The UAE's Ahmed bin Khalaf Al Otaiba Group has entered a joint venture with France's Vivendi to set up a waste-water treatment and sewage facility in Khartoum. Feasibility studies have been completed, according to Dr. Abdel Halim Al Mutafi, governor of Khartoum and a former Sudan industry minister.

A memorandum of understanding was signed on Thursday by Al Mutafi and the Al Otaiba Group in Dubai. The Al Otaiba Group has other projects in Sudan, including the $40 million Khartoum Oasis project comprising four residential and commercial towers.

It also owns Trizac Sudan, which supplies oilfield and industrial products. Of Sudan's total foreign direct investment of $6 billion, Gulf investors have contributed $3 billion. Of that, the UAE accounts for about $1.3 billion in oil, agriculture and manufacturing projects.

Emirates Telecommunications Corp (Etisalat) is in advanced talks with Sudatel to raise its stake from 12 per cent, valued at Dh57 million, to over 30 per cent, Al Mutafi said. This would make Etisalat the second-largest shareholder in the telecommunications company after the Sudanese government. Its other shareholders are Saudis and Qataris.

"The higher inflow of investment comes in the wake of the discovery of oil. About 80 per cent of the revenues that Sudan generates from oil sales go towards infrastructure, power generation, agriculture and educational requirements. We are hopeful about attracting more active interest from potential UAE investors," Al Mutafi said.

A UAE-promoted project is a Dh80 million sugar processing plant, said to be the biggest in the Middle East and Africa. Trade between the two states rose 39 per cent to Dh600 million last year.

"The Arab Authority for Agriculture Investment and Development has recently focused on Sudan as a future area of investment activity. The Khartoum government has just provided 100,000 acres to the authority to set up an industrial centre for animal food processing." Sudan will host a forum on "Investment Opportunities and Development of Transport Services" on June 5 and 6.