UAE and Russia trade set to rise 21% to hit $4bn in 2021

UAE companies are keen to invest in transport infrastructure, property development and hospitality sectors in Moscow, according to a top Russian official

Visitors walk in front of Russia's pavilion at the Expo 2020. UAE companies are showing an interest to invest in Russia and particularly in Moscow, according to a senior official. AFP

The total trade between Russia and the UAE is set to jump 21 per cent 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 authorised 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 favourable 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 per cent 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 per cent stake in Moscow-listed aluminium 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 north-west Russia, Mubadala said in 2019.

"Foreign investors are attracted by the reduced cost of doing business, favourable 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.

Updated: December 12, 2021, 3:42 PM