Abu Dhabi, UAE – July 26, 2026 – In a strategic move underscoring its commitment to network superiority and future-proofing its operations, e& (formerly Etisalat Group) has announced a significant surge in capital expenditure (capex) for the second quarter of 2026. The telecommunications giant poured AED 2.873 billion into its global infrastructure, excluding license and spectrum costs, marking a robust increase of 15.4 percent from AED 2.490 billion in Q2 2025 and a substantial 42.1 percent leap from AED 2.022 billion in Q1 2026. This amplified investment signals a clear dedication to enhancing network capabilities, supporting burgeoning subscriber numbers, and laying the groundwork for next-generation services.
The robust capex outlay has propelled e&’s capex intensity to 15 percent of its revenue for the quarter. This figure represents a notable uptick from 14 percent recorded in the same period last year and a significant rise from 11 percent in the preceding quarter. This heightened investment ratio directly reflects e&’s proactive strategy to build and maintain premium, high-performance networks, which are crucial for sustaining its impressive subscriber growth and capturing future market opportunities.
A Chronology of Escalating Investment: Tracking e&’s Strategic Capex Trajectory
The Q2 2026 capex figures are not an isolated event but rather a continuation of a deliberate investment strategy. Analyzing the historical trend, we observe a consistent and accelerating commitment to network enhancement. The AED 2.873 billion investment in Q2 2026 stands as a testament to this escalating focus.
- Q1 2026: e& invested AED 2.022 billion in its network infrastructure. This foundational investment set the stage for the subsequent acceleration.
- Q2 2025: In the comparable period of the previous year, the Group’s capital expenditure stood at AED 2.490 billion. While significant, this figure was surpassed by the Q2 2026 investment.
- Q2 2026: The latest report reveals a substantial leap to AED 2.873 billion, representing a 15.4 percent increase year-on-year and a remarkable 42.1 percent quarter-on-quarter surge.
This chronological perspective clearly illustrates e&’s strategic intent to not only maintain but aggressively expand and upgrade its network capabilities. The decision to allocate a larger portion of its revenue to capex during this period highlights a proactive approach to staying ahead of technological advancements and evolving customer demands. The timing of this increased investment is particularly noteworthy, occurring as the company continues to experience significant subscriber growth, indicating a direct correlation between infrastructure development and market expansion.
International Operations Spearhead Global Network Expansion
The lion’s share of e&’s intensified capital investment is strategically directed towards its international operations, reflecting the Group’s global ambitions and the immense growth potential observed across its diverse markets. e& International recorded an impressive AED 1.899 billion in capex, accounting for a significant 66 percent of the total Group capex for the quarter. This substantial allocation underscores the critical role these markets play in e&’s overall growth strategy.
The capex intensity within e& International reached 20.4 percent, a figure that signifies a deep commitment to bolstering the network infrastructure in these key regions. This elevated intensity suggests aggressive deployment of advanced technologies, expansion of coverage, and enhancement of service quality to meet the burgeoning demand for high-speed connectivity and digital services.
Within this dynamic international portfolio, several key operating companies stand out for their substantial contributions to the network build-out:
- Maroc Telecom: Leading the charge, Maroc Telecom made the largest individual investment, deploying AED 819 million in capex. This translates to a robust capex intensity ratio of 22.4 percent, indicating a focused effort to strengthen its network and capitalize on market opportunities in Morocco.
- PPF Telecom: Demonstrating strong commitment to its markets, PPF Telecom invested AED 492 million, with a capex intensity of 17.5 percent. This investment is crucial for enhancing connectivity and digital services across its operational regions.
- e& Egypt: Exhibiting the highest capex intensity among the highlighted international businesses at 27.1 percent, e& Egypt invested AED 347 million. This aggressive investment strategy signals a clear intent to capture market share and offer cutting-edge services in one of the region’s most dynamic telecommunications landscapes.
- PTCL: The Pakistan Telecommunication Company Limited (PTCL) also played a significant role, investing AED 224 million. This represents a capex intensity of 16.4 percent, highlighting PTCL’s ongoing efforts to modernize its infrastructure and expand its reach within Pakistan.
This strategic distribution of capital demonstrates e&’s nuanced approach to international expansion, prioritizing markets with high growth potential and a clear need for advanced telecommunications infrastructure. The substantial investments in these diverse geographies are expected to yield significant returns in terms of subscriber acquisition, service penetration, and overall market leadership.
Domestic Strength: e& UAE Bolsters Premium Network
While international operations are a major focus, e& has not overlooked its home market. e& UAE, the Group’s foundational entity, invested AED 914 million in its network infrastructure during Q2 2026. This investment, representing a capex intensity of 10.3 percent, is dedicated to further strengthening its premium telecom network. This commitment ensures that e& UAE continues to offer unparalleled connectivity and advanced services to its discerning customer base, solidifying its position as a leader in the UAE’s technologically advanced market.
The focus for e& UAE remains on enhancing the quality, reliability, and speed of its services, catering to the growing demand for data-intensive applications, cloud services, and the burgeoning ecosystem of connected devices. This ongoing investment in its domestic infrastructure is crucial for maintaining its competitive edge and supporting the UAE’s vision of becoming a global digital hub.
Separately, e& enterprise, a key segment for the group, recorded a modest AED 13 million in capex, with a capex intensity of 1.5 percent. This lower intensity is indicative of the segment’s business model, which often focuses on specialized solutions and services rather than large-scale infrastructure rollouts.
Strategic Implications: A Future Forged in Connectivity
The substantial increase in e&’s capital expenditure, particularly in its international markets, carries profound strategic implications for the company and the broader telecommunications landscape. This aggressive investment strategy is clearly designed to achieve several key objectives:
- Fueling Subscriber Growth: The surge in capex is directly linked to e&’s impressive subscriber growth, which saw a remarkable 30.4 percent increase to 251.5 million subscribers in Q2 2026. Enhanced network capacity, improved coverage, and superior service quality are fundamental drivers for attracting and retaining subscribers in an increasingly competitive market.
- Paving the Way for 5G and Beyond: While the report focuses on current capex, the underlying investments are crucial for the continued rollout and densification of 5G networks, and for laying the groundwork for future technological advancements such as 6G. These premium networks are essential for supporting the ever-increasing demand for data, low-latency applications, and the Internet of Things (IoT).
- Strengthening Competitive Positioning: By investing heavily in network infrastructure, e& is reinforcing its competitive advantage in both its established and emerging markets. Superior network performance is a key differentiator that can lead to increased market share and customer loyalty.
- Driving Digital Transformation: The robust network infrastructure is the backbone of digital transformation initiatives across various sectors, including enterprise, government, and consumer services. e&’s investments will enable the delivery of more sophisticated digital solutions, fostering innovation and economic growth in the regions it serves.
- Enhanced Revenue Generation: The increased capex intensity, while appearing as a cost, is a strategic investment aimed at unlocking future revenue streams. By offering superior services and expanding its reach, e& is positioning itself to capture a larger share of the growing digital economy.
The company’s commitment to investing in premium networks is not merely about expanding capacity; it’s about building a resilient, high-performance ecosystem that can support the demands of the future. As digital services become increasingly integral to daily life and business operations, e&’s strategic capex decisions in Q2 2026 signal its intent to remain at the forefront of this evolution, ensuring robust connectivity and driving innovation across its global footprint. The coming quarters will undoubtedly reveal the full impact of these significant investments as e& continues to connect more people and power more possibilities.
