Private companies are permitted to operate local area networks (LANs) in certain free zones and real estate developments, such as Cisco Systems'in Dubai Media City and UK firm Marconi Group'sin Dubai Marina (see Interview, page 6). However, these networks are not regulated and it is understood that the new body is predominantly intended to oversee their role within the market. The UAE is obliged to open up the sector to competition by 2005 under its agreement with the World Trade Organisation. The announcement of the decree led to a sharp 8 per cent fall in Etisalat's shares.

The company - the first to introduce third-generation (3G) services in the Middle East - has played down concerns that its monopoly is under threat. 'It's a vague document aimed at getting the ball rolling for liberalisation,' an Etisalat source told MEED following the announcement. The company posted a 16.7 per cent rise in net profits to AED 2,873 million ($782 million) in 2003.