The UK government has ordered Vodafone to appoint a National Security Committee to oversee sensitive work. The demand comes after Etisalat, the international telecoms group that is controlled by the government of the United Arab Emirates, increased its ownership stake in Vodafone to 14.6 percent and entered into a ‘Strategic Relationship Agreement’ that gives them significant influence over the British-headquartered telco. Etisalat CEO Hatem Dowidar joined Vodafone’s board in April 2023 as part of this evolving relationship between the telcos.
The national security instruction comes in the form of a notice issued by the UK Cabinet Office on January 24.
6. The final order requires the Parties to:
i. Meet certain notification requirements in relation to any alteration to, or termination of the terms of the Strategic Relationship Agreement;
ii. Meet certain requirements relating to Vodafone’s board composition, board committee membership, and board committee functions;
iii. Establish a National Security Committee to oversee sensitive work that Vodafone and its group perform which has an impact on or is in respect of the national security of the United Kingdom;
7. The Secretary of State considers that the Final Order is necessary and proportionate to mitigate the risk to national security.
The proper name of Etisalat is Emirates Telecommunications Group Company PJSC. In 2022 they restyled their corporate brand and adopted the peculiar name of “etisalat by e&”. The inclusion of the word ‘and’ within their brand is meant to signify the intention to expand the range of services offered by the group. The business has stated an ambition to become a global technology conglomerate with interests in cybersecurity, artificial intelligence, the digital transformation of governments and ‘mega projects’.
The UK government gave itself new powers to intervene in the ownership and management of strategically important businesses with the passing of the National Security and Investment Act in 2021. The act has previously been used to review the national security implications of Altice increasing its stake in BT.
