Declines on the UAE's two telecom operators dragged the Dubai and Abu Dhabi's bourses lower on Tuesday after the government set new taxes, or royalty fees, which were higher than analysts had expected.
Shares in Dubai-listed du slumped 9.8 percent, their lowest close in nine weeks and the largest one-day loss since April 16. The firm will pay 5 percent of revenue and 17.5 percent of profit in royalties for 2012, which will steadily increase to 15 and 30 percent respectively in 2016.
Abu Dhabi-listed Etisalat will pay 35 percent of its profit in royalties, plus a further 15 percent of revenue, according to a government statement on Monday. Heavyweight Etisalat plunged 9 percent to its lowest close
since June 7.
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