UAE's Dhabi Group to Invest $1 Billion in

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