US embassy cable - 05DHAKA4394

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