Etisalat, the telecom giant of the United Arab Emirates (UAE), will enter a strategic partnership with a UAE investment company to provide telecom services in Nigeria, local newspaper Gulf News reported on Sunday.

Mubadala Development Company, a strategic investment and development vehicle established and wholly-owned by Abu Dhabi government, obtained in March a 15-year renewable telecom license in the western African country.

Mubadala has been allowed to offer mobile, fixed-line, voice, data services and to establish an international gateway in Nigeria.

"Based on our understanding of the market, we believe Etisalat is in the strongest position to bring maximum value to the operations leveraging their international footprint and operating experience in Africa," Mubadala's chief operating officer Waleed Al Mokarrab Al Muhairi said.

Etisalat will hold 40 percent of shares in the telecom company to be established by Mubadala to operate its telecom business in Nigeria. Mubadala will hold 30 percent of shares in the company while the remaining shares will be held by Nigerian investors.

The commercial launch of the joint venture in Nigeria is scheduled for March 2008.

The transaction will add a population of some 135 million to Etisalat's addressable market, which will grow by 30 percent to 600 million potential customers.

As the third largest Arab telecom provider by market value, Etisalat currently manages 14 service providers in the Middle East, Asia and Africa.