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UAE Bangladesh Investment Company Limited a private limited company incorporated in Bangladesh under the
Companies Act 1913 on 11 June 1987 with a desire to consolidate the joint efforts of the government of Bangladesh and United Arab Emirates to promote economic co-operation between them. To this effect, a contract was signed on 8 November 1986 between the governments of Bangladesh and Abu Dhabi Fund for (Economic) Development. The company started business in June 1989 with an authorised capital of Tk 500 million. Of its total share capital, 60% was paid by the Abu Dhabi Fund for Development and the remaining 40% by the government of Bangladesh. On 31 December 2000, the paid up capital of the company was Tk 158 million and the total reserve funds Tk 162.75 million. The company makes investment in Bangladesh in financially viable projects in all sectors of the economy. It provides support to potential entrepreneurs in undertaking projects, financing them through participation in equity or purchasing debentures, and providing assistance in management. It also provides working capital finance and other credit to industrial units. The company has a plan to engage in the buying and selling of shares, stocks and debentures of financially sound and successful companies or projects directly or jointly with other financial institutions of the country. Trends in expansion of the volume of business of the company do not match the projections made at the time of its establishment. Up to 31 December 2000, the company's total investment amounted to Tk 42.21
million. It provided loans of Tk 17.92 million to only one project (Harvest Rich Limited) as a co-financier with IPDC, Eastern Bank and other financial institutions. It invested an additional Tk 23.5 million in the same company by acquiring its shares. Total net assets of the company were valued at Tk 419.93 million on 31 December 2000. The liabilities of the company comprised share capital Tk 158 million and reserves and surpluses Tk 262.12 million. In 2000, it earned a net profit of Tk 49.79 million, which was appropriated as general reserves Tk 12.45 million and retained profit Tk 37.34 million. Operating profits of the company showed an increasing trend in 2000 and stood at Tk 49.79 million as compared to Tk 6 million in 1996.
The company is managed by a 5-member board of directors.
Three of them, including the president are nominated by the Abu Dhabi
Fund and two others by the government of Bangladesh. [S M Mahfuzur Rahman] |
