Russia will supply Su-30 Flanker fighters and Yak-130 Mitten trainer/light attack jets to Algeria in 2011, the deputy head of the Russian Federal Service for Military Technical Cooperation, Vyacheslav Dzirkalin, said.

"The delivery of Su-30s and Yak-130s [to Algeria] is due to begin next year, this is no military secret," Dzirkalin said.

Earlier in April, the head of Russian Technologies state Corporation, Sergei Chemezov, in an interview with the Novaya Gazeta weekly said Russia would ship to Algeria "a party of modern Russian fighters" at a price of about $1 billion.

Dzirkalin did not specify the number of aircraft to be delivered to Algeria.

Speaking about Russian-Algerian Navy partnership, Dzirkalin said that "636 series diesel submarines are being repaired and modernized, but the Algerian side has not stated anything on the purchase of the new subs."

The 636 Kilo diesel-electric submarine is a more advanced version of a 877 Paltus sub. The Chinese Navy has two Russian Kilo submarines built at one of the leading submarine shipbuilding companies, Admiralty Shipyards in St.Petersburg.

Emirates Telecommunications Corp (Etisalat) would enter the Algerian market if the right opportunity came up, its chairman said.

"We are interested in the Algerian market when we see the right opportunity. No doubt that choosing a telecom partner is an Algerian government decision," Mohammad Omran said in remarks emailed to Reuters.

Omran was quoted by United Arab Emirates (UAE) daily The National on Thursday as saying the firm was interested in buying Djezzy, the Algerian unit of Egypt's Orascom Telecom.

The Algerian government wants Orascom to relinquish ownership of Algeria's No.1 mobile phone operator, government and finance industry sources told Reuters this week.

Omran said relations between the UAE and Algeria were "very distinguished" and the North African country had "opened many doors to many investment opportunities" in various sectors.

Orascom is currently appealing a $597 million tax bill Algeria says Djezzy owes. It is also in the process of raising $800 million via a rights issue to cover any potential cash shortfall.

Orascom Telecom could secure $6 billion to 7 billion if it chooses to sell Djezzy, but might have to accept far less if forced out by the government, analysts told Reuters on Wednesday.

Etisalat, the Gulf region's second-largest telecommunications firm by market value, has been aggressively expanding outside the UAE since its monopoly there was broken by Dubai-based du in 2007.

The company said earlier that there were six markets in the Middle East and North Africa that it was investigating for both acquisitions or new licences within markets that are underserved by phone services.

"Etisalat is in an excellent position - financially and operationally to capitalise on these opportunities," Omran said in the statement, without giving further details.

Etisalat, which this week said it had crossed the 100 million subscriber mark, operates in 18 countries, stretching from Tanzania to Indonesia and including Egypt and Saudi Arabia.

The firm submitted a bid in July for a licence in Libya and has previously indicated its interest in acquiring a company in Iraq and bidding for licences in Lebanon and Syria. It failed last year in a bid to take a stake in Meditel, Morocco's second-largest telecommunications' firm and had its licence withdrawn in Iran.

Abu Dhabi's Aabar Investments on Wednesday decided to take a minority interest in an auto assembling plant in Algeria.

The investment company will also own a majority 51 per cent in joint venture tunnel-boring equipment manufacturing company with Herrenknecht, a leading German firm that has large stakes in tunnel-boring equipment manufacturing.

The directors of the Abu Dhabi Securities Exchange-listed investment company have approved a 24.5 per cent stake in a joint venture with the government of Algeria and Ferrostaal, to build the first of three factories in Algeria, the firm said in a regulatory filing on Wednesday.

This is the first stage in executing the memorandum of understanding signed by the Abu Dhabi firm last year with the government of Algeria, and Germany's auto giants Ferrostaal, Rheinmetall, Daimler, Deutz, and MTU.

Up to 10,000 cars and trucks will be assembled each year at the plant as the North African country looks to establish an industrial base. Assembly is expected to start in 2010 following the modernisation or development of plants in Tiaret, Ain Smara and Oued Hamimine. The project will be led by the German truck manufacturer MAN Ferrostaal.

Daimler, Deutz, MTU and Rheinmetall will participate as technology partners providing licences and intellectual property. The investment in the auto manufacturing unit is the third major investment by the ADX-listed company 
this year.
It shook the stock markets last month by acquiring 70 per cent ownership of Arabtec Holdings PJSC investing Dh6.4 billion, at a share price of Dh2.3.

Aabar share price climbed as much as 1.32 per cent to close at Dh2.33 on Wednesday at Abu Dhabi Securities 
Exchange.

Aabar last week agreed to invest US$20 million for stakes in US aviation company XOJET Inc.