UAE-Russia trade to double by 2030 in 'next phase' of economic co-operation

Trade between the UAE and Russia could double in the next five years as the two countries identify sectors for further economic co-operation from space exploration to food processing.

UAE-Russia trade is expected to hit more than $10 billion this year and could double by 2030 as a “relatively conservative” target, Alexander Vinokurov, chairman of the Russia-UAE Business Council said on Wednesday at the first UAE-Russia Business Forum in Dubai.

“With all the great energy we had today from both sides, on both the corporate and regulators' side, we hope it will happen faster,” Mr Vinokurov told reporters on the sidelines of the event.

“Then of course we will look to double it again.”

While the imposition of western sanctions on Russia may slow down the potential growth in trade and investment, the country will seek to achieve its targets within the framework of UAE regulations, he told The National.

“Russian companies and regulators have learnt to work around it [sanctions]. In many ways it made the Russian economy and Russian sanctions stronger.

“Now we have complete understanding and respect of the framework within which UAE companies and banks operate, so we will work to realise our potential within this framework.

“Perhaps it could happen faster if those limitations were not around, but it is what it is. We believe we can still achieve great success regardless.”

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Next phase of co-operation

More than 13,500 Russian companies are currently registered in the UAE, with about 2,000 new licenses issued this year alone, UAE Economy Minister Abdulla bin Touq said in a speech at the forum. These companies operate in logistics, tech, hospitality, retail, manufacturing and services.

UAE companies are also investing in critical sectors in Russia mainly transport, energy, real estate and food processing, bolstered by strong air connectivity of more than 200 weekly flights linking UAE cities with destinations across Russia, he said.

“This connectivity will remain a strong foundation for the next phase of co-operation. There is significant room to build on this foundation,” Mr Bin Touq added.

Russia is a major industrial economy with “competitive strengths” in mineralogy, chemicals, agri-food processing, engineering and cyber security, which align closely with the UAE's industrial agenda to expand industrial manufacturing and develop high-value supply chains.

“Russia's industrial capacity, scientific expertise and large market can complement the UAE's position as a global hub for capital, logistics and entrepreneurship,” he said. The UAE offers “clear advantages” for Russian companies seeking to expand in the Middle East, Africa and Asia.

The minister identified five key sectors with “great potential” for co-operation between the two countries. These include food and food processing, tourism, financial services and FinTech, data and data analysis and space exploration.

Following meetings in the past two days, the UAE sees potential for co-operation beyond these sectors in the next couple of years.

“As both our countries navigate a complex global landscape, there is a clear opportunity to strengthen our co-operation,” Mr Bin Touq said. “We remain committed to supporting deeper ties between out between our private sectors.”

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