VZCZCXRO0569
RR RUEHDE
DE RUEHNT #0778/01 1890428
ZNR UUUUU ZZH
R 070428Z JUL 08
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 9948
INFO RUEHAD/AMEMBASSY ABU DHABI 0170
RUEHAK/AMEMBASSY ANKARA 2793
RUEHTA/AMEMBASSY ASTANA 0340
RUEHAH/AMEMBASSY ASHGABAT 4127
RUEHEK/AMEMBASSY BISHKEK 4742
RUEHLM/AMEMBASSY COLOMBO 0607
RUEHKA/AMEMBASSY DHAKA 0466
RUEHDBU/AMEMBASSY DUSHANBE 0624
RUEHIL/AMEMBASSY ISLAMABAD 4333
RUEHBUL/AMEMBASSY KABUL 2625
RUEHKT/AMEMBASSY KATHMANDU 0646
RUEHMO/AMEMBASSY MOSCOW 7486
RUEHNE/AMEMBASSY NEW DELHI 1282
RUEHDE/AMCONSUL DUBAI 0183
RHEHNSC/NSC WASHINGTON DC 0190
RUEAIIA/CIA WASHDC 0039
RHEFDIA/DIA WASHDC
RUEHVEN/USMISSION USOSCE 2594

UNCLAS SECTION 01 OF 02 TASHKENT 000778 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV ECON EINV ETRD KISL KTIA UZ
SUBJECT: UZBEKISTAN: UAE TO BUILD CULTURAL-RELIGIOUS CENTER 
IN TASHKENT, EXPAND INVESTMENT 
 
REF: TASHKENT 764 
 
¶1. (SBU) Summary: Poloff met with an Economic Specialist of 
the United Arab Emirates (UAE) Consulate General in Tashkent 
on July 2 to discuss the recent conclusion of several 
investment-related agreeements between the UAE and 
Uzbekistan. To date, the Government of Uzbekistan has 
approved 21 UAE investment projects totaling USD 3.5 billion 
under these agreements. The Economic Specialist also 
confirmed that plans exist for a UAE company, Dubai 
Properties, to construct a large "cultural-religious 
building" in downtown Tashkent on the present site of the 
Tomb of the Unknown Soldier. End summary. 
 
¶2. (SBU) On July 2, Poloff met with Nigora Asadova, a 
locally-employed Economic Specialist of the UAE Consulate 
General in Tashkent, to discuss UAE investment in and trade 
with Uzbekistan. Asadova informed Poloff that President 
Karimov has approved 21 UAE investment projects worth USD 3.5 
billion under the framework of the Uzbekistan-UAE agreement 
concluded during an October 2007 visit to Tashkent by Sheik 
Mohammad bin Rashid al-Maktoum, Vice President and Prime 
Minister of the UAE as well as Ruler of Dubai. Of that 
amount, the UAE reportedly plans to invest USD 1.4 billion in 
fuel and energy projects. Asadova noted that the countries 
also concluded a double taxation waiver agreement during the 
October 2007 visit. On March 17-18, 2008, President Karimov 
reciprocated with an official visit to the UAE, during which 
the two countries agreed to establish a Joint 
Intergovernmental Commission for Economic Cooperation. The 
goal of this body--which held its first meeting in Tashkent 
on May 28--is to expand bilateral trade, investment, and 
technical cooperation. A follow-up Uzbek-UAE Business Forum 
was held in Tashkent on May 29. 
 
¶3. (SBU) Asadova informed Poloff that 68 UAE-capitalized 
enterprises currently operate in Uzbekistan: 32 wholly 
UAE-owned enterprises and 36 joint ventures. These 
enterprises are concentrated in the construction materials, 
electrical products, transport, trade, and food industry 
sectors. Asadova reported that Uzbekistan-UAE bilateral trade 
totaled USD 93.1 million in 2007, down from USD 112.4 million 
in 2006 and USD 116.7 million in 2005. She noted that the 
decrease was due to normal fluctuations in trade rather than 
any particular economic or political developments in 
Uzbekistan. According to Asadova, Uzbekistan enjoyed a trade 
surplus of USD 48.4 million with the UAE in 2007. Uzbek 
cotton exports reportedly accounted for much of that surplus, 
which she said comprised 73 percent of the Uzbek exports to 
the UAE that year. Uzbekistan also provides air 
transportation to the UAE and exports silk and non-ferrous 
metals. In return, Uzbekistan imports electrical appliances, 
rubber products, building materials, and foodstuffs from the 
UAE. 
 
¶4. (SBU) Asadova also confirmed reports that Uzbekistan plans 
to build a large "cultural-religious building" on the site of 
the current Tomb of the Unknown Soldier in downtown Tashkent 
honoring Uzbek soldiers who died in World War II. (Note: 
Recent rumors suggested that the new building would be a very 
large mosque. Asadova, however, indicated that the building 
would be "more cultural than religious." End note.) She said 
that the UAE company Dubai Properties Group would construct 
the new cultural-religious building, but she was unable to 
provide further details on the project. According to a paper 
Asadova provided to Poloff, the Institute of Oriental Studies 
of Uzbekistan and the Juma Al Majid Heritage and Culture 
Center of the UAE signed a cultural cooperation agreement 
during President Karimov's March 2008 visit to the UAE. It is 
unclear whether this agreement is related to the Dubai 
Properties construction plans. Asadova noted that Dubai 
Properties also plans to construct a new USD 500 million 
 
TASHKENT 00000778  002 OF 002 
 
 
business center in Tashkent. (Note: We have heard separately 
that a Dubai-based shipping company may invest in 
infrastructure upgrades to the strategically-located but 
decrepit river port at Termez on Uzbekistan's border with 
Afghanistan. See reftel. End note.) 
 
¶5. (SBU) Comment: Economic cooperation between Uzbekistan and 
the UAE appears to be deepening, with investment-related 
agreements concluded between the two states in October 2007 
and March 2008. However, close to 50 other countries have 
signed similar framework agreements on the encouragement and 
protection of investments in Uzbekistan with only limited 
implementation, and particulars and timeframes for the 
announced UAE investment in Uzbekistan remain unclear. In any 
case, Dubai Properties' plan to construct a large 
cultural-religious building at such a prominent Tashkent 
location in an ostensibly secular state warrants further 
monitoring. In general, the UAE appears to share Uzbekistan's 
desire to promote a more liberal brand of Islam and counter 
extremist religious ideologies. While the planned 
cultural-religious center may signal an effort by President 
Karimov to highlight Uzbekistan's bonds to the broader 
Islamic world, it is unlikely to represent an official effort 
to increase significantly the role of Islam in Uzbek society 
and politics. End comment. 
NORLAND