Arab companies to invest $800m in Russia

New foreign policy calls for local companies to expand cooperation with Arab world.
Arab companies to invest $800m in Russia
RUSSIAN INVESTMENT: Russian Technologies Corp, a state holding, said that UAE investors had agreed to spend $800m on new projects. (Getty Images)
By Bloomberg
Fri 17 Sep 2010 02:28 PM

UAE investors agreed to spend $800 million on new projects in Russia amid a Russian drive to boost commercial ties with Arab countries.

Gulftainer Company, a port operator in Sharjah, and Dubai based Damac Properties today signed investment accords with the financial arm of Russian Technologies Corp, a state holding of more than 500 companies.

The deals were sealed today at Prime Minister Vladimir Putin’s investment forum in Sochi.

Gulftainer will invest $500 million in infrastructure, including ports and logistics centers, and Damac will invest $300 million in real estate projects, including facilities in Sochi for the 2014 Winter Olympics, said Valery Kartavtsev, a Russian Technologies spokesman.

In an emailed statement sent today, Hussain Sajwani, chairman, Damac Properties, said: “We have always been interested in investing in the CIS countries and this joint venture presented us an opportunity to enter into a market with great potential."

The Commonwealth of Independent States is a grouping of 11 former Soviet nations.

Russia’s new foreign policy doctrine, leaked to Russian Newsweek in May, calls for domestic companies to expand cooperation with the Arab world to foster pragmatic, business oriented relations to lure investment and expertise that can help modernize the economy.

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