Impressive 131% growth rate in Dubai-Russia non-oil trade during 2010-2014
DP World and the Russian Direct Investment Fund (RDIF) announced the launch of a new joint venture company targeting ports, transportation and logistics infrastructure in Russia. The announcement followed a series of meetings and discussions between DP World Chairman and top Russian officials. His Excellency Sultan Ahmed bin Sulayem, Chairman of DP World and Chairman of Ports, Customs and Free Zone Corporation, revealed that the deal had come about after a meeting with Vladimir Putin, the Russian President, during a visit to the eastern port of Vladivostok last September.
On the sidelines of the World Economic Forum in Davos, H.E. Sultan Ahmed Bin Sulayem and Kirill Dmitriev, Russian Direct Investment Fund CEO, signed a document determining the key terms and principles of the joint venture in which DP World will own an 80% shareholding with the remaining 20% held by RDIF.
Under the name ‘DP World Russia’, the company will target marine, dry ports and logistics infrastructure in different parts of Russia.
‘DP World Russia’ is expected to potentially invest over time a total of US $2 billion in upgrading Russian port facilities, while introducing international best practices in operations to improve trade connectivity for the benefit of Russian businesses, consumers and community.
Russia is a key economic partner for the UAE, with bilateral trade amounting to AED 10 billion in 2014 and total United Arab Emirates investment in Russia standing at about $18 billion (AED 66 billion). Moreover, there are about 3,000 Russian companies based in the UAE.
H.E. Sultan Ahmed Bin Sulayem, DP World Chairman, said: “Russia has always been an attractive origin and destination market for us with huge long term growth prospects. This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years. Ports and logistics infrastructure are long-term investments and this is why, when we invest, we prefer an approach that recognizes the benefits of sharing resources for a common purpose.
RDIF has a proven track record of investing with other global companies and we are pleased to partner with them. This JV will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries.”
Dubai strives to boost trade prospects with Russia, as non-oil two-way trade between Dubai and Russia experienced an impressive 131% growth rate between 2010 to 2014, he added. “In 2014, AED 9.62 billion worth of goods were traded bilaterally, against as much as AED 4.16 billion in 2010. Dubai-Russia trade scored AED 5.23 billion in the first nine months of 2015.”
Following Bin Sulayem’s meeting with the Russian President last September, Putin mandated Yuri Trutnev, Deputy Prime Minister of Russia and Presidential Envoy to the Far Eastern Federal District, and Maxim Sokolov, Minister of Transport of the Russian Federation, to provide DP World with investment facilities and remove any hurdles to its potential business operations in the Far East.
We began life as a local port operator with our first project, the development of Dubai’s Port Rashid, in 1972. Seven years later we opened Jebel Ali Port, the busiest port outside of Asia and a facility that has propelled us on our journey to becoming a leading enabler of global trade.