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UAE set to run Kabul airport in deal with IEA: sources

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The Islamic Emirate of Afghanistan (IEA), and the United Arab Emirates are poised to strike a deal for the Gulf nation to run Kabul airport and several others in Afghanistan that could be announced within weeks, according to sources familiar with the negotiations, Reuters reported.

According to the report the IEA, whose government remains an international pariah without formal recognition, have courted regional powers, including Qatar and Turkey, to operate Kabul airport, landlocked Afghanistan’s main air link with the world, and others.

But after months of back-and-forth talks, and at one point raising the possibility of a joint UAE-Turkey-Qatar deal, the IEA is set to hand the operations in their entirety to the UAE, who had previously run Afghan airports, the sources said.

An agreement would help the IEA ease their isolation from the outside world as they govern an impoverished country beset by drought, widespread hunger and economic crisis. It would also hand Abu Dhabi a win in its diplomatic tussle with Qatar for influence, Reuter’s story read.

Under the deal with the UAE, Afghans will be employed at the airports, including in security roles, crucial for the IEA who want toshow they can create jobs but also because they staunchly oppose the presence of foreign forces, sources said.

According to Reuters an Emirati state-linked contractor had been contracted to provide security services, which should be announced soon, while negotiations over airspace management are ongoing, they said.

The IEA in May awarded the ground services contract to UAE state-linked GAAC, which was involved in running security and ground handling services at Afghan airports before the IEA takeover, shortly after IEA officials had visited Abu Dhabi.

Meanwhile, Qatar and Turkey’s joint negotiations with the IEA broke down around the same time, sources said.

Emirati officials had no immediate comment when contacted by Reuters. GAAC did not respond to a request for comment.

An IEA transport ministry spokesman confirmed an aviation security contract had already been signed with the UAE but said the air traffic contract was not finalised or confirmed yet, Reuters reported.

There is little direct commercial benefit in the airport operations, but Kabul airport would provide a key source of intelligence on movements in and out of the country, Western officials say.

The sources said UAE airlines, which have not flown to Afghanistan since the IEA takeover last year, were expected to resume flights to Kabul and possibly other Afghan airports after the deal was finalized, read the report.

Other airlines, who too have stayed away, could also again operate flights if the UAE deal can address substantial security concerns, including the threat posed by the Afghan branch of the Islamic State whose targets have included the IEA.

In the months leading up to the ground services being awarded to the UAE, the IEA repeatedly made unexplained changes to its team negotiating with Qatar and Turkey, the sources said.

Then the IEA sought to alter agreed terms by upping airport fees and taxes and weaken Qatar and Turkey’s control over revenue collection, they added.

A Qatari official had no immediate comment when contacted by Reuters. A Turkish official, speaking on condition of anonymity, confirmed talks with the IEA had stopped “some time ago”.

The UAE’S efforts are part of a quiet but assertive push by Abu Dhabi to expand longstanding ties with the IEA that have included government aid and diplomatic efforts in the months since the IEA took power in August.

Western officials say Abu Dhabi sees Afghanistan, which shares a large land border with UAE’s Gulf neighbour Iran, as part of its wider backyard and so believes it has legitimate interests in the country’s political and economic stability, Reuters reported.

But those officials also say the UAE is keen to counter the influence in Afghanistan of Qatar, a Gulf state lauded by Western nations for serving as gateway to the IEA but a rival of Abu Dhabi’s in a contest for regional influence.

Western officials worry that rivalry is now playing out in Afghanistan. The UAE, along with Saudi Arabia, Egypt and Bahrain, cut ties with Qatar from 2017 until 2021 as part of a long-running, bitter dispute between the two rich Gulf states that was largely resolved last year.

Qatar has hosted the IEA’s political office in Doha, long one of few places to meet the IEA and where the United States negotiated with the IEA to withdraw from Afghanistan.

Qatar also helped run Kabul’s Hamid Karzai International Airport after the collapse of the Western-backed government last year. Its state-owned Qatar Airways operated charter flights and Qatari special forces provided security on the ground.

But Qatar’s relationship with the IEA now appears strained, according to Western officials who say the IEA have become wary of being too dependent on any one nation.

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$30 million pharmaceutical investment launched in Herat as new production line opens

Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.

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The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.

The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.

Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.

The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.

The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.

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Afghanistan approves new foreign investment policy in bid to attract international investors

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.

The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.

According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.

The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.

During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.

Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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Afghanistan and Iran discuss boosting trade and investment ties

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

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Afghanistan and Iran have held talks on expanding bilateral trade, improving cross-border commerce and creating new investment opportunities for businesses in both countries.

The discussions took place during a meeting between a trade delegation from Afghanistan’s Kandahar province and representatives of the Iran-Afghanistan Joint Chamber of Commerce.

The Afghan delegation was led by Kamaluddin Tawhid, Chairman of the Afghanistan-Iran Joint Chamber of Commerce, who met with his Iranian counterpart, Mahmoud Seyadat, along with members of the chamber’s board of directors. Afghanistan’s Consul General in Mashhad, Noor Mohammad Mutawakkil, also attended.

The talks focused on strengthening economic cooperation, streamlining trade procedures at ports and border crossings, and encouraging joint investment by Afghan and Iranian companies.

Participants also raised several practical obstacles affecting commercial activities, including foreign exchange obligations, visa arrangements for Afghan truck drivers and the movement of Afghan freight vehicles through Iranian territory.

Tawhid highlighted Kandahar’s economic potential and investment opportunities across Afghanistan, urging Iranian businesses to play a greater role in the country’s economy.

He also pointed to investment opportunities identified by Afghanistan’s Ministry of Industry and Commerce, stressing the need for improved facilities for private-sector businesses and closer cooperation between the two countries’ commercial communities.

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

The meeting concluded with a commitment to strengthen commercial exchanges and expand trade and investment relations between Afghanistan and Iran.

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