsidiaries.
8. Taxation
Current tax expense

Deferred tax expense / (credit)
b) Federal Royalty
In accordance with the Cabinet decision No. 558/1 for the year 1991, the Corporation was required to pay a federal royalty, equivalent to
40% of its annual net prot before such federal royalty, to the UAE Government for use of federal facilities. With effect from 1 June 1998,
Cabinet decision No. 325/28M for 1998 increased the federal royalty payable to 50%.
On 9 December 2012 the Cabinet of Ministers of UAE issued decision no. 320/15/23 of 2012 in respect of a new royalty mechanism
applicable to Etisalat.
Under the new mechanism a distinction is made between revenue earned from services regulated by Telecommunications Regulatory
Authority (TRA) and non-regulated services as well as between foreign and local prots.
2013
AED000
496,907
2012
AED000
119,554
151,740
(33,644)
648,647
85,910
a) Current tax
Corporate income tax is not levied in the UAE for telecommunication companies and accordingly the effective tax rate for the Corporation
is 0% (2012: 0%). The table below reconciles the difference between the expected tax expense of nil (2012: nil) (based on the UAE effective
tax rate) and the Groups tax charge for the year.
Prot before tax

Tax at the UAE corporation tax rate of 0% (2012: 0%)
2013
AED000
8,399,595
2012
AED000
6,657,656
Etisalat is required to pay 15% royalty fee on the UAE regulated revenues and 35% of net prot after deduction of the 15% royalty fee on
the UAE regulated revenues. In respect of foreign prot, the 35% royalty is reduced by the amount that the foreign prot has already been
subject to foreign taxes.
Effect of different tax rates of subsidiaries operating in other jurisdictions
496,907
119,554
Current tax expense for the year
496,907
119,554
Ministry of Finance have conrmed via their letter dated 29 January 2014 that the mechanism of calculating the royalty fee for the year
ended 31 December 2013 will follow the same principles that were applicable for the calculation of royalty fees for the year ended 31
December 2012.
b) Current income tax assets and liabilities
The federal royalty has been treated as an operating expense in the consolidated statement of prot or loss on the basis that the expenses
the Corporation would otherwise have had to incur for the use of the federal facilities would have been classied as operating expenses.
Interest on loans to associates

Other nance income
82
Annual Report 2013
c) Deferred tax
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when these relate to the same income tax authority. The amounts recognised in the consolidated statement of nancial
position after such offset are as follows:
6. Finance income
Interest on bank deposits and held-to-maturity investment
The current income tax assets represent refunds receivable from tax authorities and current income tax liabilities represent income
tax payable.
2013
AED000
315,416
2012
AED000
317,966
Deferred tax assets

342,278
124,783
60,867
440,199
721,111
26
2013
AED000
243,042
2012
AED000
286,607
(1,749,839)
(1,818,053)
(1,506,797)
(1,531,446)
Etisalat
83
27
Financials
8. Taxation (continued)
9. Goodwill, other intangible assets, impairment and other losses
The following represent the major deferred tax liabilities and deferred tax assets recognised by the Group and movements thereon without
taking into consideration the offsetting of balances within the same tax jurisdiction.
Deferred tax on
Accelerated tax
depreciation overseas earnings
AED000
AED000
Others
AED000
Total
AED000
At 1 January 2012
508,437
164,165
(Credit)/charge to the consolidated statement of prot or loss
(111,799)
48,369
8,215
(55,215)
Payment during the year

Consolidation of PTCL (Note 29)
Exchange differences
879,313
(11,589)
(52,952)
-
32,622
(169)
(52,952)
911,935
(11,758)
1,264,362
159,582
40,668
1,464,612
526
526
At 31 December 2012 (as previously reported)

Effect of change in accounting policy (Note 2)
Consolidation of PTCL (Note 29) - additional recognition on fair
valuation
At 31 December 2012 (as restated)
672,602
712,621
712,621
1,976,983
159,582
41,194
2,177,759
6,121
21,661
(6,223)
21,559
(53)
(53)
(173,723)
14,838
(158,885)
At 31 December 2013
1,809,381
181,243
49,756
2,040,380
At 1 January 2012
Charge/(Credit) to the consolidated statement of prot or loss
Retirement
benet
obligations
AED000
Tax losses
AED000
Others
AED000
Total
AED000
2,687
286,908
17,499
307,094
884
(15,773)
(6,682)
(21,571)
59,594
135,938
195,532
76
3,647
164,174
793
331,522
-
215
146,970
-
1,084
482,139
164,174
At 31 December 2012 (as restated)
167,821
331,522
146,970
646,313
(44,107)
(73,906)
(12,168)
(130,181)
62,913
2,407
165
65,485
(13,160)
(25,566)
(9,308)
(48,034)
At 31 December 2013
173,467
234,457
125,659
533,583
2013
AED million
1,642
2012
AED million
1,706
1,153
1,104

At 31 December 2012 (as previously reported)
(Credit)/charge to other comprehensive income
Additions
Disposals
Total unused tax losses

of which deferred tax assets recognised for
of which no deferred tax asset recognised, due to unpredictability of future taxable prot streams
of the unrecognised tax losses, losses that will expire in the next three years are
84
Annual Report 2013
Total
AED000
3,113,583
15,401,323
18,514,906
4,546,698
(151,684)
282,992
282,992
1,041,494
5,588,192
(12,543)
(12,543)
(596,598)
(748,282)
(1,192)
(92,611)
(93,803)
7,507,405
16,024,057
23,531,462
Amortisation and impairment

At 1 January 2012
1,240,690
5,123,699
6,364,389
Impairment losses
Disposals
337,130
498
714,726
714,726
337,130
130,830
130,830
(1,152)
(1,152)
(150,272)
(149,774)
(19,882)
(19,882)
At 31 December 2012
1,578,318
5,797,949
7,376,267
Carrying amount
At 31 December 2012
5,929,087
10,226,108
16,155,195
7,507,405
16,024,057
23,531,462
Deconsolidation of a subsidiary (Note 12)
Cost
At 1 January 2013
766,638
766,638
(332,498)
(944,227)
(1,276,725)
At 31 December 2013
7,174,907
15,846,468
23,021,375
1,578,318
5,797,949
7,376,267
809,093
809,093
Additions
Amortisation and impairment

At 1 January 2013
Charge for the year
43,063
43,063
1,260
(207,855)
(206,595)
At 31 December 2013
1,622,641
6,399,187
8,021,828
Carrying amount
At 31 December 2013
5,552,266
9,447,281
14,999,547
2013
AED000
2012
AED000
Impairment losses
Other intangible assets - net book values

Unused tax losses
Other intangible
assets
AED000
At 31 December 2012
Charge for the year
(Credit)/charge to other comprehensive income
Deferred tax assets
Cost
At 1 January 2012
Goodwill
AED000
Licenses
8,046,956
8,686,381
IRU
387,804
441,238
Computer software
231,933
218,613
405,005
477,905
256,700
489
602
Customer relationships
Trade names
221,206
71
602
Others
154,377
145,270
9,447,281
10,226,108
28
Etisalat
85
29
Financials
9. Goodwill, other intangible assets, impairment and other losses (continued)
9. Goodwill, other intangible assets, impairment and other losses (continued)
b) Cash generating units
The net impairment losses recognised in the consolidated statement of prot or loss in respect of the carrying amounts of
investments, goodwill, licenses and property, plant and equipment are as follows:
2013
Pakistan Telecommunication Company Limited (PTCL)
of which relating to carrying amount of investment in associate (Note 14b)
of which relating to property, plant and equipment (Note 10)
2012
AED000
AED000
16,293
2,365,953
2,365,953
16,293
Goodwill acquired in a business combination is allocated, at acquisition, to the CGUs that are expected to benet from that business
combination. The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired. The
carrying amount of goodwill (all relating to operations within the Groups International reportable segment) is allocated to the following CGUs:
Cash generating units (CGU) to which goodwill is allocated

Atlantique Telecom, S.A. (AT)
Etisalat Misr (Etisalat) S.A.E.
Canar Telecommunications Co. Limited (Canar)
459,412
of which relating to goodwill
337,130
Etisalat Lanka (Pvt) Limited (Etisalat Lanka)
of which relating to property, plant and equipment
122,282
Pakistan Telecommunication Company Limited (PTCL)
Atlantique Telecom S.A (AT)
Zanzibar Telecom Limited (Zantel)
2013
AED000
1,218,897
2012
AED000
1,256,345
27,111
29,518
44,896
44,896
206,123
206,123
4,055,239
4,392,205
5,552,266
5,929,087
71,715
of which relating to goodwill
43,063
of which relating to property, plant and equipment (Note 10)
24,327
4,325
The key assumptions for the value in use calculations are those regarding the long term forecast cash ows, discount rates and capital
expenditure.
1,286,168
Long term cash ows
of which relating to loans to related party
515,875
of which relating to available-for-sale nancial assets (quoted equity instruments) (Note 15)
264,309
of which other losses
505,984
1,374,176
2,825,365
of which relating to other nancial assets

Others
Total impairment and other losses for the year
Impairment losses were primarily driven by increased discount rates as a result of increases in ination in the operating countries and
challenging economic and political conditions, as well as negative local currency uctuation. Impairment losses of Group's investment in
available-for-sale nancial assets is triggered by a signicant decline in the fair value of the quoted investment.
The changes in the following table to assumptions used in the impairment review would, in isolation, lead to an (increase)/decrease to the
aggregate impairment loss recognised in the year ended 31 December 2013.
Sensitivity to changes in assumptions
Pre-tax adjusted
discount rate
Growth
rate
AED million
AED million
18
Atlantique Telecom S.A (AT)

increase by 2%
Decrease by 2%
86
Annual Report 2013
30
c) Key assumptions for the value in use calculations
The Group prepares cash ow forecasts derived from the most recent annual business plan approved by management for each location
for the next ve years. The business plans take into account local market considerations such as the revenues and costs associated with
future customer growth, the impact of local market competition and consideration of the local macro-economic and political trading
environment. This rate does not exceed the average long-term growth rate for the relevant markets and it ranges between 2.6% to 6.3%
(2012:0.8% to 6.8%).
Discount rates
The discount rates applied to the cash ows of each of the Groups operations are based on an internal study conducted by the
management. The study utilised market data and information from comparable listed mobile telecommunications companies and where
available and appropriate, across a specic territory. The pre-tax discount rates use a forward looking equity market risk premium and
ranges between 13.9% to 19.3% (2012: 11.7% to 17.6%).
Capital expenditure
The cash ow forecasts for capital expenditure are based on past experience and include the ongoing capital expenditure required to
continue rolling out networks in emerging markets, providing enhanced voice and data products and services, and meeting the population
coverage requirements of certain licenses of the Group. Capital expenditure includes cash outows for the purchase of property, plant and
equipment and other intangible assets.
Etisalat
87
31
Financials
10. Property, plant and equipment
10. Property, plant and equipment (continued)
Cost
At 1 January 2012
Additions
Land and
buildings
AED000
Plant and
equipment
AED000
Motor vehicles,
computer,
furniture
AED000
3,735,029
27,065,353
2,808,811
7,146,752
40,755,945
44,302
924,467
109,840
2,800,706
3,879,315
Assets under
construction
AED000
Total
AED000
4,761,744
14,890,531
267,874
756,654
20,676,803
Transfers
61,013
2,907,232
370,611
(3,338,856)
Disposals
(1,268)
(415,386)
(82,743)
(499,397)
(34,240)
(430,476)
(52,615)
26,894
(490,437)
(108,294)
(1,318,756)
(1,427,050)
8,566,580
44,833,427
3,421,778
6,073,394
62,895,179
2,206,722
15,888,329
1,987,066
59,833
20,141,950
209,268
2,027,668
429,942
Deconsolidation of Subsidiary (Note 12)
At 31 December 2012
The carrying amount of the Groups land and buildings includes a nominal amount of AED 1 (2012: AED 1) in relation to land granted to the
Group by the Government. There are no contingencies attached to this grant and as such no additional amounts have been included in the
consolidated statement of prot or loss or the consolidated statement of nancial position in relation to this.
An amount of AED 24.3 million (2012: AED 25.7 million) is included in property, plant and equipment on account of capitalisation of
borrowing costs for the year.
Borrowings are secured against property, plant and equipment with a net book value of AED 2,781 million (2012: AED 3,060 million).
Assets under construction include multiplex equipment, line plant, exchange and network equipment.
11. Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is stated at depreciated cost and included
separately under non-current assets in the consolidated statement of nancial position.
Depreciation and impairment

At 1 January 2012
Charge for the year
Impairment losses
Disposals
At 31 December 2012
Carrying amount
At 31 December 2012
122,282
191,147
9,262,169
135,813
2,666,878
122,282
54,210
Depreciation
At 1 January
12,529
9,394
(487,061)
(66)
(178,676)
2,597,893
26,761,597
2,435,245
59,767
31,854,502
Additions
6,013,627
31,040,677
8,566,580
44,833,427
3,421,778
6,073,394
62,895,179
17,576
1,178,689
104,735
4,263,687
5,564,687
Transfers
187,069
4,007,140
1,052,034
(5,246,243)
Disposals
(239)
(158,289)
(29,351)
(44,430)
(232,309)
(393,731)
(1,609,659)
(180,586)
(111,091)
(2,295,067)
At 31 December 2013
8,377,255
48,251,308
4,368,610
4,935,317
65,932,490
2,597,893
26,761,597
2,435,245
59,767
31,854,502
109,735
2,962,777
722,912
3,795,424
40,620
40,620
(27)
(134,902)
(23,791)
(158,720)
(20,264)
(799,800)
(98,433)
(918,497)
At 31 December 2013
2,687,337
28,830,292
3,035,933
59,767
34,613,329
Carrying amount
At 31 December 2013
5,689,918
19,421,016
1,332,677
4,875,550
31,319,161
Depreciation and impairment

Charge for the year
Impairment losses
Disposals
88
Annual Report 2013
2,041
56,771
(38,411)
Additions
At 1 January 2013
52,169
2,561
At 31 December
(79,165)
(130,997)
Cost
At 1 January 2013
At 1 January
9,589,129
(407,854)
986,533
54,210
Cost
(42)
18,071,830
2012
AED000
Additions
(9,202)
5,968,687
2013
AED000
3,031
3,135
At 31 December
15,560
12,529
Carrying amount at 31 December
41,211
41,681
65,842
62,706
2013
AED million
12.0
2012
AED million
14.6
1.0
1.0
Fair value at 31 December

Investment property rental income and direct operating expenses
Property rental income
Direct operating expenses
The fair values of the Groups investment property has been arrived at on the basis of a valuation carried out by internal valuers.
32
Etisalat
89
33
Financials
12. Subsidiaries
12. Subsidiaries (continued)
a) The Groups principal subsidiaries are as follows:

Principal activity
Percentage
shareholding
During the year ended 31 December 2013, Atlantique Telecom S.A. (AT), a 100% subsidiary of the Group, disposed 15% shares of its
subsidiary (Moov CDI) in Ivory Coast for a consideration of AED 371 million.
Telecommunications services
100%
100%
AT transferred 3.98% of its shareholding in another subsidiary (Moov Gabon) to comply with the local regulations to increase the
shareholding of local shareholder to 10%.
UAE
Cable television services

Holds investment in Pakistan
Telecommunication Co. Ltd
Submarine cable activities
Etisalat Services Holding LLC
UAE
Infrastructure services
100%
Etisalat Software Solutions (Private) Limited
India
Technology solutions
100%
Tanzania
65%
Republic of Sudan
90%
UAE
Holds investment in Emerging Market

Telecommunications Services B.V.
(Netherlands)
100%
Country of
incorporation
Emirates Telecommunications and Marine Services FZE
UAE
Emirates Cable TV and Multimedia LLC
UAE
Etisalat International Pakistan LLC
UAE
E-Marine PJSC
Name
Zanzibar Telecom Limited

Canar Telecommunications Co. Limited
Etisalat International Nigeria Limited
Etisalat International Indonesia Limited
Etisalat Afghanistan
Etisalat Misr S.A.E.
90%
100%
UAE
Holds investment in PT XL Axiata TBK
100%
Afghanistan
100%
Egypt
66%
100%
Benin
100%
Etisalat Lanka (Pvt.) Limited
Sri Lanka
100%
Pakistan Telecommunication Company Limited
Pakistan
23%
Etisalat Benin
Etisalat Mauritius Private Limited
Mauritius
Holds investment in Etisalat DB

Telecom Private Limited
b) Disclosures relating to subsdiaries

Information relating to subsidiaries that have non-controlling interests that are material to the group are provided below:
PTCL
100%
At 31 December 2012 as a result of a reassessment by management of the Corporations ability to control, reecting changes to the Board
of PTCL and falling away of certain prevailing existing control impediments, the Group has commenced treating its investment in Pakistan
Telecommunications Company Limited (PTCL) as a subsidiary as disclosed in Note 29.
In March 2012, the Group reviewed the degree of control it has over Etisalat DB Telecom Pvt Ltd (EDB) in respect of the Groups ability to
inuence EDB's response to events in India and the agreements relating to the investment and concluded it is no longer appropriate to treat
EDB as a subsidiary.
2013
AED000
2012
AED000
2013
AED000
2012
AED000
Non-controlling interest (shareholding %)
76.6%
76.6%
34%
34%
Prot
Total comprehensive income/(loss)
618,382
n/a*
95,504
309,179
(265,036)
n/a*
(134,873)
(160,506)
Dividends
(141,106)
n/a*
4,820,564
5,226,706
2,635,964
2,770,837
Current assets
2,546,468
3,102,920
1,093,194
1,055,754
Non-current assets
8,578,638
5,753,169
12,672,950
13,268,148
Current liabilities
2,051,623
1,990,121
3,675,356
3,561,445
2,780,319
2,592,855
2,169,319
2,627,139
2013
AED000
2012
AED000
9,398,260
2,324,172
672,560
(170,073)
Non-controlling interests as at 31 December

Summarised information relating to subsidiary:
* PTCL became a subsidiary effective 31 December 2012

c) Movement in non-controlling interests
The movement in non-controlling interests is provided below:
As at 1 January
The assets and liabilities derecognised as a result of the deconsolidation of EDB in 2012 were as follows:
AED000
Assets
Etisalat Misr
Information relating to non-controlling interest:
Cote dIvoire
Atlantique Telecom S.A.
The Group also acquired additional shareholding in Canar Telecommunications Co. Limited and consequently Groups shareholding increased
from 89% to 90%.
Total comprehensive income:

Prot for the year
1,427,049
Remeasurement of dened benet obligations - net of tax
654,926
Exchange differences on translation of foreign operations
Other Assets
419,373
Total assets
2,501,348
Liabilities
Loss on revaluation of available-for-sale nancial assets
(96,989)
(859,520)
(129,728)
1,032
45
332,817
Consolidation of PTCL
7,259,290
Effect of changes in accouting policy for remeasurement of dened benet obligation
(233,614)
15,351
1,223,915
Borrowings
1,083,475

Disposal of partial interest in subsidiaries
87,233
Acquisition of non-controlling interests
(5,782)
16,835
Other Liabilities
214,687
Total liabilities
2,522,077
Additional equity from non-controlling interests

Dividends
The above deconsolidation did not have a material impact on the consolidated statement of prot or loss for the year
ended 31 December 2012.
90
Annual Report 2013
As at 31 December
34
(153,077)
9,060,552
9,398,260
Etisalat
91
35
Financials
13. Share of results of associates and joint ventures
14. Investment in associates and joint ventures (continued)
Associates excluding EMTS (Note 14 b)

Joint ventures (Note 14 g)
EMTS (Note 14 b)
Total
2013
AED000
2012
AED000
1,743,379
1,641,278
10,962
5,276
(383,399)
1,754,341
1,263,155
14. Investment in associates and joint ventures
Etihad Etisalat Company ("Mobily")

Thuraya Telecommunications Company PJSC ("Thuraya")
Emerging Markets Telecommunications Services Limited ("EMTS
Nigeria")
b) Movement in investments in associates
Country of
incorporation
Principal activity
Percentage
shareholding
Saudi Arabia
27%
UAE
Satellite communication services
28%
Nigeria
40%
Name
Mobily
All Associates
Carrying amount at 1 January
2012
AED000
5,273,517
2013
AED000
6,231,988
Share of results (Note 13)
2012
AED000
16,911,377
1,807,648
1,629,348
1,743,379
1,641,278
Reclasications to Other investments (see below)
(1,858,736)
Impairment of an associate (Note 9)
(2,365,953)
(7,097,260)
Other movements
(355)
1,425
(973,311)
(941,253)
(973,311)
(1,000,143)
6,795,949
5,961,612
7,001,701
6,231,988
On 13 September 2012, the Group sold 775 million shares in PT XL Axiata Tbk (XL), previously classied as an associate, representing
9.1% of XL's issued share capital, at a price of IDR 6,300 per share, retaining a 4.2% stake. The Group received proceeds of IDR 4.85 trillion
(AED 1.86 billion) net of commission and expenses. The partial disposal of the investment in XL resulted in the recognition of gain amounting
to AED 860 million before Federal royalty. As part of the disposal, the Group gave up signicant inuence over XL and, consequently,
classied the remaining stake in XL amounting to AED 860 million on the date of disposal as available-for-sale nancial assets under other
investments in the consolidated statement of nancial position.
f) Joint ventures
2013
AED000
5,961,612
Dividends
The shares of one of the Groups associates are quoted on public stock markets. The market value of the Groups shareholding based on the
quoted prices is as follows:
2013
2012
AED000
AED000
Etihad Etisalat Company ("Mobily")
17,654,107
14,307,486
e) Disposal of investment in an associate
a) Associates
Name
d) Market value of an associate
During the year, the Group has reassessed its accounting treatment for share of results of one of its associates. Consequently, the Group
has discontinued the recognition of the share of results of that associate with effect from 1 January 2013. Accordingly, no share of losses
(2012: AED 383 million) have been offset against loans due from associate as the investment in associate has already been fully written
down by prior year losses. The amount receivable towards interest on loan to the associate of AED 633 million has been impaired during
the year. The net cumulative unrecognised share of losses in the associate as at 31 December 2013 amounts to AED 630 million.
Ubiquitous Telecommunications Technology LLC
UAE
Smart Technology Services DWC LLC
UAE
Mobily
All Associates
2013
AED000
15,017,960
2012
AED000
10,280,545
2013
AED000
15,839,241
2012
AED000
11,248,556
Non-current assets
30,539,065
27,801,830
38,202,534
37,948,613
Current liabilities
(12,167,821)
(9,933,604)
(14,520,802)
(12,632,881)
(9,919,520)
(7,535,676)
(24,581,489)
(19,202,448)
23,469,684
20,613,095
14,939,484
17,361,840
24,838,181
21,609,483
28,686,109
26,704,391
6,583,081
5,933,748
1,935,090
4,058,795
973,311
941,253
973,311
1,000,143
Current assets
Net assets
Revenue
Prot or loss
Dividends received
92
Annual Report 2013
36
Principal activity
Installation and
Percentage
shareholding
management of
network systems
50%
ICT Services
50%
2013
AED000
93,347
2012
AED000
88,071
10,962
5,276
(40,000)
g) Movement in investment in joint ventures
Carrying amount at 1 January

Share of results
Capital reduction
Dividends
(4,000)
60,309
93,347
2013
AED000
93,176
2012
AED000
89,402
h) Aggregated amounts relating to joint ventures
Current assets
Non-current assets
c) Aggregated amounts relating to associates
Country of
incorporation
77,549
154,782
Current liabilities
(50,107)
(57,490)
Net assets
Revenue
120,618
186,694
99,282
77,506
21,924
10,552
Prot or loss
The Group has not identied any contingent liabilities or capital commitments in relation to its interest in joint ventures.
Etisalat
93
37
Financials
15. Other investments
16. Related party transactions (continued)

b)
Other investments comprise of the following, all of which are classied as available-for-sale, with the exception of the Sukuk,
which are classied as held-to-maturity investments.
At 1 January 2012
Additions
Consolidation of PTCL
Investment revaluation
Reclassication from associate (Note 14)
Sukuk redemption
At 31 December 2012
Additions
Transfer to other receivables
Investment revaluation
Sukuk redemption
Quoted equity
investments
AED000
Un-quoted equity
investments
AED000
286,776
69,251
Associates
2013
2012
AED millions
AED millions
Joint Ventures
2013
2012
AED millions
AED millions
Sukuks
AED000
Total
AED000
Trading transactions
Telecommunication services sales
78,030
91,850
456,656
Telecommunication services purchases
105.0
10,417
145,524
225,192
Management and other services
234.5
3,171
3,171
Net amount due from related parties as at 31 December
670.2
533.8
13.6
(2,305)
(2,305)
859,542
859,542
(91,850)
(91,850)
1,089
1,089
1,213,264
92,707
145,524
1,451,495
19,117
53,495
72,612
(65,286)
(65,286)
(138,909)
(138,909)
(1,856)
(1,856)
(1,578)
(1,578)
(1,046)
(1,046)
1,074,355
45,492
195,585
1,315,432
At 31 December 2013
Joint ventures and associates
Quoted equity investments represent investments in listed equity securities that present the Group with opportunity for return through
dividend income and capital growth. These shares are not held for trading. The fair values of these equity securities are derived from quoted
prices in active markets for identical assets, which, in accordance with the fair value hierarchy within IFRS 7 Financial Instruments:
Disclosure, represent Level 1 fair values. Quoted investments include AED 448 million relating to investments held for sale which the Group
intends to sell in the market to maximize its return on investment and to release funds for other strategic investments.
Non-quoted equity investments are carried at cost as they are unquoted equity instruments that do not have a quoted market price in an
active market and whose fair value cannot be reliably measured.
The Sukuk is a bond structured to conform with the principles of Islamic Sharia law. At 31 December 2013, the market value of the
investment in Sukuk was AED 196.8 million (2012: AED 144.6 million). in accordance with the fair value hierarchy within IFRS 7 Financial
Instruments: Disclosure, represents Level 1 fair values.
16. Related party transactions
139.9
110.6
456.0
5.0
Loans to related party

Loans due from related party as at 31 December
2,390.2
2,906.1
Sales to related parties comprise management fees and the provision of telecommunication products and services (primarily voice trafc and
leased circuits) by the Group. Purchases relate exclusively to the provision of telecommunication products and services by associates to the
Group. The loans due from related party is subordinated to external borrowings.
The principal management and other services provided to the Groups associates are set out below:
i. Etihad Etisalat Company
Pursuant to the Communications and Information Technology Commissions (CITC) licensing requirements, EEC (then under incorporation)
entered into a management agreement (the Agreement) with the Corporation as its operator from 23 December 2004. Amounts invoiced
by the Corporation relate to annual management fees, fees for staff secondments and other services provided under the Agreement. The
term of the Agreement is for a period of seven years and can be automatically renewed for successive periods of ve years unless the
Corporation serves a 12 month notice of termination or EEC serves a 6 month notice of termination prior to the expiry of the applicable period.
ii. Thuraya Telecommmunications Company PJSC
The Corporation provides a primary gateway facility to Thuraya including maintenance and support services. The Corporation receives annual
income from Thuraya in respect of these services.
iii. Emerging Markets Telecommunications Services B.V.
Amounts invoiced by the Corporation relate to annual management fees, fees for staff secondments, interest on loan and other services.
c) Remuneration of key management personnel
The remuneration of the Board of Directors, who are the key management personnel of the Group, is set out below in aggregate for the
category specied in IAS 24 Related Party Disclosures.
Transactions between the Corporation and its subsidiaries, which are related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions between the Group and its associates are disclosed below.
Short-term benets
a) Federal Government and state controlled entities
123.0
2013
AED000
35,141
2012
AED000
34,660
As stated in Note 1, in accordance with Federal Law No. 267/10 for 2009, the Federal Government of the UAE transferred its 60% holding
in the Corporation to the Emirates Investment Authority with effect from 1 January 2008, which is ultimately controlled by the UAE Federal
Government. The Group provides telecommunication services to the Federal Government (including Ministries and local bodies). These
transactions are at normal commercial terms. The credit period allowed to Government customers ranges from 90 to 120 days. Trade
receivables include an amount of AED 1,123 million (2012: AED 1,232 million), which are net of allowance for doubtful debts of AED 58
million (2012: 68 million), receivable from Federal Ministries and local bodies. See Note 5 for disclosure of the royalty payable to
the Federal Government of the UAE.
In accordance with IAS 24 (revised 2009) Related Party Disclosures the Group has elected not to disclose transactions with the UAE Federal
Government and other entities over which the Federal Government exerts control, joint control or signicant inuence. The nature of the
transactions that the Group has with such related parties is the provision of telecommunication services.
94
Annual Report 2013
38
Etisalat
95
39
Financials
17. Inventories
20. Trade and other payables

2013
AED000
2012
AED000
Subscriber equipment
2013
AED000
263,536
2012
AED000
384,597
Maintenance and consumables
234,696
38,159
Current
Federal royalty
6,129,150
6,466,873
422,756
Trade payables
4,955,221
3,639,830
Amounts due to other telecommunication administrations
2,472,950
2,762,283
Deferred revenue
1,487,470
1,392,846
Other payables and accruals
6,119,620
6,096,178
21,164,411
20,358,010
Non-current
Trade payables
593,899
451,645
Other payables and accruals
234,666
146,504
At 31 December
828,565
598,149
498,232
18. Trade and other receivables
Amount receivable for services rendered

Allowance for doubtful debts
Net trade receivables
Amounts due from other telecommunication operators/carriers
2013
AED000
6,623,754
2012
AED000
6,882,721
(1,550,560)
(1,555,738)
5,073,194
5,326,983
2,984,878
3,246,681
Prepayments
506,203
485,754
Accrued income
499,734
298,879
Other receivables
2,145,220
1,621,378
At 31 December
11,209,229
10,979,675
Total trade and other receivables

of which current
11,209,229
10,613,248
10,979,675
10,824,624
595,981
155,051
of which non-current
At 31 December
Amounts due to other telecommunication administrations include interconnect balances with related parties.
Federal royalty for the year ended 31 December 2013 is to be paid as soon as the consolidated nancial statements have been approved but
not later than 4 months from the year ended 31 December 2013.
21. Borrowings
The carrying value and estimated fair value of the Groups bank and other borrowings are as follows:
Fair Value
The Groups normal credit terms ranges between 30 and 120 days (2012: 30 and 180 days).
Ageing of net trade receivables, including amounts due from other telecommunication operators/carriers
Upto 60 days
61-90 days
2013
AED000
4,640,536
2012
AED000
4,868,510
538,219
517,607
90-365 days
1,400,590
2,093,294
Over one year
1,478,727
1,094,253
8,058,072
8,573,664
2013
AED000
1,555,738
2012
AED000
1,257,814
(5,178)
297,924
1,550,560
1,555,738
Net trade receivables

Movement in allowance for doubtful debts
At 1 January
Net increase/ (decrease) in allowance for doubtful debts
At 31 December
No interest is charged on the trade receivable balances. With respect to the amounts receivable from the services rendered the Group
holds AED 266 million (2012: AED 260 million) of collateral in the form of cash deposits from customers. Amounts due from other
telecommunication administrations include interconnect balances with related parties.
of which maintained overseas, unrestricted in use

of which maintained overseas, restricted in use
Bank loans
2012
AED000
2013
AED000
2012
AED000
105,895
51,298
105,895
51,298
4,579,854
4,230,862
4,576,106
4,203,791
Other borrowings
Loans from non controlling interest
Vendor nancing
Others
60,382
62,340
60,382
62,340
541,676
871,362
541,676
871,362
8,420
34,336
8,420
34,336
5,296,227
5,250,198
5,292,479
5,223,127
579,186
583,311
At 31 December 2013
of which due within 12 months
5,871,665
5,806,438
1,404,543
1,323,597
of which due after 12 months
4,467,122
4,482,841
Advances from non controlling interest
The fair values of the Groups bank and other borrowings are calculated based on discounted cash ows using an appropriate discount factor
for similar nancial instruments that includes credit risk. The discount rates range from 8 to 10%. Fair values have been derived based on
observable inputs which qualify as Level 2 inputs within IFRS 7 Financial Instruments: Disclosure.
19. Cash and cash equivalents

of which maintained locally
Bank borrowings
Bank overdrafts
Carrying Value
2013
AED000
2013
AED000
15,450,248
2012
AED000
13,968,521
13,834,412
11,371,676
1,448,825
2,562,400
167,011
34,445
Advances from non-controlling interests represent advances paid by the minority shareholder of Etisalat International Pakistan LLC (EIP)
towards the Group's acquisition of its 26% stake in PTCL, net of repayments. The amount is interest free and is not repayable within 12
months of the statement of nancial position date and accordingly the full amount is carried in non-current liabilties. The fair value of
advances is not equivalent to its carrying value as it is interest-free. However, as the repayment dates are variable, a fair value cannot be
reasonably dertermined.
External borrowings of AED 4,563 million (2012: AED 4,292 million) are secured by property, plant and equipment. One of the Group's
subsidiary had a principal repayment due on a bank loan amounting to AED 27 million which was unpaid as at 31 December 2013.
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less. These are
denominated primarily in UAE Dirham, with nancial institutions and banks. Interest is earned on these deposits at prevailing market rates.
The carrying amount of these assets approximates to their fair value.
96
Annual Report 2013
40
Etisalat
97
41
Financials
21. Borrowings (continued)
22. Payables related to investments and licenses

Current
AED000
The terms and conditions of the Groups bank and other borrowings are as follows:
Carrying Value
Year of maturity
Currency
Nominal interest
rate
2013
AED000
2012
AED000
Secured bank loan
2013-2016
Secured bank loan
2013-2017
Secured bank loan
2013-2015
EGP Mid Corridor +1.4%

EURO
EURIBOR +0.8%
1,345,355
1,263,184
504,520
605,725
USD
LIBOR +2.9%
367,798
Republic of Benin
At 31 December 2012
Secured bank loan
2013-2014
USD
LIBOR +4.8%
351,002
374,691
Investments
2014-onwards
PKR
KIBOR+1.2%
226,800
2016-2018
USD
LIBOR +1.3%
33,155
203,128

Licenses
2013-2017
PKR
KIBOR+1.8%
189,000
Secured bank loan
2013-2015
EURO
EURIBOR +4.9%
137,189
173,498
Secured bank loan
2013-2017
PKR
KIBOR+1.4%
151,200
Secured bank loan
2013-2017
PKR
KIBOR+1.7%
151,200
Secured bank loan
2012-2017
USD
LIBOR +6.2%
111,883
83,525
Secured bank loan
2013
PKR
KIBOR+0.2%
Secured bank loan
2014-2019
EUR
KIBOR+0.2%
685,669
Secured bank loan
2015-2020
USD
KIBOR+0.2%
661,232
Secured bank loan
2013-2019
USD
KIBOR+0.2%
271,273
Fixed interest borrowings

Secured vendor nancing
2013-2014
USD
5.0%
74,795
238,220
Secured bank loan
2013-2017
CFA
8.0%
65,803
63,224
Unsecured loans from non-controlling interests
2013-2015
EGP
10.0%
60,382
62,340
Other borrowings
Advances from non-controlling interests
Unsecured vendor nancing
Others
N/A
USD
Interest free
579,186
583,311
2013-2015
PKR
Interest free
296,375
456,794
Various
Various
Various
437,931
316,855
5,871,665
5,806,438
At 31 December
2,936,653
11,022
11,022
14,179
65,476
79,655
1,769
3,275
5,044
2,963,623
68,751
3,032,374
2,936,653
2,936,653
11,022
11,022
56,513
62,793
119,306
1,711
4,576
6,287
3,005,899
67,369
3,073,268
551,860
Secured bank loan
2,936,653
Licenses
Secured bank loan

Unsecured bank loan
Total
AED000
At 31 December 2013
Investments
Variable interest borrowings
Non-current
AED000
Republic of Benin
According to the terms of the share purchase agreement between Etisalat International Pakistan LLC and the Government of Pakistan
(GOP) payments of AED 6,612 million (2012: AED 6,612 million) have been made to GOP with the balance of AED 2,937 million (2012:
AED 2,937 million) to be paid. The amounts payable are being withheld pending completion of certain conditions in the share purchase
agreement relatedto the transfer of certain assets to PTCL.
All amounts payable on acquisitions are nancial liabilities measured at amortised cost and are mostly denominated in either USD or AED
and thus do not result in signicant exchange rate risk.
23. Finance lease obligations
Present value of minimum lease
payments
Minimum lease payments

2013
AED000
2012
AED000
2013
AED000
2012
AED000
Amounts payable under nance lease

Within one year
2,724
6,341
2,564
5,980
Between 2 and 5 years
4,012
6,173
2,460
3,508
57
6,736
12,571
5,024
9,488
After 5 years
a) Interest rates
Less: future nance charges
(1,711)
(3,083)
The weighted average interest rate paid during the year on bank and other borrowings is set out below:
Present value of lease obligations
5,025
9,488
5,024
9,488
of which due within 12 months
2,564
5,980
2,564
5,980
of which due after 12 months
2,460
3,508
2,460
3,508
2013
2012
Bank borrowings
5.4%
7.4%
Other borrowings
4.9%
3.9%
b) Available facilities
At 31 December 2013, the Group had AED 1,966 million (2012: AED 2,675 million) of undrawn committed borrowing facilities in respect of
which all conditions precedent had been met.
98
Annual Report 2013
42
It is the Group policy to lease certain of its plant and machinery under nance leases. For the year ended 31 December 2013, the average
effective borrowing rate was 20.8% (2012: 14.9%). The fair value of the Groups lease obligations is approximately equal to Minimum
lease payments Present value of minimum lease payments their carrying value.
Etisalat
99
43
Financials
24. Provisions
25. Financial instruments

Asset retirement
obligations
AED000
Other
AED000
Total
AED000
74,050
884,350
958,400
3,576
450,966
454,542
Utilisation of provision
(296,104)
(296,104)
Release of provision
(113,844)
(113,844)
(34,370)
(118,461)
(152,831)
342
342
(9,311)
(9,311)
(610)
(27,044)
(27,654)
33,677
779,863
813,540
2,719
1,001,252
1,003,971
At 1 January 2012
Additional provision during the year
Reclassication
At 31 December 2012
Additional provision during the year
Utilisation of provision
Release of provision
Reclassication
At 31 December 2013
Disclosed as:
Included in current liabilities
Included in non-current liabilities
At 31 December
(208,067)
(208,067)
(16,167)
(184,150)
(200,317)
(5,890)
(5,890)
(162)
(162)
(346)
(29,354)
(29,700)
19,721
1,353,654
1,373,375
2013
AED000
1,172,286
2012
AED000
643,569
201,089
169,971
1,373,375
813,540
Asset retirement obligations relate to certain assets held by certain Groups overseas subsidiaries that will require restoration at a future
date that has been approximated to be equal to the end of the useful economic life of the assets. There are no expected reimbursements
for these amounts.
Other includes provisions relating to certain indirect tax liabilities and other regulatory related items, including provisions relating to certain
Groups overseas subsidiaries.
Details of the signicant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and the
bases of recognition of income and expenses) for each class of nancial asset and nancial liability are disclosed in Note 2.
Capital management
The Groups capital structure is as follows:
2013
AED000
2012
AED000
Bank borrowings
(4,682,001)
(4,255,089)
Other borrowings
(1,189,664)
(1,551,349)

Net funds
(5,024)
(9,488)
15,450,248
13,934,076
9,573,559
8,118,150
Total equity
49,592,696
49,912,572
Net equity
40,019,137
41,794,422
The capital structure of the Group consists of bank and other borrowings, nance lease obligations, cash and cash equivalents and total
equity comprising share capital, reserves and retained earnings.
The Group monitors the balance between equity and debt nancing and establishes internal limits on the maximum amount of debt relative
to earnings. The limits are assessed, and revised as deemed appropriate, based on various considerations including the anticipated funding
requirements of the Group and the weighted average cost of capital. The overall objective is to maximise returns to its shareholders through
the optimisation of the net debt and equity balance. The Group is not subject to any externally imposed capital requirements.
Categories of nancial instruments
The Groups nancial assets and liabilities consist of the following:
2013
AED000
2012
AED000
Financial assets
Loans and receivables, held at amortised cost:
Loans to/due from associates and joint ventures
Trade and other receivables, excluding prepayments
Available-for-sale nancial assets (including other investments held for sale)
Held-to-maturity investments
3,074,027
3,414,510
10,703,026
10,493,921
13,777,053
13,908,431
1,119,847
1,305,971
195,585
145,524
15,450,248
13,934,076
30,542,733
29,294,002
Financial liabilities
Other nancial liabilities held at amortised cost:
Trade and other payables, excluding deferred revenue
20,505,506
19,563,313
Borrowings
5,871,665
5,806,438
3,032,374
3,073,268
5,024
9,488
29,414,569
28,452,507
100 Annual Report 2013
44
Etisalat
101
45
Financials
25. Financial instruments (continued)
Financial risk management objectives
Interest rate risk
The Groups corporate nance function monitors the domestic and international nancial markets relevant to managing the nancial risks
relating to the operations of the Group. Any signicant decisions about whether to invest, borrow funds or purchase derivative nancial
instruments are approved by either the Board of Directors or the relevant authority of either the Corporation or of the individual
subsidiary. The Groups risk includes market risk, credit risk and liquidity risk.
The Group is exposed to interest rate risk as entities in the Group borrow funds at both xed and oating interest rates. The Group monitors
the market interest rates in comparison to its current borrowing rates and determines whether or not it believes it should take action related
to the current interest rates. This includes a consideration of the current cost of borrowing, the projected future interest rates, the cost and
availability of derivate nancial instruments that could be used to alter the nature of the interest and the term of the debt and, if applicable,
the period for which the interest rate is currently xed.
The Group takes into consideration several factors when determining its capital structure, with the aim of ensuring sustainability of the
business and maximising the value to shareholders. The Group monitors its cost of capital with a goal of optimizing its capital structure.
In order to do this, the Group monitors the nancial markets and updates to standard industry approaches for calculating weighted
average cost of capital, or WACC. The Group also monitors a net nancial debt ratio to obtain and maintain the desired credit rating over
the medium term, and with which the Group can match the potential cash ow generation with the alternative uses that could arise at all
times. These general principles are rened by other considerations and the application of specic variables, such as country risk in the
broadest sense, or the volatility in cash ow generation, or the applicable tax rules, when determining the Groups nancial structure.
The Groups activities expose it primarily to the nancial risks of changes in foreign currency exchange rates, interest rates and price risks
on equity investments. From time to time, the Group will use derivative nancial instruments to hedge its exposure to currency risk. There
has been no material change to the Groups exposure to market risks or the manner in which it manages and measures the risk during the
year.
The Group has limited transactional exposure to exchange rate risk as it generally enters into contracts in the functional currency of the
entity. These currencies include Nigerian Naira, Egyptian Pounds, Euros, Pakistani Rupee, Indonesian Rupiah, Tanzanian Shilling and CFA
Francs. The Group also enters into contracts in USD and Euros as a proxy for its exposures in AED and CFA due to their respective pegs.
At 31 December 2013, the Group has nancial assets and liabilities in its Egyptian and West African subsidiaries that were in USD and
other limited nancial liabilities in Tanzania that are in currencies other than its respective functional currency. In instances where the
Group has a foreign currency transactional exposure, hedging solutions are explored and executed to avoid volatilities in the
committment. The Group's exposure to transactional exchange rate risk has not historically resulted in material impacts on protability. In
addition to transactional foreign currency exposure, the Group is exposed to risk upon the translation of the Groups foreign subsidiaries
into AED. The Group recognises the impact of the translation as a movement in equity.
Foreign currency sensitivity
The following table presents the Groups sensitivity to a 10 per cent change in the Dirham against the Egyptian Pound, the Euro and the
Pakistani Rupees. These three currencies account for a signicant portion of the impact of net prot, which is considered to materially
occur through cash and borrowings within the Groups nancial statements in respect of subsidiaries and associates whose functional
currency is not the Dirham. The impact has been determined by assuming a weakening in the foreign currency exchange of 10% upon
closing foreign exchange rates. A positive number indicates an increase in the net cash and borrowings balance if the AED/USD were to
strengthen against the foreign currency.
2013
AED000
Pakistani rupees
Other price risk

The Group is exposed to equity price risks arising from its equity investments. Equity investments are held for strategic rather than trading
purposes. The Group does not actively trade these investments. See Note 15 for further details on the carrying value of these investments.
The Groups sensitivity to other prices has not changed signicantly during the year.
Foregin currency risk
Euros
Based on the borrowings outstanding at 31 December 2013, if interest rates had been 2% higher or lower during the year and all other
variables were held constant, the Groups net prot and equity would have decreased or increased by AED 91 million (2012: AED 86
million).This impact is primarily attributable to the Groups exposure to interest rates on its variable rate borrowings.
The Groups sensitivity to interest rate has not changed signicantly during the year.
a) Market risk
Increase in prot/(loss) and increase/(decrease) in equity

Egyptian pounds
Interest rate sensitivity
2012
AED000
b) Credit risk management

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in nancial loss to the Group and arises
principally from the Groups bank balances and trade and other receivables. The Group has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufcient collateral, where appropriate, as a means of mitigating the risk of nancial loss from
defaults. The Groups exposure and the credit ratings of its counterparties are monitored and the aggregate value of transactions concluded
is spread amongst approved counterparties.
For its bank balance, the Group considers various factors in determining with which banks to invest its money including whether the bank
is owned by and/or has received government support, the rating of the bank by rating agencies and the level of security by way of
governmental deposit guarantees. The assessment of the banks and the amount to be invested in each bank is assessed annually or when
there are signicant changes in the marketplace.
At 31 December 2013, the Groups bank balances were invested 99% (2012: 82%) in the UAE and 1% (2012: 18 %) outside of the UAE. Of
the amount in the UAE, an aggregate of AED 5.9 billion (2012: AED 3.8 billion) was with a bank rated A+, AED 1.6 billion (2012: AED 0.6
billion) was with a bank rated A by Fitch, AED Nil (2012: AED 1.4 billion) was with a bank rated A1 and AED 1.5 billion (2012: AED 1 billion)
was with a bank rated A by Standard and Poor's.
The Groups trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing
credit evaluation is performed on the nancial condition of accounts receivable and, where appropriate, collateral is received from
customers usually in the form of a cash deposit.
The carrying amount of nancial assets recorded in the consolidated nancial statements, net of any allowances for losses, represents the
Groups maximum exposure to credit risk without taking account of the value of any collateral obtained.
c) Liquidity risk management
108,489
122,085
52,808
34,867
7,569
(8,299)
46
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk
management framework for the management of the Groups short, medium and long-term funding and liquidity management requirements.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously
monitoring forecast and actual cash ows and matching the maturity proles of nancial assets and liabilities. The details of the available
undrawn facilities that the Group has at its disposal at 31 December 2013 to further reduce liquidity risk is included in Note 21. The majority
of the Groups nancial liabilities as detailed in the consolidated statement of nancial position are due within one year.
Etisalat 103
47
Financials
26. Provision for end of service benets (continued)
Financial liabilities are repayable as follows:
2013
AED000
24,034,485
2012
AED000
22,307,443
In the second year
2,195,976
3,577,394
In the third to fth years inclusive
3,014,922
2,522,549
389,185
272,996
29,634,568
28,680,382
On demand or within one year
After the fth year
The above table has been drawn up based on the undiscounted cash ows of nancial liabilities based on the earliest date on which the
Group can be required to pay. The table includes both interest and principal cash ows.
Borrowings are measured and recorded in the consolidated statement of nancial position at amortised cost and their fair values are
disclosedin Note 21. The carrying amounts of the other nancial assets and liabilities recorded in the consolidated nancial statements
approximate their fair values.
26. Provision for end of service benets
2013
AED000
2012
AED000
3,025,327
2,936,658
(2,555,736)
(2,390,283)
469,591
546,375
Unfunded Plans
Present value of dened benet obligations and other employee benets
1,442,182
1,440,288
Total
1,911,773
1,986,663
2013
AED000
2012
AED000
4,376,946
828,011
3,155,143
468,627
Service cost
132,541
109,929
Interest cost
382,308
4,712
208,290
(344,296)
(179,985)
(4,591)
Exchange difference
(292,992)
(188)
As at 31 December
4,467,509
4,376,946
2013
AED000
2012
AED000
2,390,283
Funded Plans
Present value of dened benet obligations
Less: Fair value of plan assets
The movement in dened benet obligations for funded and unfunded plans is as follows:
As at 1 January
Additional provision from consolidation of PTCL
Actuarial loss/(gain)
Remeasurements
Benets paid
Others
The movement in the fair value of plan assets is as follows:

As at 1 January
Additional provision from consolidation of PTCL
2,390,283
Return on plan assets
268,676
Contributions received
308,449
(214,939)
Benets paid
Exchange difference
As at 31 December
2012
AED000
Service cost
132,419
109,929
Interest cost
130,075
Others
Following are the signicant assumptions used relating to the major plans
(196,734)
2,555,735
2,390,283
48
3,715
266,209
109,929
2013
AED000
2012
AED000
Discount rate
UAE
Fair value of nancial instruments
The liabilities recognised in the consolidated statement of nancial position are:
2013
AED000
The amount recognised in statement of prot or loss is as follows:
Pakistan
3.07%
3.07%
11% - 12.5%
N/A
Average annual rate of salary

UAE
4.0%
3.5%
7% - 11.5%
N/A
2013
AED000
2012
AED000
Authorised:
8,000 million (2012: 8,000 million) ordinary shares of AED 1 each
8,000,000
8,000,000
Issued and fully paid up:

7,906.1 million (2012: 7,906.1 million) ordinary shares of AED 1 each
7,906,140
7,906,140
2013
AED000
2012
AED000
29,115,839
28,686,726
(985,167)
(762,502)
Pakistan
27. Share capital
28. Reserves
The movement in the Reserves is provided below:
As at 1 January
Transfer from retained earnings
As at 31 December
(4,329)
136,308
1,195,944
28,266,980
29,115,839
Etisalat 105
49
Financials
28. Reserves (continued)
29. Consolidation of PTCL
The movement for each type of reserves is provided below:
2013
AED000
2012
AED000
(1,100,345)
(335,865)
(1,109,536)
(760,151)
Translation reserve
As at 1 January
As at 31 December
(4,329)
(2,209,881)
(1,100,345)
80,108
82,459
(139,941)
(2,351)
Investment revaluation reserve

As at 1 January
Loss on revaluation
Reclassication adjustment relating to available-for-sale nancial assets impaired during the year
264,310
As at 31 December
204,477
80,108
Development reserve
As at 1 January and 31 December
7,850,000
7,850,000
8,108,000
8,070,000
Asset replacement reserve

As at 1 January
As at 31 December
58,000
38,000
8,166,000
8,108,000
Statutory reserve
As at 1 January
As at 31 December
97,561
56,641
67,516
40,920
165,077
97,561
14,080,515
12,963,491
General reserve
As at 1 January
As at 31 December
10,792
1,117,024
14,091,307
14,080,515
The Corporation, through its majority owned subsidiary Etisalat International Pakistan LLC (EIP), owns the entire 1.326 billion Class B
shares of PTCL. These Class B shares represent 26% of PTCLs issued capital and, in accordance with PTCLs Articles of Association, provide
the Corporation with 53% of the voting rights. Under the terms of the Shareholders Agreement between EIP and the Government of Pakistan
(GOP), EIP has the right to appoint ve of the nine members of the Board of Directors of PTCL in addition to the appointment of certain key
management personnel. In previous periods, management assessed that there were certain signicant control impediments, including but
not limited to restrictions on the Corporations nancial and operating decision making ability, and because of these, PTCL was previously
accounted for as an associate using the equity method. During the fourth quarter of 2012, management reassessed their position, judging
based on a number of recent developments and their experience in practice that the majority of these former control impediments had either
been alleviated or no longer have a signicant impact on control. As a result, it was concluded by management that the Corporation can be
demonstrated to have control over the PTCL, which should therefore be accounted for as a subsidiary.
Accordingly, the Corporation has derecognised its existing investment in PTCL as an associate and has consolidated PTCL as at 31 December
2012. The consolidation has been accounted for as a step acquisition as per IFRS 3, with no additional consideration beyond that paid and
payable for the original acquisition in 2006, adjusted for impairment recognised during the year ended 31 December 2012, as referred to in
note 9. After taking into account this impairment, there was no gain or further loss on derecognition of the investment in PTCL as an
associate.
As at the 31 December 2012, management had not completed the fair valuation of the separately identiable assets and liabilities of the
PTCL or the purchase price allocation exercise. Therefore, the balances consolidated as at 31 December 2012 were mainly the existing PTCL
book values with the excess consideration being accounted for as provisional goodwill.
The application of acquisition accounting under IFRS 3 requires that the total purchase price to be allocated to the fair value of the assets
acquired and liabilities assumed based on their fair values at the acquisition date, with amount exceeding the fair values being recorded as
goodwill. Accordingly, during the year ended 31 December 2013, the assets and liabilities of PTCL have been appraised, based on third party
valuations, for inclusion in the consolidated statement of nancial position.
The purchase price allocation process (PPA) requires an analysis of acquired xed assets, licenses, customer relationships, brands,
contractual commitments and contingencies to identify and record the fair values of all assets acquired and liabilities assumed. In valuing
acquired assets and liabilities assumed, fair values were based on but not limited to: future expected discounted cash ows for customer
relationships, current replacement cost for similar capacity and obsclensence for certain xed assets, comparable market rates for real estate
and appropriate discount rates and growth rates.
The following table summarises the fair values of the assets acquired, liabilities assumed, related deferred taxes and goodwill as of the
acquisition date futher to the purchase price allocation process (PPA).
Fair values based

on purchase
price allocation
AED000
a) Development reserve, asset replacement reserve and general reserve

These reserves are all distributable reserves and comprise amounts transferred from unappropriated prot at the discretion of the Group to
hold reserve amounts for future activities including the issuance of bonus shares.
Intangible assets
b) Statutory reserve
Investments
In accordance with the UAE Federal Law No. 8 of 1984, as amended, and the respective Memoranda of Association of some of the Groups
subsidiaries, 10% of their respective annual prots should be transferred to a non-distributable statutory reserve. The Corporations share
of the reserve has accordingly been disclosed in the consolidated statement of changes in equity.
Inventory
c) Translation reserve
The cumulative difference between the cost and carrying value of available-for-sale nancial assets is recorded in the Investment
revaluation reserve. The balance at 31 December 2013 includes AED 259 million being the cumulative gain recognised in other
comprehensive income relating to quoted investment which is classied as held for sale.
129,339
5,619,640
4,190
4,190
125,305
125,305
1,525,008
1,525,008
1,452,608
1,452,608
(1,728,531)
(1,728,531)
(764,860)
(764,860)
Obligations under nance leases
d) Investment revaluation reserve
910,665
11,087,674
Cumulative foreign exchange differences arising on the translation of overseas operations are taken to the translation reserve.
Provisional
values reported
in 2012
AED000
(3,901)
(3,901)
Bank loans
(1,369,283)
(1,369,283)
(1,429,023)
(716,402)
Net identiable assets acquired
9,809,852
4,273,113
Share of net identiable assets acquired (26%)
2,550,562
1,111,009
Goodwill
4,546,698
5,986,251
Fair value of investment in PTCL as at 31 December 2012
7,097,260
7,097,260
1,452,608
1,452,608
Net cash inow arising on acquisition:

Cash and cash equivalents acquired
50
Etisalat 107
51
Financials
31. Commitments
29. Consolidation of PTCL (continued)
a) Capital commitments
Goodwill resulting from the acquisition has been assigned to PTCL Group as a CGU. Acquisition accounting allows for recognition of
deferred tax liabilities on acquired intangibles (other than goodwill) which is expected to be reected as a tax benet on Groups future
consolidated statement of prot or loss in proportion to and and over the amortization period of the related intangible asset. There is no
deferred tax liability recorded for fair value adjustment relating to land as this is not depreciated.
The Group has approved future capital projects and investments commitments to the extent of AED 5,448 million (2012: AED 5,005 million).
30. Signicant events

a) On 22 July 2013, the Group made a binding offer that valued Vivendis 53% stake in Itisalat Al Maghrib (Maroc Telecom) share at MAD
92.6, amounting to a consideration of EURO 3.9 billion (equivalent to AED 19.3 billion) for Vivendis 53% stake. The above consideration
does not include the dividend received by Vivendi from Maroc Telecom in respect of the 2012 nancial year, equivalent to MAD 7.40 per
share, which will also be for the benet of Etisalat. At closing, Etisalat will pay Vivendi the cash value of such 2012 dividend of Euro 0.3
billion (equivalent to AED 1.5 billion).
On 4 November 2013, the Group signed a Share Purchase Agreement for the acquisition of Vivendis 53% stake in Maroc Telecom. Closing
of the transaction would be subject to a number of conditions which are expected to be fullled in 2014. These conditions include, among
others, the execution of a shareholders agreement with the Kingdom of Morocco regarding Maroc Telecom and securing competition and
regulatory approvals in the Kingdom of Morocco and certain other jurisdictions in Maroc Telecoms footprint.
Etisalat is planning to nance the transaction through external borrowings and has already secured a commitment to provide the requisite
funds from a syndicate of local and international banks. Etisalats Extraordinary General Assembly Meeting that was held on 28 May 2013
approved the Boards recommendation to raise external funding in excess of the Corporations capital, as per Etisalats Articles of
Association.
b) Following the Supreme Court of Indias cancellation of all of Etisalat DB Telecom Private Limiteds (the Company) licenses removing
the Companys ability to operate its current mobile telecommunications business, on 22 February 2012 the Board of the Company
unanimously decided to shut down its network and gave the appropriate notices to the Indian authorities. Furthermore, the resignation of
the directors of the Company appointed by the majority shareholders without replacement adversely affected the ability of the Companys
Board of Directors to take decisions. Subsequent to this, Etisalat Mauritius Limited (owned by Etisalat Corporation) led proceedings on 12
March 2012 for the just and equitable winding up of the Company, which are ongoing.
a) Lease commitments
i) The Group as lessee
Minimum lease payments under operating leases recognised as an expense in the

year (Note 5)
2013
AED000
2012
AED000
258,458
248,165
At the end of the reporting period, the Group had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2013
2012
AED000
AED000
Within one year
275,839
252,133
Between 2 to 5 years
After 5 years
1,330,078
1,202,491
722,640
740,586
2,328,557
2,195,210
Operating lease payments represent rentals payable by the Group for certain of its ofce and retail properties. Leases are negotiated for an
average term of two years.
ii) The Group as lessor
Property rental income earned during the year was AED 12 million (2012: AED 15 million). All of the properties held have committed tenants
for the next 3-15 years.
At the reporting date, the Group had contracted with tenants for the following future minimum lease payments:
2013
AED000
2012
AED000
On 3 July 2012, the Bombay High Court appointed an Indian law rm, as the Authorised Person to manage the Company pending the
Bombay High Court's decision on the admission of the just and equitable winding up Petition submitted by Etisalat Mauritius Limited.
Within one year
10,207
11,955
Between 2 to 5 years
29,673
33,696
In November 2013, the High Court in Bombay admitted the petition and conrmed the Authorized Person shall remain in place until further
orders. This decision was appealed by one of the Companys shareholders and the appeal is still pending.
After 5 years
5,289
39,880
50,940
32. Contingent liabilities

a) Bank guarantees
At 31 December 2013, the Groups bankers had issued:
i) performance bonds and guarantees for AED 527 million (2012: AED 431 million) in relation to contracts, of which AED 393 million
(2012: AED 308 million) relates to the Corporation's overseas investments and
ii) promissory notes and letters of credit amounting to AED 228 million (2012: AED 293 million).
b) Derivative nancial instruments
Derivative nancial instruments representing the fair value of a written put option over the equity of an overseas subsidiary amounting to
AED 355 million were derecognised during the three months ended 31 March 2012 and are treated as a contingent liability.
c) Foreign exchange regulations
On 23 July 2011, Etisalat DB Telecom Pvt Limited (the Company) received a show cause notice from the Directorate of Enforcement (ED)
of India alleging certain breaches of the Foreign Exchange Management Act, 1999 (FEMA), by the Company and its Directors. The Company
and its Directors have led their response(s) to the notice and the cases of each of the notices have been part heard by the ED.
d) Other contingent liabilities
The Group is disputing certain charges from the regulatory agencies in the UAE and certain other jurisdictions but does not expect any
material adverse effect on the Group's nancial position and results from resolution of these.
Etisalat 109
53
Financials
35. Restatement and reclassication of comparative gures
33. Dividends
Amounts recognised as distribution to equity holders:
AED000
31 December 2012
Final dividend for the year ended 31 December 2011 of AED 0.35 per share
2,767,149
Interim dividend for the year ended 31 December 2012 of AED 0.25 per share
1,976,535
31 December 2013
Final dividend for the year ended 31 December 2012 of AED 0.45 per share
Interim dividend for the year ended 31 December 2013 of AED 0.35 per share
The comparative gures for 2012 have been restated mainly due to:
a. changes in accounting policy relating to provision for end of service benets (IAS 19 Employee benets). The restatements are in line with
IAS 1 Presentation of Financial Statements and IAS 8 Accounting policies, changes in accounting estimates and errors;
4,743,684
b. purchase price allocation of PTCL resulting in fair value adjustments to assets, related deferred tax liabilities and revision of goodwill;
3,556,224
c. current tax assets and current tax liabilities have been reclassied from trade and other receivables and trade and other payables
respectively and presented separately in the consolidated statement of nancial position.
2,765,952
6,322,176
As previously
reported
Restatement
relating to IAS19
Fair value
adjustments
relating to PTCL
Other
reclassications
As restated
AED000
AED000
AED000
AED000
AED000
Goodwill
7,523,132
(1,439,553)
(154,492)
5,929,087
Other intangible assets
9,444,781
781,327
10,226,108
25,572,642
5,468,035
31,040,677
482,138
(195,531)
286,607
A nal dividend of AED 0.45 per share was declared by the Board of Directors on 19 February 2013, bringing the total dividend to AED 0.70
per share for the year ended 31 December 2012.
An interim dividend of AED 0.35 per share was declared by the Board of Directors on 22 July 2013 for the year ended 31 December 2013.
A nal dividend of AED 0.35 per share was declared by the Board of Directors on 4 March 2014, bringing the total dividend to AED 0.70 per
share for the year ended 31 December 2013.
34. Earnings per share

2013
Earnings (AED'000)
Earnings for the purposes of basic earnings per share being the prot attributable to
the equity holders of the Corporation
Number of shares ('000)
Weighted average number of ordinary shares for the purposes of basic earnings per share
Consolidated statement of nancial position

as at 31 December 2012
2012
Deferred tax assets

Trade and other receivables - non-current
Trade and other receivables - current
7,078,388
6,741,818
Current income tax assets

Trade and other payables - current
Current income tax liabilities
7,906,140
7,906,140
The Group does not have potentially dilutive shares and accordingly, diluted earnings per share equals to basic earnings per share.
155,051
155,051
11,533,817
(709,193)
10,824,624
554,139
554,139
20,487,583
(129,573)
20,358,010
229,965
229,965
698,541
(100,392)
598,149
1,464,611
(163,648)
712,621
(195,531)
1,818,053
1,518,036
468,627
1,986,663
29,115,839
Trade and other payables - non-current
Reserves
29,257,241
(141,402)
Retained earnings
3,563,698
(71,365)
3,492,333
5,547,778
(233,614)
(13,090)
9,398,260
(735,387)
(154,492)
(889,879)
4,097,186
Consolidated statement of comprehensive

income for the year ended 31 December
2012
Exchange differences on translation of foreign
operations
110
Annual Report 2013
54
Etisalat
111
55
Notice of General Annual Shareholders Meeting
The Emirates Telecommunications Corporations Board of Directors is pleased to invite their esteemed shareholders to attend the General
Annual Shareholders Meeting to be held at 4:30pm on Wednesday 26th March 2014 at Etisalat Head Office in Abu Dhabi for the purpose
of discussing the following meeting agenda:
1 To hear and approve the report of the Board of Directors on the Corporations activities and its financial position for the fiscal year
ended 31 December 2013.
2 To hear and approve the External Auditors report for the fiscal year ended 31 December 2013.
3 To discuss and approve the Corporations Consolidated statements of financial position and proft or loss for the year ended 31
December 2013
4 To consider the Board of Directors recommendation on the distribution of dividends in the amount of 35 fils per share to be
distributed for the second half of the year 2013, bringing the full dividend for the fiscal year ended 31 December 2013 to 70 fils per
share.
5 To look into the compensations of the Members of the Board of Directors.
6 To absolve the Members of the Board of Directors and the External Auditors of liability in respect of the fiscal year ended 31 December
2013.
7 To appoint External Auditors for the year 2014 and to determine their remunerations.
Based on Board of Directors directives

Corporate Secretary
Notes:
1 Each shareholder is entitled to delegate a proxy to attend the Annual General Meeting on his/her behalf as per the delegation form
attached with the meeting invitation (minors and those who have no legal capacity shall be represented by their legal representative).
All delegations forms shall be submitted to the securities department of the National Bank of Abu Dhabi PO Box 6865-Abu Dhabi, at
least two days before the meeting date in order to register the same in the respective records. Only original delegations are accepted.
2 Only the owners of the shares as on Tuesday, 25 March, 2014 shall be entitled to vote in the Annual General Meeting.
3 The owners of the shares as on Sunday, 6 April, 2014 shall be entitled to shares dividends.
4 The shareholders can review the Corporations financial Statement on Abu Dhabi Exchange website.
5 To ensure good organization of the Annual General Meeting, any shareholder who attends after the beginning of the meeting shall
not be entitled to vote.
6 If the quorum of the first Annual General Meeting has not been met, the second meeting shall be held on the 1 April 2014 at the
same place and time.
112
Annual Report 2013
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Annual Report 2013

Key Highlights of 2013

Chief Executive Officers Statement

Etisalat Group Strategy

Our International Presence

Independent Auditors Report to the Shareholders

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Notice of General Annual Shareholders Meeting

Key highlights of 2013

Annual Report 2013

began in earnest in 2004 through the

operates the Middle Easts largest LTE

For nearly 40 years, Etisalat has helped

Last year, Etisalat

our operating markets. Being an industry

new innovative products that can be

Eissa Mohamed Al Suwaidi

Annual Report 2013

Eissa Mohamed Al Suwaidi

Sheikh Ahmed Mohamed Sultan

Mohamed Hadi Ahmed Abdulla

Abdelmonem Bin Eisa

Shoaib Mir Hashim Khoory

Annual Report 2013

Khalaf Bin Ahmed Al Otaiba

Abdulla Salem Al Dhaheri

Mubarak Rashed Al Mansouri

Mana Mohamed Saeed Al Mulla

Essa Abdulfattah Kazim

Timeline - History of Etisalat

Annual Report 2013

The Middle Easts first

It also buys a stake in

Etisalat acquires a stake

Etisalat signed SPA with

Chief Executive Officers

Annual Report 2013

and individuals to the services they

was Etisalats involvement in a bicycle

Ahmed Abdulkarim Julfar

Another notable innovation was when

Ahmad Abdulkarim Julfar

Dr. Daniel Ritz, Ph.D

Annual Report 2013

Nasser Bin Obood

Dr. Kamal Shehadi, PhD

Annual Report 2013

Etisalat Group Strategy

To be the leading and most admired

Provide best in class total customer

In todays rapidly evolving digital society,

Annual Report 2013

and the introduction of new services allowed

per cent stake in Maroc Telecom. The closing

Etisalat works continuously on providing

With a strong footprint across 15 markets,

People & Culture

Despite the fact that Etisalat continues

Etisalats people and corporate culture are