e&’s strategic steps toward a tech-driven tomorrow

True transformation and lasting success are dynamic, ongoing journeys that entail continuous innovation and adaptation. They require foresight, purposeful leadership, and strategic vision. Harrison Lung, Group Chief Strategy Officer at e&, explains the company’s strategy of transitioning into a tech-driven powerhouse, offering insights into the innovative initiatives, guiding principles, and cutting-edge technologies shaping e&’s growth.

Q&A

1. In 2022, e& restructured and rebranded as part of a move to delayer and become a techco. Can you outline your organization’s current structure and how you see it unlocking value and generating new revenues?

Harrison Lung (HL): Two years ago, e& underwent a significant transformation, restructuring, and rebranding to evolve from a traditional telecom company into a global technology powerhouse. This strategic move was driven by our vision to lead in a rapidly changing digital landscape and to unlock new avenues for growth and value creation. This shift also stems from our profound understanding of the dynamic telecommunications landscape, where we have observed the dawn of the digital revolution and how it is disrupting industries and redefining customer expectations and experiences.

This transformation journey is backed by our "4D strategy," a comprehensive blueprint designed to drive both organic and inorganic growth. This strategy is more than a roadmap; it's our bold vision for the future.

The first dimension of this strategy focuses on ‘doubling down on our core’ strengths. This means enhancing our telecommunications services in the UAE while also bolstering our international operations. We are focused on building leading fixed and mobile networks to bring more people into the digital ecosystem.

Next, is ‘diversifying our portfolio.’ We’re not just expanding geographically, but we’re also branching out into non-telco sectors like fintech, health tech, cybersecurity, IoT, cloud services, and entertainment. This diversification opens up new revenue streams and helps us stay resilient against market fluctuations.

‘Digitalizing our operations’ is the third pillar of our strategy. This entails deepening the digitalization and automation processes across all our operations, leveraging AI and other advanced technologies to enhance customer experience, streamline systems, and boost efficiency. Finally, the last pillar is ‘driving sustainability.’ We’re committed to achieving best-in-class ESG (Environmental, Social, and Governance) performance. This involves fostering an engaged, diverse, and inclusive workplace while building strong awareness and value for the e& brand. For us, sustainability is more than just compliance; it’s about creating a resilient business model that can thrive long-term.

This comprehensive and future-forward strategy has enabled our growth and international expansion. To date, we operate in 32 countries across the Middle East, Africa, and Asia.

e&’s current organizational structure is centered around five key business pillars, namely e& UAE, e& enterprise, e& life, e& international, and e& capital. Each of these pillars is designed to drive innovation, enhance operational efficiency, and generate new revenue streams.

Our legacy as a network and connectivity leader continues with our telecoms arm e& UAE. This division focuses on delivering top tier fixed and mobile network services. Beyond core connectivity solutions, it also offers advanced next-generation ICT services. This includes private networks, industry-specific ICT solutions, managed services, and AI-enabled smart solutions. It also provides leading carrier and wholesale services offering voice, messaging, roaming, connectivity, and satellite services, along with inter-operator international and domestic services. Our carrier and wholesale services ensure the efficient flow of data traffic, supporting seamless communication and connectivity.

e& enterprise focuses on the digital transformation of governments, corporates, and large organizations, providing innovative solutions that empower businesses to thrive in the digital age. Our services range from cloud computing and cybersecurity to advanced AI applications, ensuring our enterprise clients can leverage cutting-edge technology to enhance their operations.

e& life is dedicated to delivering next-generation technologies and digital experiences through smart connectivity platforms in entertainment, retail, and financial services. As a leading consumer ecosystem player, we leverage advanced digital services to meet the evolving needs of our customers, offering them comprehensive and engaging digital experiences. Under e& life are three key subsidiaries, namely evision, Careem Everything App, and e& money.

evision is the largest content aggregator in the MENAP region, offering cloud-based and streaming services, and holds a majority stake in STARZPLAY. e& money is the company’s fintech platform offering a financial super app with secure and convenient payment solutions, including international and local transfers, payments, and gifts. Meanwhile, the Careem Everything App, acquired by e& life last year, is a comprehensive digital lifestyle platform offering a range of services, including food and grocery delivery, micromobility solutions, and digital payments through CareemPay.

Meanwhile, e& international is the pillar supporting e&’s overall ambition to grow our telco portfolio. This involves extending the reach of our services and solutions across various regions, including Africa and Asia. We actively seek strategic partnerships and collaborations with international companies and governments to leverage local market expertise and broaden our offerings. Our commitment is to provide cutting-edge telecommunications and technology solutions tailored to meet the diverse needs of these markets. Our primary goal is to be a leading technology and telecommunications provider worldwide by establishing a strong global presence and market leadership.

Lastly, e& capital, the investment arm of the e& group, plays a pivotal role in driving our strategic growth. Since its inception a year ago, e& capital has invested in 10 companies, deploying close to USD 100 million in high-growth, innovative ventures. Among these investments is Ikigai Labs, a startup focused on leveraging generative AI for tabular data. Furthermore, e& capital led the Series A funding for Maxbyte and spearheaded the Series B funding for Airalo, a global eSIM marketplace that offers travellers seamless connectivity.

2. Where do you see the greatest opportunities for growth in the digital consumer sector and why?

HL: We see the greatest opportunities for growth in the digital consumer sector in three key areas: personalization through AI and machine learning, the expansion of fintech solutions, and the rise of integrated digital ecosystems.

In terms of personalization, the digital age has brought an overwhelming amount of information and choices to consumers, making tailored experiences more valuable than ever. AI and machine learning technologies enable us to analyse vast amounts of data to understand consumer preferences, behaviours, and needs in real time. By leveraging these insights, we can create highly personalised experiences that resonate with each individual user.

For example, AI-driven recommendation engines can suggest content, products, and services tailored to each consumer's interests, enhancing engagement and satisfaction. Personalization extends to customer support as well, where AI-powered chatbots and virtual assistants provide instant, accurate, and personalized responses, improving overall customer service. This level of customization not only enhances user experience but also drives customer loyalty and retention, ultimately boosting revenue.

Secondly, the fintech sector is rapidly evolving, offering a plethora of opportunities to enhance financial services for consumers. With the increasing reliance on mobile devices for financial transactions, there is a growing demand for secure, efficient, and innovative fintech solutions. At e&, we see significant potential in expanding our fintech offerings through e& money and the Careem Everything App to meet these demands.

Mobile banking, digital wallets, and peer-to-peer payment systems are just the beginning. By integrating advanced technologies such as AI, we can offer more secure and transparent financial services. Additionally, personalized financial management tools powered by AI can help consumers make informed decisions about their finances, from budgeting to investing. This not only improves the financial well-being of our users but also positions e& as a leader in the digital finance space, attracting a larger customer base and opening new revenue streams.

Lastly, the future of digital consumer services lies in the creation of integrated ecosystems that seamlessly combine various aspects of daily life. Consumers are looking for convenience and efficiency, and integrated digital ecosystems provide just that by connecting different services and platforms into a unified experience. By providing a holistic digital experience that encompasses entertainment, health, lifestyle services, and more, we remain at the center of our customers' digital lives.

Ultimately and most importantly, we can better serve customers in emerging economies and enable them to engage in more income-generating activities, driving economic growth, innovation, and development. This significantly reduces inequalities and uplifts communities, empowering them to thrive in a more inclusive and connected digital economy.

3. How is the move to becoming a techco shaping your company’s approach to technology innovation? What is the role of technology partnerships in e&’s growth strategy?

HL: Our transition to a techco is not just a shift in strategy but a natural evolution of our core business. Leveraging our legacy as a telco gives us a significant edge, as it provides a strong foundation upon which we build and innovate at scale. Connectivity forms the backbone of the digital economy and serves as the gateway to human empowerment, bridging borders and overcoming socioeconomic divides.

e&’s expertise in telecommunications equips us with the knowledge, infrastructure, and market presence needed to build and seamlessly integrate advanced technologies into our operations. It ensures we can maintain our core strengths while expanding into new, tech-driven domains such as AI, blockchain, fintech, digital services, and more.

At e&, we deeply believe that technological innovation is a key component of our strategy. Our core telecom business is mature and, in many markets, relatively stable, so our focus is best in class customer experience and on efficiency. Consequently, this drives roadmaps telco innovation. Technology is different, is more dynamic, inherently more risky and often more competitive. That means our approach to innovation must broaden both in scope, with new products and services, but also in nature where we focus on growth, experiment more, and have more risk appetite.

Moreover, our commitment to innovation goes beyond addressing the needs of developed countries like the UAE. In the emerging markets, we innovate to efficiently expand the connectivity layer by working on new energy solutions, automation and by tailoring our connectivity toolkit (fibre, mobile, satellite) to best suit the local conditions. Using our expertise and experience from advanced markets, we apply best practices and state-of-the-art technologies in less-developed regions. Our investments in creating robust digital infrastructure in those markets ensure broad access to digital services and allow us, and other parties, to develop digital services. Through those services, we empower communities by providing access to education, healthcare, and economic opportunities, narrowing the digital divide and promoting inclusive growth.

A noteworthy testament to this is e&'s pledge to ITU’s Partner2Connect Digital Coalition. This significant initiative marks a leap in delivering meaningful connectivity to communities. Our $6 billion investment will provide affordable network access and digital services to people across Africa, Asia, and the Middle East between 2024 and 2026. This pledge will continue to push the envelope in highly developed markets like the UAE, which boasts the world's fastest 5G network and highest fibre penetration, by driving the adoption of next-gen technologies such as AI and IoT.

As for the role of partnerships, they evolve to support our transformation. What were once more transactional relations of vendor / client have become multi-faceted partnerships where, beyond transacting, we go to market together, develop intellectual capital, and often compete. Our strategic collaboration with Amazon Web Services (AWS) exemplifies this model. Together, we are building solutions and bringing cloud and GenAI technologies and innovations to the UAE and other countries across the Middle East, Asia, and Africa where we operate.

As a global technology company, we understand the dynamic and interconnected nature of the digital ecosystem. Our interactions with digital ecosystem companies are multifaceted; we often find ourselves in a mutually beneficial relationship where we are both their customers and their partners. This operating model where collaboration, competition, and mutual service coexist is one we are familiar with but also actively embrace as it enables us to stay agile, resilient, and forward-thinking. Partnerships are crucial for e&'s growth, building long-term value, and achieving our vision as a leading global technology group. By collaborating with strategic partners, we can leverage their expertise, accelerate innovation, and enter new markets more effectively. Through strategic alliances, we can access cutting-edge technologies, diversify our portfolio, and scale our operations.

Whether through strategic partnerships, joint ventures, or market competition, this intricate web of relationships is essential to pushing the boundaries of innovation and delivering unparalleled value to our customers and stakeholders.

We have also formed strategic partnerships with leading technology providers, including Microsoft, Oracle, and IBM. With Microsoft, we integrate Microsoft Azure OpenAI’s GPT into our internal operations and processes, enhancing customer experience and supporting the media industry in their daily tasks. Our collaboration with Oracle involves implementing NVIDIA H100 GPU clusters within our Oracle Cloud Infrastructure (OCI) Dedicated Region, housed at e& UAE Data Centers, to localize and advance AI services. This initiative enhances the quality of our offerings throughout our product lineup and operational activities. With IBM, we utilize IBM’s generative AI capabilities (watsonx.ai) to enhance customer service, streamline operations, and drive innovation. Additionally, we leverage IBM’s sustainability software to advance our environmental, social, and governance (ESG) strategy.

As a techco, our aim is to be at the forefront of innovation, leading and developing cutting-edge solutions. We embrace a "buy, partner, build" model to achieve our goals. While some innovations align perfectly with our core strengths, others may not be within our immediate capabilities or may require accelerated development. In such cases, strategic partnerships become essential. We recognize that not everything can be built organically or acquired through mergers and acquisitions alone. By collaborating with key partners, we can effectively accomplish our overall strategy and unlock new opportunities. These partnerships enable us to leverage the strengths and expertise of other industry leaders, ensuring we stay at the cutting edge of technology and innovation.

e& is also part of several notable alliances and initiatives that reinforce our commitment to responsible technology development and digital inclusion. We are a member of the World Economic Forum's (WEF) AI Governance Alliance, a multistakeholder forum bridging industry, government, and civil society to develop responsible and ethical frameworks for AI. Additionally, e& is part of the WEF's EDISON Alliance, pledging to contribute significantly to the mission by striving to improve the lives of 30 million individuals through enhanced network access, financial services, and technology education by 2025. We are working with UNDP on various initiatives under Digital for Sustainable Development (D4SD) program. We also have a long-standing partnership with GSMA, which further amplifies our voice in the global telecommunications and technology sectors.

These partnerships enable us to combine our strengths with the expertise of our partners, fostering innovation and expanding our capabilities. They also help to approach innovation in much more efficient way, by leveraging our partners’ resources and capabilities and focusing ours where we see most impact.

4. e& has made a number of acquisitions in the last couple of years. Will M&A continue to play a role e&’s strategy? If so, why, and where will priorities lie?

HL: e&'s continued growth is underpinned by a well-rounded strategic approach that balances both organic and inorganic paths. On one side, organic growth remains a core focus where we enhance our existing capabilities, innovate new products and services, and expand our customer base by delivering superior experiences and maintaining a strong network infrastructure. On the other, we recognize the strategic value of inorganic opportunities, such as mergers and acquisitions (M&A) and partnerships. Our past acquisitions have been instrumental in accelerating our transformation, entry into new markets, and bringing in cutting-edge technologies, enabling us to innovate at a faster pace and expand our capabilities and service portfolio.

As part of our 4D strategy pillar, "Diversify our portfolio," e& achieved numerous milestones last year, including signing a binding agreement to acquire PPF Telecom assets in Europe, marking significant geographic expansion. We also became the largest shareholder in Vodafone, further solidifying our international presence. On the technological front, e& successfully acquired 50.03% of Careem Technologies, known as the Careem Everything App; this allowed us to cater to a broader customer base and accelerated our digital lifestyle services.

The strategic importance of M&A for businesses like ours cannot be overstated, but when it comes to inorganic growth, our approach is disciplined. We engage in M&A activities not as standalone ventures, but as strategic moves designed to fulfill our broader goals. Every deal we consider undergoes a rigorous evaluation process to ensure each has a purpose, is aligned with our strategic goals, offers clear financial viability and significant return potential, and, most importantly, can create long-term value for our stakeholders.

By acquiring companies with specialized expertise in areas such as AI, IoT, cybersecurity, and fintech, we can bolster our own technological and operational strengths. These advanced skills and solutions are critical for driving our transformation and achieving our long-term goals. It also allows us to deliver new, high-demand services to our customers, keeping us at the forefront of industry advancements.

We will continue to seek out and acquire companies that enable us to accelerate our goal of becoming a leading techco. We are particularly interested in partners who share our vision and purpose, as these collaborations will help us accelerate the development of exceptional customer experiences, build leading digital capabilities, and seize new market opportunities.

While we have substantial capital allocated for network upgrades, mergers and acquisitions, investments, and numerous exciting deal opportunities, we approach M&A with a disciplined mindset. Our investment decisions are always carefully aligned with our strategic pillars and overall group strategy. We're not just looking to invest; we're looking to invest wisely, ensuring each move supports our long-term vision and goals.

5. Your company has stressed the strategic importance of ESG. What are the business advantages of building a more sustainable business and are new technologies helping e& to achieve its sustainability goals?

HL: At e&, we recognize that sustainability is not just an ethical obligation but a strategic imperative that drives business success. With sustainability being a part of our DNA, we realize that strong Environmental, Social, and Governance (ESG) principles offers numerous business advantages that are critical to our long-term growth and resilience.

As we maintain a strong MSCI rating of 'A' and became a constituent of the FTSE4Good index, we remain committed to environmental sustainability and responsible business practices. Sustainability is a crucial pillar of our 4D strategy, driving our commitment to a sustainable future. In 2023, ESG took center stage as we let our actions speak louder than our words. We were the Principal Technology Partner to COP28 in the UAE and, to expand on our pledge to achieve net zero emissions across our operations by 2040 and the entire value chain by 2050, we rolled out multi-faceted strategies focusing on energy efficiency, renewable energy, and responsible procurement. These efforts are aimed at driving down our environmental impact both within our own operations and throughout our value chain. Our near-term targets include a 43% reduction in Scope 1 and 2 emissions across operations and a 25% reduction in Scope 3 emissions across the supply chain and investments.

In line with this, the e& climate transition plan is in development. This will not only cover our 2030 net zero targets but also deepen our understanding and efforts in circularity, biodiversity, and water usage. This comprehensive plan will ensure we address all aspects of our environmental impact as we bolster our sustainable practices.

Modern customers today are increasingly leaning towards businesses that share their values, particularly when it comes to sustainability. This alignment fosters deeper trust and loyalty, making customers more likely to stick with brands that demonstrate a genuine commitment to sustainable practices. This increased customer loyalty translates into higher retention rates and the attraction of new, like-minded customers, which is why integrating sustainability into our business strategy is not just good ethics—it's good business.

Building a more sustainable business also enhances our brand reputation. Companies that prioritise ESG principles are more likely to gain the trust and loyalty of consumers and investors who value sustainability. This can lead to increased customer retention, attracting new customers, and higher investor confidence. This alignment with stakeholder values is crucial for maintaining our competitive edge.

Additionally, sustainable practices lead to cost savings and operational efficiencies. By investing in energy-efficient technologies, reducing waste, and optimising resource use, we can lower operational costs and improve our bottom line. For example, our initiatives to reduce power consumption and leverage renewable energy sources directly contribute to lower utility expenses and long-term financial savings. This approach not only benefits our financial health but also supports global efforts to combat climate change.

Sustainability drives innovation as well. As we strive to meet our ESG goals, we are compelled to explore new technologies and innovative solutions that address environmental challenges and create new business opportunities. This proactive approach to innovation keeps us competitive and at the forefront of industry advancements.

New technologies play a crucial role in helping e& achieve its sustainability goals. Our investment in AI and IoT technologies allows us to monitor and optimize energy usage across our operations. These technologies enable us to detect inefficiencies, predict maintenance needs, and implement energy-saving measures more effectively. Additionally, data analytics help us identify complex patterns and trends, enabling stakeholders to make informed decisions and effectively target actions. Recognizing the importance of data, we are developing a cross-functional non-financial reporting platform in collaboration with our Finance team. This platform will serve as a leading model for reporting sustainability data, which is increasingly crucial to our key stakeholders and investors.

Furthermore, we are helping organizations reduce emissions and eliminate unsustainable practices through our Sustainability as a Service offering. This model paves the way for greater sustainability by automating operations, enabling data-driven decisions, diminishing environmental footprints, and uplifting community welfare.

Our collaborative efforts and partnerships further amplify our sustainability impact. As a member of WEF’s Stakeholder Capitalism Metrics, we join more than 100 global companies aligning their performance reporting with ESG indicators, consistently tracking our contributions to the United Nations Sustainable Development Goals (SDGs). Our participation in initiatives such as the GCC Sustainability Alliance and Green Digital Action Initiative has driven valuable conversations, collective action, and knowledge sharing. We’re further reinforcing our commitment to global sustainability standards and initiatives through our involvement with ITU and collaboration with the United Nations Development Programme (UNDP), where we discuss and develop ways to harness the power of AI for sustainable development.

Our ESG strategy encompasses a holistic approach, focusing not only on environmental sustainability but also on social responsibility and good governance. Our diverse workforce reflects our commitment to inclusion. We've made strides in gender diversity, targeting 30% female representation in the UAE and actively promoting DEI initiatives. We're also dedicated to accessibility, partnering with organizations to create a more inclusive workplace for people with disabilities. Our investments in digital infrastructure and accessibility initiatives aim to reduce inequalities and empower communities in various markets.

Through the ITU’s Partner2Connect Digital Coalition, we are committed to investing USD 6 billion from 2024 to 2026 to enhance affordable and accessible digital network services across the Middle East, Africa, and Asia. As part of the EDISON Alliance, our goal is to positively impact the lives of 30 million people by 2025 through improved network access, financial services, and technology education. These initiatives are aligned with our focus on digital inclusion, which is crucial for achieving the UN Sustainable Development Goals (SDGs). Digital technologies are integral to advancing over 70% of the SDG targets, as they provide the necessary tools for education, healthcare, and economic development, particularly in underserved regions.

By championing digital inclusion, we aim to uplift individuals and communities, thereby stimulating global economic growth. The urgency of addressing the digital divide is evident, as one in three people globally lacks internet access, limiting their opportunities and hindering progress toward the SDGs. Through our investments and partnerships, we are dedicated to ensuring that everyone can build their digital futures, ultimately contributing to a more equitable and sustainable world.