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Expanding Russian business in the UAE

Dubai, January 23 (Gulf News, By Charles Stratford, Staff Reporter) Russia is one of four emerging markets along with India, China and Brazil with the potential to become a global economic superpower, according to business analysts. And nowhere is that more evident than in its ever-growing business ties with the UAE.

Trade and economic ties is growing and diversifying steadily between the two countries, said Alexander Bratiakov, Commercial Consul at the Russian Embassy in Abu Dhabi.

Steadily is an understatement as growth rates are astounding. According to Bratiakov, trade turn over between Russia and the Emirates is expected to reach $700 million (Dh2.5 billion) in 2005. That?s up from $490 million (nearly Dh1.8 billion) in 2004 and $275 million (just over Dh1 billion) in 2003.

Along with a burgeoning presence in the construction industry, Russian exports to the UAE include, high-tech geophysics equipment, industrial chemicals and synthetic rubber.

Dubai's location in the Arabian Gulf and its highly developed free trade zones has put the Emirate at the forefront of helping Russian business integrate internationally, says Dr Yuri Tarilov, vice-president of the Russian Investment Fund.

He is confident that growth in business relations is set to continue especially following Russian President Vladamir Putin's recent decision to build at least ten free zones around Russia which will be seen as vital commercial centres with Dubai.

Tarilov says the Russian business community is attracted to the Emirates because of the concentrated presence of international business here, especially from the UK, US and Japan. He says the international standards practised here help Russia prove its business credentials on a world stage.

International standards of business in the UAE helps Russia as it faces WTO membership which is expected in 2006. Russian business gains status, experience and exposure here on an international stage, he says.

Commenting on Russia's evolving business environment Sergay Skutin, deputy executive chairman of development at Automobile and Motors of the Urals (AMYP), says that growing oil revenues and the countries political stability are the main fuellers of growth. Its growing business relationship with the UAE is helping generate interest with other foreign companies in the Emirates.

Skutin is dismissive of the idea that Russian investment in the UAE is a panic reaction to invest as quickly as possible outside Russia while political stability lasts in their homeland.

No I don't see this reaction. There is growing capital return from outside back to Russia. Russian business on this scale is new in the UAE because Russia is a new country itself. There is growing competition here and internationally and as a new player on the international capitalist markets we have to work that bit harder, he said.

Tarilov says that the success of Russian business in the UAE means that Russian businessmen should be ambassadors helping to educate the commercial and non-commercial world about Russian business and culture.

We are not only businessmen, we are responsible for changing our reputation and educating the world about our culture and country by working in the UAE's international business environment, he said.