West Asian Project

British firm to design terminal airspace around Jebel Ali International Airport

2006-06-21T07:39:00.000-07:00

NATS, the UK's leading air traffic management provider, has won its largest-ever overseas airspace design contract at what will be one of the world's largest international airports in Dubai.

The contract is to design terminal airspace around Jebel Ali International Airport, which will have six runways and an annual capacity of 120 million passengers. The contract was awarded to NATS by the UAE Government with work commencing in early July.

NATS will work closely with the local aviation authorities to design airspace that will offer flexibility to optimise operations for the new airport and between civil and military traffic.

Lawrence Hoskins, Managing Director of NATS’ commercial business, said “This is the largest overseas contract of its kind that NATS has won and we are delighted to have the opportunity to showcase our expertise at the world’s largest international airport.

“We have worked in collaboration with a number of civil aviation departments within the UAE and this project is very much aligned with our strategy to create partnerships. We look forward to successfully delivering the airspace design in January prior to the airport becoming operational in December 2007.”

The British company recently won a landmark contract worth more than £700 million to provide air traffic control systems to the UK’s Ministry of Defence, the first of its kind to enable full integration between civil and military en route air traffic control.

Iran Bans the Economist Over Gulf Map

2006-06-18T08:00:00.000-07:00

Iran has banned The Economist magazine for describing the Persian Gulf as merely ``the Gulf'' in a map published in the latest edition, state television reported Wednesday.

It is the second time in two years that Iran has banned such an international publication for failing to use the term ``Persian Gulf'' in a map. In 2004, it banned the National Geographic atlas when a new edition appeared with the term ``Arabian Gulf'' in parentheses beside the more commonly used Persian Gulf.

Tehran believes in aggressively defending the use of the historical term Persian Gulf. It regards the name Arabian Gulf, used by some, as a name dreamed up by Arab nationalists.

While Iran dominates the eastern side of the waterway, the western shores are held by Saudi Arabia, the United Arab Emirates and other countries.S

tate television reported late Wednesday that the Ministry of Culture and Islamic Guidance had banned the importation and distribution of current and future editions of The Economist. The ban would only be lifted when the journal used ``Persian Gulf,'' the ministry was quoted as saying.

In London, where The Economist is published, the magazine said it would stand its ground.

``We've used 'the Gulf' for a long time, and we have no intention of changing it at the moment,'' a spokeswoman for The Economist said, speaking on condition of anonymity in keeping with the magazine's policy.

She said the magazine sells about 750 English-language copies in Iran per week.

The current week's issue runs an article on the Iranian nuclear dispute titled: ``Iran and nuclear diplomacy: Risky Bargaining - Should Iran's latest threat to stop oil exports be taken seriously?'' The offending map shows Iran and its neighbors, with the waterway designated ``the Gulf.'

'Iran lifted its earlier ban on the National Geographic atlas after the publishers decided the following month to drop the term ``Arabian Gulf'' in favor of a note, printed in the middle of the Gulf, that said while most people call it the Persian Gulf, ``this body of water is referred to by some as the Arabian Gulf.''

Daimler-Chrysler to invest $5.8bn

2006-06-17T20:40:00.000-07:00

Daimler-Chrysler and Coastal Group has decided to invest $5.8 billion in Pakistan by starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars of various types to create a vendor industry.

The group would set up their plant on 1,200 acres of land near Shaikhupura provided by the government. The investment would create 5,000 jobs directly and indirectly, said Umar Ahmed Ghumman, minister of state for Privatisation and Investment and chairman Board of Investment (BoI) at a news conference at the Parliament House here on Thursday.

Coastal Group would make all the financial investment in the project, while Daimler-Chrysler would provide technology transfer.

It is to mention here that on May 7, 1998 two of the world's leading car manufactures, the German Daimler-Benz AG and the USA-based Chrysler Corporation, announced the largest industrial merger in history. The new company, called Daimler-Chrysler, became the world's fifth largest car maker with combined revenues of around $130 billion, a combined operating profit of around $7 billion, and a combined workforce of more than 420,000 employees.

The minister said the group would export products to neighbouring countries as well as to the Gulf region, which would earn billions of dollars in foreign exchange for Pakistan. A training institute conforming to the international standards would also be established in Pakistan to update the technical knowledge in the country.

An industrial estate for vendor industry would also be set up to locally produce spare parts as per European standards for local and export purposes, Mr Ghumman said.

Black cabs

Responding to a question about the reported violation of rules in import of black cabs from the United Kingdom, Mr Ghumman said: "We are importing duty-free 300 black cabs for testing purposes. The government had to give this facility in order to invite $1 billion investment from Prime Transport Limited to assemble, manufacture and operate London taxis in Pakistan under joint venture partnership with LTI of UK and ST Electronics of Singapore."

The minister said 150 of the black cabs would be tested in Karachi, 100 in Lahore and 50 in Islamabad so that to keep in mind the local conditions while manufacturing the cabs locally.

The minister said that as per the agreement, the London taxis would charge Rs11 per km which was reasonable. To a question, he said the manufacturing plant of black cabs was being set up in Gharo, near Karachi on 300 acres. The plant had to be shifted to Pakistan because the manufacturing of a single black cab required 43,000 sterling pounds in the UK compared to the 22,000 sterling pounds in Pakistan.

He said the government wanted to change the culture of taxis in Pakistan by revolutionising, introducing and implementing the most economical, dependable, comfortable and safe satellite-controlled taxi service in the country.

Dubai has 30,000 construction cranes

2006-06-17T18:11:00.000-07:00

About 30,000, or 24 per cent of the world's 125,000 construction cranes, are currently operating in Dubai, according to the organisers of the Conmex construction machinery exhibition.

Demand for construction related machinery, equipment and vehicles is expected to continue rising in the Middle East, especially in the UAE, due to the continuing construction and real estate boom.

In 2003, the UAE's market for heavy construction machinery stood at $165 million, road construction machinery at $142 million and earth moving machinery at $125 million. The size has increased by 15-20 per cent since then.

Annual market demand for used machinery in the Middle East is valued at over Dh5 billion.

As of last April, there was almost $300 billion worth of projects underway in the UAE, according to a recently published report.

Although the concentration of construction activities in the UAE is in Dubai and Abu Dhabi, the other emirates are not far behind."The entire GCC region, particularly the UAE, is currently attracting astronomical investments in the real estate and the construction sectors," said Saif Al Midfa, director-general of the Expo Centre Sharjah, the organisers of Conmex, the exhibition for construction machinery and equipment.

Conmex is being organised by the Expo Centre Sharjah with the support of the Sharjah Chamber of Commerce and Industry.
"Construction activity in the region is currently at its peak as a result of which the demand for related machinery, equipment and vehicles is experiencing a sharp rise.

"The indications are that there will be no let-up in this trend," he added.

Dubai, which continues to be the centre of construction activities, has experienced an increase in real estate investment from Dh11 billion in 2000 to Dh165 billion now.

Multi-billion dirham projects are also under way in Abu Dhabi. The UAE capital is expected to spend Dh47 billion on construction related activities in the next two years.

Within the northern emirates, Sharjah has been at the helm of the construction frenzy.

The emirate recently committed Dh3.5 billion towards developing its infrastructure.

UAE property developer forays into Jordan

2006-06-07T10:37:00.000-07:00

Reputed UAE real estate developer, Tameer Properties has announced the commencement of its Jordanian subisidiary, Jordan Company for Real Estate Development (Tameer) on Amman Stock Exchange. Al Mal Capital, the lead manager and bookrunner for the international tranche of the share placement, has indicated that Tameer shares, originally priced at one Jordanian dinar now value 2.75 dinars in volume of more than 1.3 million shares.

“In regional markets that have presented challenges, the success of the Tameer IPO is an example of Al Mal Capital’s ability to deliver a solid foundation of investor capital to compelling and innovative businesses,” said Naser Nabulsi, executive chairman of Al Mal Capital.

Tameer’s IPO for 53 million dinars, or 25 percent of its capital, was 14 times oversubscribed and generated more than 760.5 million dinars($ 1 billion) in subscriptions. With 70 percent of the funds coming from international investors, Tameer is set to be the leading real estate developer in Jordan . The company is currently involved in a number of major residential and tourism projects in the country.

China geared toward energy sector co-op with the I.R

2006-06-07T10:03:00.000-07:00

Moving beyond traditional cooperation in the military and political arena, China and the I.R of Pakistan are set to expand ties in energy sector with Beijing contemplating building a 21 million tonne refinery at Gwadar port.

Intelligence input suggests that Beijing is considering development of the Gwadar Port Energy Zone in the south-west Pakistani province of Baluchistan and feasibility of constructing an oil refinery of 21 million tonnes capacity.

Also on the cards is China undertaking oil and gas exploration projects in Pakistan, besides examining the economic viability of the energy corridor, industry sources said.

China, they said, would also review initial plans to shift excess capacity in the petroleum industry to Dubai because of the new option of Gwadar becoming available. The Gwadar Port Energy Zone's potential to attract an estimated foreign investment of 12-13 billion USD is an incentive.

The China-Pak Energy Trade Cooperation Promotion Association under China's Ministry of Civil Affairs and China-Pak Joint Investment Company to finance these projects was being considered.

Eventually, the Gwadar port would be accessible for Chinese imports and exports through overland links that would stretch to and from Karakoram Highway in Pakistan's Northern Areas that border China's Muslim-majority Autonomous Region of Xinjiang.

Sources said Gwadar port would provide a stable and proximate point of access to the Gulf ports. Just 250 miles from the Straits of Hormuz, through which nearly 40 per cent of the world's oil supplies flow, the port is strategically located to serve as a key shipping point in the region.

The port would also provide the landlocked Central Asian republics, Afghanistan, and the Chinese Xinjian region with access to the Arabian Sea.

A road from Gwadar to Saindak, which is currently under construction and runs parallel to the Iran-Pakistan border, will be the shortest route between Central Asia and the Arabian Sea.

China is the world's fastest growing economy, followed by Pakistan.

After Iran, Russia - Pakistan announces financial assitance for Palestianians

2006-06-07T09:50:00.000-07:00

Pakistan Wednesday announced financial assistance for the Palestinians while reiterating full support to the Palestinian cause of achieving an independent homeland.

The announcement came as visiting Palestinian Foreign Minister Mahmoud Al-Zahar met his Pakistani counterpart Khurshid Mehmud Kasuri here.

Pakistan is the third country after Iran and Russia to have announced financial assistance for the Palestinians.

Al-Zarar arrived in Islamabad Wednesday on a two-day visit following the formation of the Hamas government in the Palestinian territories.

An official statement issued after the meeting quoted Kasuri as expressing Pakistan's complete solidarity with the Palestinians in their quest for 'statehood.'

He said Pakistan remained steadfast in its support to the Palestinian cause, which seeks complete withdrawal of Israeli troops from the occupied territories and the establishment of an independent Palestinian state.

Pakistan established its first-ever direct contact with Israel in September 2005 in Turkey.

The meeting between Pakistani and Israeli foreign ministers triggered speculation about possible recognition of Israel by Islamabad.

But Pakistani leaders, including President Pervez Musharraf, have often said Islamabad would continue to support an independent 'Palestinian state with al-Quds (Jerusalem) as its capital' and would not recognise Israel until fulfilment of this Palestinian popular demand.

Abraaj, BMA Capital Launch $300m Private Equity Fund

2006-06-07T09:40:00.000-07:00

Abraaj Capital, one of the leading private equity firms in the Middle East, North Africa and South Asian region and BMA Capital, one of the most prominent investment firms in Pakistan’s financial markets have launched a US$ 300 million fund, the Abraaj BMA Pakistan Buyout Fund L.P. It is the largest Private Equity fund ever to target investments in Pakistan.

The Abraaj BMA Pakistan Buyout Fund will target an internal rate of return of 30% and will pursue a broad-based and opportunistic strategy, rather than a sector focused strategy. The fund will concentrate on sectors with high growth rates and proven business models. It will also look into fragmented sectors with room for consolidation, with significant barrier to entry and with stability of business cycle and resistance to recession.

Sheikha Lubna bint Khalid Al Qasimi, UAE Minister of Economy, “UAE and I.R of Pakistan enjoy a special relationship as highlighted by HH Sheikh Mohammed’s latest visit to Pakistan. Pakistan offers tremendous investment opportunities and UAE is keen to play an important role for Pakistan’s development. Abraaj BMA Pakistan Buyout Fund is a step in this direction which I support whole heartedly.”

Commenting on the announcement, Arif Naqvi, CEO & Vice Chairman, Abraaj Capital said: “We are delighted to announce our latest buyout fund dedicated to Pakistan. Pakistan’s economy is the second fastest growing economy in Asia. The Government’s increasing focus on privatisation and the extremely conducive regulatory environment for foreign investment present great opportunities for business and we are delighted to be part of it.”

Farrukh Khan, CEO, BMA Capital, said: “We are extremely pleased to partner with Abraaj Capital in this pioneering venture. We see a number of consolidation opportunities in many fragmented industries such as insurance, banking, basic materials, power, automotive parts, telecom, textiles, etc. With BMA’s deep knowledge and understanding of Pakistan and involvement in landmark transactions in Pakistan and Abraaj Capital’s regional expertise in private equity, we intend to focus on ‘buy & build’ initiatives, under-leveraged companies with quality assets or stable cash flows and under-managed or under-capitalized assets, adding significant value for both our partner companies and shareholders.

Iran hints of Gulf supply disruption

2006-06-05T17:06:00.000-07:00

Iran's supreme leader that his nation could jeopardize the world's oil supply if the West attacked Tehran over its nuclear program.

Light, sweet crude for July delivery rose $1.02 to $73.35 a barrel in Asian electronic trading on the New York Mercantile Exchange, midafternoon in Singapore. The contract rose Friday to $72.33 following the kidnapping of eight foreigners working on a drilling rig off the coast of Nigeria. The workers were released Sunday.

July Brent crude futures on London's ICE Futures rose $1.03 to $72.06 per barrel.

Iran's supreme leader, Ayatollah Ali Khamenei, who has the final say on all state matters, addressed Western nations in a speech Sunday, saying: "If you make any mistake (attack Iran), definitely shipment of energy from this region will be seriously jeopardized.

"Khamenei said the United States and its allies would be unable to secure oil shipments passing out of the Persian Gulf through the strategic Strait of Hormuz to the Indian Ocean.

"The price surge is a knee-jerk reaction to the remarks made by Iran's supreme leader," said Victor Shum, energy analyst with Purvin & Gertz in Singapore. He noted, however, that Iranian President Mahmoud Ahmadinejad had indicated a breakthrough in negotiations was possible, but rejected a precondition to talks.Contrary to Khamenei's remarks, other Iranian officials have repeatedly ruled out using oil as weapon. Iran is the world's fourth-largest oil exporter and has the second-largest reserves in the Organization of Petroleum Exporting Countries.

The kidnapping of oil workers in Nigeria also reminded traders that the African nation's oil supply is not secure.

"These geopolitical events support high prices in the near term," Shum said.Also Monday, gasoline futures gained 2.75 cents to $2.2250 a gallon while heating oil prices rose 3.91 cents to $2.0536 a gallon. Natural gas prices were up 15.7 cents to $6.780 per 1,000 cubic feet.

Oil prices gained last week despite rising U.S. inventories combined with an expected decision by the Organization of Petroleum Exporting Countries to leave its output quotas steady.

OPEC's current production ceiling is 28 million barrels a day. Most cartel members are already producing all they can to take advantage of high prices. The lack of spare capacity around the world has led traders to build a premium into prices to account for a possible supply disruption that won't be offset.

Emaar unveils $2.4bn Pakistan venture

2006-06-04T11:16:00.000-07:00

Emaar Properties, the leading property developer, today announced three real estate developments in the cities of Islamabad and Karachi in Pakistan.

The projects will include a series of master planned communities that will set new benchmarks in commercial, residential and retail property within Pakistan.

The nation's capital, Islamabad, is home to two Emaar Pakistan projects: the Highlands and Canyon Views. With 1,500 acres between them the Islamabad communities offer 9,000 luxury single-family town homes and villas in a range of architectural styles with easy access to amenities including retail centres, community club houses, parks, lakes, schools and mosques.

Karachi will be home to Crescent Bay, a 75-acre development featuring high- and mid-rise towers for residential and commercial use, a shopping centre and five-star beachfront hotel. The towers will contain approximately 4,000 residential apartments.

Mohamed Ali Alabbar, Chairman, Emaar Properties said Pakistan represented a vital link in Emaar's global and regional plans. 'These current projects are only a small and initial part of our commitment to providing world-class living and infrastructure in Pakistan,' Alabbar said.He added: 'Pakistan will play an important role in the development of Emaar's reputation in Asia, and remains one of our most significant commitments outside of the UAE.'

The Highlands development is located within the Defense Housing Authority Islamabad (DHAI) Phase 1 extension and Canyon Views is within the DHAI Phase 2 extension. Offering approximately 50 separate community districts with its own individual identity, a spectrum of architectural styles ranging from Mediterranean, Tuscan, Mughal, Arabic and Spanish, will be available to select from.Crescent Bay, located within Karachi's DHA Phase 8 and in close proximity to the DHA golf course, will also offer individual architectural styles for each tower within the development. All three projects are expected to be completed in the next four to five years.

Mohammed Al Falasi, Managing Director of Emaar Pakistan said: 'Our goal is to create a series of exciting developments that set new standards for commercial and residential property. Highlands, Canyon Views and Crescent Bay will set these standards and are the first of many projects that we have planned for other cities in Pakistan, which we will be developing over the next few years.

'World famous master planners on the Crescent Bay development are Halcrow International with architects Norr and Holford while master planners WATG, RNL and JZMK are working on Highlands and Canyon Views projects.

Architects for the Islamabad projects are Mazen N. Issa, Alexandra Hayes, Bassenian Lagoni and Saunders & Wiant. The master planners have brought inspiration from the world's best designed residential communities to Pakistan - offering another Emaar signature landmark to the region.

Al Falasi added: 'Furthermore, we are aiming to preserve 20 per cent of the project area as green space, offering a haven of peace and natural beauty in the middle of a thriving community.

'Emaar's innovative offering of self-contained, amenities-rich communities have created lifestyle options that have been the first choice for many residents around the world. The integration of schools, health facilities, parks, landscaped grounds and retail centres into master-planned golf, equestrian and marina-themed lifestyles has proved a winning combination.

Is Qatar the next Dubai?

2006-06-04T10:52:00.000-07:00

FIVE times a day, the Muslim call to prayer echoes through the mazelike passageways of Souk Waqif in Doha, the capital of Qatar. Projected from slender minarets that dot Doha, a low-lying white city along the Persian Gulf, the warbling, ages-old Arabic incantation reverberates through stalls selling everything from traditional khanjar daggers to baby strollers. When it arrives, merchants in long, white gutras and checkered headdresses kneel toward Mecca and pray.

Lately, however, the call to prayer has been competing with a much more modern sound, one that heralds a bold new direction for this languid city of 400,000: the sound of construction. Lots of it.

According to the Qatar Tourism Authority, more than 100 buildings and towers are going up in Doha, whose modest skyline is currently punctuated by about two dozen high-rises. Cranes fill the hot sky. Skeletal hotels, resorts and financial centers ring Doha Bay. And from every corner, a symphony of earth-moving equipment and power tools hums the theme of one of the world's richest countries (as measured by gross domestic product per capita) striving to become a world-class business and leisure center.

"Qatar is rapidly changing," said Nick Bashkiroff, development director for the country's leading construction firm, United Development Company, from an office building overlooking Souk Waqif. On the wall of the conference room, two floors above a Ferrari dealership, hangs a satellite photo of a megaproject embodying Qatar's bold new dreams for international recognition: the Pearl, a $2.5 billion, 985-acre artificial island loaded with five-star hotels, two million square feet of high-end shopping and "beach clubs like you would find in the South of France," Mr. Bashkiroff said.

The Pearl, whose first phase will debut next year, is just one of the Xanadu-like attractions suddenly appearing as if from a rubbed Aladdin's lamp. Poof! A luxury resort resembling an ancient Arabian city, the Sharq Village & Spa, rises along the beachfront. Poof! The modernist Museum of Islamic Arts, designed by I. M. Pei, sprouts along the bay. Poof! The nation's largest shopping center, a monument of Italian Renaissance details traversed by Venetian canals, begins its ascent.

As the boldface newspaper headline optimistically shouted from the March 1 edition of The Gulf Times, "Qatar Set for Boom Decade."

Late out of the tourism starting gate, Qatar (pronounced CUT-er) is suddenly leading a charge of gulf nations into the roughly half-trillion-dollar global travel market. These oil-blessed lands are seeding their desert expanses with golf courses, Western-style luxury hotels, five-star resorts, commissions for celebrity architects and enormous luxury communities like the Pearl.

Why are these small and conservative Islamic countries suddenly courting the world's luggage-rolling masses after decades of indifference? One reason lies underground. With economies centered on petroleum — and with supplies slowly dwindling — many oil-dependent nations are scrambling to diversify their revenue streams.

But the more immediate inspiration lies next door: the bling-bedecked Cinderella story of the travel industry, the emirate of Dubai.

"Dubai is without question leading the world in tourism development," said James Wilson, chief executive of Dubai's Nakheel corporation, a land-development firm owned by the Dubai's royal family. Sipping cappuccino in a panoramic sun-drenched restaurant atop the world's tallest and possibly most luxurious hotel, Dubai's "seven-star" Burj Al-Arab, Mr. Wilson scarcely has to gesture around him to make his point.

Peering into the Persian Gulf below reinforces it. Sprawled ostentatiously to the left lies the Palm Jumeirah, a vast palm-tree-shaped artificial island that will house around 30 five-star hotels. To the right looms the World, an archipelago of hundreds of artificial islands arranged like a flattened map of the Earth.

Thanks to such over-the-top concoctions and other audacious projects on the horizon — the world's tallest building, the world's largest amusement park and two of the world's largest shopping malls — Dubai has exploded from a dusty backwater into a fast-moving global playground that draws some five million tourists a year.

Once aloof, Dubai's gulf neighbors "are looking at what Dubai did and how Dubai did it," said Craig Senior, a former Doha hotel executive who is now Middle East director of sales and marketing for Rezidor SAS, which oversees Radisson hotels.

Iran goes to World Cup with high hopes

2006-06-04T10:09:00.000-07:00

The Iranian national football team on Sunday arrived in Friedrichshafen in southwestern Germany, where they will be based during the World Cup.

A few dozen Iranian fans welcomed the team at Friedrichshafen airport, clapping hands and cheering as the players stepped out onto the tarmac wearing grey suits and blue shirts.
German authorities have promised strong police protection for the Iranian side, and a local police spokesman said there were "plain clothes policemen" at the airport.

The team was surrounded by children asking for autographs as they made their way through the terminal before leaving by bus for a luxury hotel in Schnetzenhausen, a small town northwest of Friedrichsafen on the shores of Lake Constance.

It has been expected that the team's arrival could be marked by protests against the hardline regime of Iranian President Mahmoud Ahmadinejad, but the police said they did not know about any planned demonstrations.

The Leftist Central Council of Jews in Germany is planning however to hold a protest at the World Cup football match between Iran and Mexico in Nuremberg on June 11.

Mahmoud Ahmadinejad has called for Israel to be wiped from the map and has repeatedly denied the Holocaust. He has said he will not be attending the World Cup.
The team has high hopes to reach, for the first time in its football history, the second round of the games.

"Inshallah (so God will), we will reach the second round and make our country and people happy and proud," the head of the Iranian Football Federation (FFI), Mohammad Dadkan, said.
Following a 2 -2 draw with Croatia and a 5 - 2 victory over Bosnia-Herzegovina, enthusiasm is very high, accordingly also expectations without, however, considering that Iran's Group D opponents Mexico and Portugal play at the highest world level and even Angola eliminated Nigeria from getting to the World Cup.

"We should not forget that on our way to the World Cup, we even had problems with countries like Jordan and Qatar, let alone Mexico and Portugal," said national team striker Vahid Hashemian, who plays for German team Hanover 96.

Defender Rahman Rezaei, who plays for FC Messina in Italy, also tried to damp down the high expectations by saying that the games in Germany would be totally different from the warm-ups "and we would have to fight for every inch."

Iran could not play with its ideal formation since the World Cup qualification game against Bahrain in June last year due to injuries to various players and coach Branco Ivankovic was forced to experiment on several positions.

Even now key players like Mehdi Mahdavikia, Ali Karimi, Fereydoun Zandi and Hashemian are still injured. Hamburg SV midfielder Mahdavikia has to wait for his final medical tests to see whether he will be able to join the team in the opening game against Mexico on June 11 in Nuremberg.

"It is true that injuries have forced us not to present our first team in the warm-up phase, but I am confident that all my players will be fit by June 11 and that the team harmonised by then," Ivankovic said.

FFI President Dadkan said that Iran wanted to transfer the message of "peace and friendship" to the world during the games.

UAE to invest over $30b in Pakistan

2006-06-04T08:37:00.000-07:00

Dubai is poised to become the biggest foreign investor in Pakistan following the announcement of property, financial service and infrastructure projects worth billions of dollars.

The Pakistani Government yesterday welcomed the plans - revealed during a visit by Sheikh Mohammad bin Rashid Al Maktoum, ruler of Dubai, to Islamabad - as a significant vote of confidence in the country's two-year-old economic recovery and said Pakistan would take extraordinary measures to facilitate UAE investors.

"There is an excellence in Dubai which can be exported to Pakistan," Shaukat Aziz, Pakistan's prime minister, said yesterday.

"These investment plans run in to several billion dollars - the largest investment of its kind and something which signifies a great deal of investor confidence."

Details of the projects have not been released but some reports say business groups Emaar and Dubai World are poised to invest in property projects worth more than $30bn (€23bn, £16bn).

Sultan bin Sulayem, chairman of Dubai World, said the company planned huge investment in various sectors in the main cities of Pakistan. Dubai World controls Nakheel, the property developer behind Dubai's three man-made Palm islands, and DP World, the container ports company.

Dubai Islamic Bank has also sought permission from Pakistan's Central Bank to establish between 50 to 70 new branches across the country - the largest expansion by a foreign bank ever.Pakistani officials said Emaar was seeking to invest mainly in high-rise apartment complexes, hotels and shopping centres in Karachi - a city less than two hours flying time from Dubai.