12:04 GMT +3 hours29 June 2016
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Getting Arab Money: Gulf Investments Pour Into Russia Amid Sanctions

© Sputnik/ Artem Zhitenev
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Wealthy Gulf states have increased their investments into Russia as traditional investments such as Europe become less profitable.

Although Russia's Direct Investment Fund (RDIF) has been hit with US sanctions, it has been no barrier for wealthy Arab nations in the Persian Gulf interested in investment, the Arabian Business Weekly reported.

Over 90 percent of the RDIF's investors have come from the Middle East and Asia, particularly from large sovereign wealth funds. The RDIF is a fund which helps foreigners unfamiliar with Russia's economy invest in high-growth sectors with the help of investment professionals.

"The Gulf is becoming more familiar with the Russian market. In the past the country was perceived as a difficult market for investors — it has gone through an important transition from being a socialist economy only 25 years ago and a lot of institutions needed reforming," RDIF CEO Kirill Dmitriev told Arabian Business.

Other drivers spurring investment in Russia for Gulf countries have been a weaker ruble and increased privatization of state enterprises.

One of the biggest recent investments has been Dubai port company DP World's $2 billion investment into Russian ports despite pulling out of the market in 2012,

"Russia has always been an attractive origin and destination market for us with huge long-term growth prospects," DP World CEO Sultan Ahmed Bin Sulayem said at the time.

In addition to the Russian economy's blue chips, Russia and the United Arab Emirates have begun looking at investments that would boost trade and cooperation, such as food exports, finance, Islamic banking and efficient oil exploration.

Related:
Russian-Japanese Ties Develop Despite Sanctions - Russian Trade Minister
EEU-Vietnam Free Trade Deal to Boost Investments – Russian Prime Minister
Russia-EU Trade to Return to Growth in 2016 - Minister
Tags:
investment, trade, DP World, Russian Direct Investment Fund (RDIF), Russia, Dubai, United Arab Emirates
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  • enrique_costas
    The tallest skycrapers in Europe...but almost all of them in Moscow even if the tallest which is being built, the Lakhta Center is in St. Petersburg.

    What doesn´t make sense is that in an strategycal port city like Vladivostok there are not tall skycrapers as in other countries in the Pacific.

    Vladivostok is the New Dubai of the North Far East (in the South Far East there are already Hong Kong and Singapore), next to 400 million consumers and huge natural resources.
  • Mitach2002
    I think the terrorist American governments sanctions may end up being a huge benefit to Russia.
  • Ann
    Who's being "isolated" again?
  • Ann in reply toenrique_costas(Show commentHide comment)
    enrique_costas, and western globalists can't get their grubby fingers on any of it...LOL
  • enrique_costas
    As there are more comments "via sputnik" than "via facebook", it would be more logical if they come first, and not second. When we open the webpage, first we can read "Comment via facebook", but it should be "Comment via Sputnik"..
  • michaelin reply toenrique_costas(Show commentHide comment)
    enrique, agree with your comment, but I wonder, how many would continue to read fb comments after they have read the Sputnik ones. I for one, scan the first few and then move to here primarily because the (majority of) comments are more constructive and well informed. There does also seem to be a developing community here as well with the regular contributors. :)
  • vendorin reply toMitach2002(Show commentHide comment)
    Mitach2002, I think so.
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