The total trade between Russia and the UAE is set to jump 21 percent to reach $4 billion in 2021 as economic ties between the two countries strengthen, according to a top official.
“As of today, several dozens of operating companies with Emirati funds in their authorized capital are registered in Moscow,” Sergey Cherimin, minister of the government of Moscow and head of the Moscow department for foreign economic activity and international relations told state news agency Wam.
“In return, Russian companies have opened offices in the UAE, and today there are more than 4,000 of them.”
The comments come as investment and trade ties between the two countries deepen.
Last month, the UAE and Russia signed a declaration of intent to form a joint task force aimed at strengthening co-operation in the energy sector, particularly in clean energy.
The UAE’s Ministry of Industry and Advanced Technology is also collaborating with Russia’s Ministry of Industry and Trade in developing hydrogen fuel technology to achieve a carbon-neutral industrial sector.
UAE companies are showing an interest to invest in Moscow, especially in projects related to transport infrastructure, property development and hospitality sectors, Mr Cherimin said.
“Moscow, like the UAE, is following the path of sustainable and environmentally friendly development. Over the years of bilateral co-operation, we have done a lot to create favorable conditions for Moscow companies to enter the UAE market and for UAE companies to enter the Moscow market.”
Abu Dhabi’s Mubadala Investment Company has invested in Russia in sectors including infrastructure and property to commodities, banking, logistics and technology, resulting in strong financial returns.
Last week the company said it acquired 1.9 percent stake in petrochemicals company Sibur for an undisclosed amount, marking the fund’s largest investment in Russia.
Mubadala’s other investments include a 2.6 percent stake in Moscow-listed aluminum company En+, among others.
It is also exploring options for a potential joint investment with state-owned Russian Direct Investment Fund to build a new $2.8bn pulp mill plant in northwest Russia, Mubadala said in 2019.
“Foreign investors are attracted by the reduced cost of doing business, favorable legislation, and the measures taken by the Moscow City Government to improve the investment climate, including support for the real sector, especially during the pandemic,” Mr. Cherimin said.
(Except for the headline, this story has not been edited by The Technology Express staff and is published from a syndicated feed)
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