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Abu Dhabi Group, an umbrella of a series of Iraqi
businesses, is keen to enter the Ethiopian market,
investing in the real estate and hotel sectors that
experts estimate would cost billions of Birr.
Although very interested to invest in telecom and
the finance sector, an exclusive state domain and
reserved for nationals, respectively, the Group has
agreed to take a 2,000hct plot on the outskirts of
Addis in order to develop housing projects.
Groomed and invited by the Directorate for Economic
Cooperation and Business Affairs under the Ministry
of Foreign Affairs (MoFA), the Group’s Chairman,
Sheik Nahyan Bin Mubarak Al Nahyan, met senior
federal and regional authorities last week,
including Prime Minister Meles Zenawi, Trade and
Industry Minister Girma Birru, and Oromia Regional
State President, Abadulla Gemeda. His visit was a
follow-up to a previous visit in November 2007
conducted by Bashir Ahmad Tahir, chief executive
office (CEO) of the Group.
Abadulla has entered
into a memorandum of understanding (MoU) on January
8, 2008, with the Group’s Chairman, committing his
administration to avail the 2,000hct plot within a
35Km radius of Addis Abeba, ideally in Erer,
northeast of the capital, or Legetafo, to the south,
Alemu Sime, Investment Commissioner of the Oromia
Regional State, told Fortune.
“The Group can choose whichever area they like,”
said Alemu.
The houses to be developed in the chosen area,
incorporating schools and hospitals, will be
available for sale and rent both for foreign
nationals and Ethiopians, a senior official from the
Directorate told Fortune.
“This kind of business is new to Ethiopia,” a city
planning expert told Fortune. “It is a
multibillion Birr investment that will have
tremendous benefits for the country.”
Authorities here are expecting the Group to send a
team of experts in the coming two weeks to develop
feasibility studies for its investment in real
estate development; constructing a five-star hotel
in Addis Abeba is also part of the Group’s desire,
thus its managers have agreed to submit their
request to the city administration within the same
period, a senior minister told Fortune.
Following a request from the Prime Minister’s
Office, the Caretaker Administration of Addis Abeba
has prepared 50 plots for hotel construction and
floated a public tender to lease them for private
developers. There were not enough bidders when the
tender was opened in December 2007.
Abu Dhabi Group was established in 1993 by Sheikh
Nahyan Bin Mubarak Al Nahyan, Sheikh Suroor Bin
Mohammed Al Nahyan, Sheikh Hamdan Bin Zayeed Al
Nahyan and Sheikh Mohammed Bin Butti Hamed Al Hamed.
The Group, employing 10,000 people, is very active
in the Middle East, particularly in Iraq and United
Arab Emirates (UAE), in banking, telecommunications,
manufacturing, pharmaceuticals and the hospitality
industry. It has a strong presence in Africa
operating in Uganda and Botswana.
“The Ethiopian government is aware of the potential
of the Group and committed to encourage it invest in
Ethiopia,” Minister Girma told Fortune.
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