Abu Dhabi''s Emirates Telecommunications Corp.,or  Etisalat, has signed a memorandum of understanding with the Export-Import Bank of China and Huawei International.

"The MoU aims to enhance the strategic cooperation amongst the three parties in the telecom sector," Etisalat said in a statement posted on the Abu Dhabi bourse website Thursday..

Under the terms of the latest agreement, Huawei and Etisalat will continue to work together to provide innovative new technologies and services across Middle East, Etisalat said.

"Etisalat has some major network upgrade and roll-out programs in the UAE, including a plan to expand fiber-to-the home nationwide. Huawei is one of Etisalat's major vendor partners. I expect this agreement is a vendor financing agreement related to Etisalat's roll-out plan," said Matthew Reed, a senior analyst at Informa Telecoms and Media in Dubai

Etisalat shares last traded Thursday 0.9% higher at AED11 in a slightly positive overall market.