BLUE LANTERN PRE-LICENSE CHECK - APPLICATION 050209929

UNCLAS ABU DHABI 000272 SENSITIVE SIPDIS FOR PM/DTCC FOR RACHAEL-THERESE S. JOUBERT-LIN E.O. 12958: N/A TAGS: ETTC KOMC AE SUBJECT: BLUE LANTERN PRE-LICENSE CHECK - APPLICATION 050209929 REF: STATE 5426 1.(SBU) In February 2009, EconOff conducted site visits to consignee Tek Signals and End-User Etisalat to confirm the bona fides of the proposed transactions of the reftel demarche. Tek Signals -------------- ¶2. (SBU) On February 10, EconOff conducted a site visit to Tek Signals and met with Managing Partner (Pakistani national),Mr. Tariq Raja. Tek Signals, which is owned by a Lebanese national, Mr. Yassir Shaheen, established its business in the UAE in January 1990, but started operating in 1994. Its head office is in Abu Dhabi and branch office in Dubai Media City. The firm has business in other countries in the region, including Lebanon, Jordan, Kuwait, Kazakhstan, Oman, Pakistan, Qatar, Syria and Saudi Arabia. Tek Signals employs over 100 employees, primarily telecom technicians, including Pakistanis, Indians, Lebanese and Philippinos. Its annual revenue is estimated at USD 40 million. ¶3. (SBU) Raja said Tek Signals regularly procures various telecommunication articles for assembly and installation in the UAE and the region. The firm maintains an "Integration Facility" and warehouse at Meena Zayed Port in Abu Dhabi. According to the firm's Abu Dhabi business license, its core business includes on-shore and off-shore oil and gas field IT services, computer trading, precise electronic devises trading, trading of broadcasting, television and movie theatres equipment and systems, trading of gauging instruments and control equipment. It provides solutions in fields of broadcasting, audio/video professional systems, telecommunications, test and measurements, electronic media, educations and technical services to major regional clients, including Etisalat, UAE Armed Forces, and local, regional and international Radios and TV stations, newspapers and universities. ¶4. (SBU) Mr. Raja provided Econoff with a copy of his commercial license from the Abu Dhabi Department of Economic Development (DED),valid until January 4, 2011, Renewal Registration Certificate from the Ministry of Economy, valid December 29, 2010, and a membership certificate from the Abu Dhabi Chamber of Commerce and Industry (ADCCI),valid until February 15, 2010. The company name as mentioned in the official registration documents is "Tek Signals S.A.L. (Off Shore)". Mr. Raja confirmed his brokering business of USML articles with ETISALAT, and provided Econoff with a copy of the purchase order number 1027138 dated January 10, 2009, with the net total value of USD 35,150. The items of this purchase order included dual polarized log periodic antenna 1.0-265.5GHz, type 201302X, and broadband omnidirectional slant linear biconical antenna, 1type N Connector 0.5-18 GHZ type 201563-3. ¶5. (SBU) Mr. Raja is very much familiar with the restrictions against the unauthorized re-export or transfer of U.S. origin defense articles. He told EconOff that he regularly checks online references of USDOC/BIS denied parties list before entering into business with unknown firms. Raja said he is often approached by potential new customers, but he works very hard to ensure the company only works with legitimate parties. -------------- Etisalat -------------- ¶6. (SBU) ETISALAT (Emirates Telecommunications Corporation) is a hundred per cent UAE-owned company, and 60.03 per cent of its capital is owned by the Emirates Investment Authority, a federal government investment entity. ETISALAT is the UAE's leading telecommunications services sector and former telecom monopoly. It maintains an exclusive monopoly on fixed lines, in addition to millions of cellular and internet subscribers. ETISALAT was established in Abu Dhabi in 1976, and currently has branches across the UAE and in 18 Asian and African countries, and over 100 million subscribers. The firm has over 10,000 employees, of various nationalities. ETISALAT, which is considered one of the key sources for the UAE federal budget, reported USD 9.394 billion in 2009 revenues. ¶7. (SBU) On February 15, EconOff conducted a site visit to ETISALAT's headquarters in Abu Dhabi to confirm reftel transaction. EconOff met with Senior Vice President - Contracts and Administration, Mr. Mohammad Harib. The 34 employees in the tendering/contracts department, 17 percent of whom are Emirati, manage a budget of approximately AED 2.5 m annually (USD 680,000), according to Harib. The company holds approximately AED 700 m (USD 190m) in spare parts inventory at controlled access warehouses across the country. Harib confirmed this purchase order of USML items from Tek Signals and showed EconOff samples of other purchase orders with Tek Signals. Harib said he fully understands the restrictions against the unauthorized re-export or transfer of U.S.-origin defense articles. OLSON