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


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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.





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Etisalat

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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