The UK government has ordered Vodafone to take steps to manage risks as it has concluded that UAE-based telecoms company e&’s stake in mobile giant poses national security risks amid government contracts and cyber security.

The move makes e& Vodafone’s largest shareholder, holding a 14.6% stake in the company.

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However, according to the UK Cabinet Office, Vodafone should form a national security committee to oversee work that could have an impact on security.

E& currently operates in 16 countries across the Middle East, Asia and Africa.

Vodafone since an initial investment in May 2022, however, in May last year, the pair agreed to announce their strategic relationship that “brings the two operators closer together in certain aspects of their businesses”.

As a result, the UK telecoms giant announced e&’s CEO Hatem Dowidar would join its board as a Non-Executive Director.

A Vodafone spokesperson said: “We are pleased to have received clearance in our home market for our strategic relationship agreement with e&, and for e& to take a seat on our board.”

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