UAE, Russia foreign trade hits $4b in 2021: Russian Minister

Abu Dhabi - The Russian capital accounts for about 14 per cent of all investment in fixed capital and about half of the foreign direct investment in the country

Total foreign trade between Russia and the UAE is set to reach around $4 billion by the end of this year, said Sergey Cherimin, Minister of the Government of Moscow, head of the Moscow Department for Foreign Economic Activity and International Relations.

In 2020, this figure stood at $3.3 billion. Cherimin said that trade turnover between the organisations registered in Moscow and their UAE's partners was 1.6-fold higher in H1 2021, compared to the same period of 2020. "As of today, several dozens of operating companies with Emirati funds in their authorised capital are registered in Moscow. In return, Russian companies have opened offices in the UAE, and today there are more than 4,000 of them," he said.

"I am sure that the signing of the Cooperation Programme between the two capitals will define a new stage in the relations between our cities, and will contribute to the existing partnership relations between our countries," he added.

Moscow is one of the largest megalopolises in the world and the centre of attraction for domestic and foreign investments thanks to its well-developed infrastructure, human capacity, high intellectual, scientific and consumer potential, which attracts not only foreign companies, but also millions of tourists.

The Russian capital accounts for about 14 per cent of all investment in fixed capital and about half of the foreign direct investment in the country. According to the Financial Times rating of the most attractive cities for foreign direct investment in Europe, Moscow ranked second in investment attractiveness among major European cities and first among the cities of Eastern Europe.

The Russian official clarified that more than two-thirds of the investments are focused on banking, consulting and insurance services, IT, as well as in mechanical engineering, electronics, communications and aircraft construction.

"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. We urge the UAE investors to actively explore the Moscow market, which currently has great opportunities for business development," Cherimin said.

The programme of cooperation between the Abu Dhabi Government and the Government of Moscow was signed within the framework of the Days of Moscow in the UAE.

According to the Russian official, in the past few years, there has been a substantial increase in contacts between Moscow and the UAE. "We have witnessed a qualitative increase in our UAE partners' interest in Moscow projects and solutions."

business@khaleejtimes.com