Cablegate: Uae's Dhabi Group to Invest $1 Billion In

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS DHAKA 004394

SIPDIS

DEPT FOR EB/CBA
DEPT FOR SA/PAB

E.O. 12958: DECL: N/A
TAGS: EINV BEXP ECON ETRD BG
SUBJECT: UAE's Dhabi Group to Invest $1 Billion in
Bangladesh

1. The Dhabi Group of the United Arab Emirates
will invest about $1 billion in Bangladesh in
several sectors including telecommunications,
hospitality, pharmaceuticals, and infrastructure.
Their commitment is contained in a memorandum of
understanding with the Board of Investment (BOI),
signed September 1 in Dhaka.

2. Dhabi has already applied for a GSM cellular
license to operate mobile telephony in Bangladesh
on a countrywide basis and has agreed to invest
over $500 million in the telecommunication sector
alone. Dhabi also plans to set up a wholly-owned
pharmaceuticals unit. The group will prepare a
detailed investment proposal within a few months.

3. Dhabi Group Chairman and UAE's education
minister Sheikh Nahayan Mabarak Al Nahayan
described Bangladesh as an investment friendly
place during his meeting with Prime Minister
Khaleda Zia. Al Nahayan's trip followed two high-
profile visits in the last one year - one by Saudi
prince Walid bin Talal and the other by Tata Group
head Ratan Tata.

4. The BOI chairman told the embassy that the
Dhabi Group investment is further proof that
Bangladesh has an attractive investment policy and
climate. He projects $10 billion in FDI in the
next two years, based on major projects already
covered by MOU's or in the final stages of
discussion. Total FDI in Bangladesh during FY 2004
(July-June) was $660 million, against a target of
$600 million for the same period.
Chammas

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