Advantages and features of creating high-tech production facilities in the UAE and KSA markets (Business Russia)

Advantages and features of creating high-tech production facilities in the UAE and KSA markets (Business Russia)

Time and date: 1:00 p.m.-2:30 p.m., May 16

Organizer: Business Russia All-Russia Public Organization.

Moderator: Dmitry Antonov, a member of the General Council of Business Russia, Business Ambassador of Business Russia in Iran, Senior Vice-President, Director of External Relations and GR of the Resurs Group of Agricultural Enterprises.

Invited speakers:

Jamila Ahli, director of commerce and business development (KEZAD);

Mikhail Aleksandrovich Labudin, Director of the Association of Clusters, Technoparks and Special Economic Zones of Russia;

Jabbori Gafforzoda, Head of the International Project Development Department of the Russian Export Center in the UAE;

Alexander Makarov, Executive Director of Chromos Engineering;

Igor Povarazdnyuk, General Director of Kama JSC;

Anna Lavrentyeva, Senior Vice-President of JSC JSCB NOVIKOMBANK;

Konstantin Ivanov, board member at Uralchem Innovation

Khabib Abdullayev, director of the Navoi free economic zone.

During the session, participants discussed how economic cooperation between Russia and the OIC countries has been strengthened, as they identified new opportunities for economic growth that may arise after localizing Russian, including high-tech, production based on the existing special economic zones.

Currently, the development of Russian business with partners from friendly Muslim countries has progressed to a completely new level. “We are jointly looking for new logistics for products, and ways to conduct financial transactions, as we implement joint projects both in Russia and in the countries of the Organization of Islamic Cooperation. Our governments have been actively developing new ways and tools to attract domestic and foreign investment as they understand the importance of supporting and developing business," moderator Dmitry Antonov said as he opened the session.

Jamila Ahli, director of commerce and business development (KEZAD), said: “In our economic zone in the UAE, there are several basic elements in terms of attracting foreign companies and their presence. Among them is the strategic location of the country. Not only can they operate in the region, but they also have access to the rest of the world using our multimodality. We apply zero taxation on income. Accordingly, there is the possibility for sole ownership. In terms of strategy, as well as the ecosystem, we contribute to promoting smart manufacturing.” The speaker noted that the Industry 4.0 economy is now actively developing.

Konstantin Ivanov, board member at Uralchem Innovation, told the audience about his company that is present in almost 100 countries, as everyone needs fertilizers. “Today one of our trading centers is located in the UAE. Currently, a whole revolution is taking place in the agricultural and food sector. Working with innovations around the world, we still focus on supporting Russian startups as we try to help improve technologies in the fields of crop production and food industry. The moment is ripe now, mostly for Russian technology companies, to enter, first of all, the OIC markets. In many ways, Russian startups have been given a boost in their development over the past two years. It is important to start perceiving Russia not only as a supplier of products and raw materials, but also as a supplier of technologies,” Konstantin Ivanov told participants in the session. 

Igor Povarazdnyuk, General Director of Kama JSC, shared his experience in implementing the Atom project, all the way up from a 10-page presentation to launching serial production. “We have designed an electric vehicle, Russia’s first EV platform developed by engineers and, which is important, IT designers. Luckily, we have accumulated quite a large amount of such competencies in Russia. <…> And the most sophisticated gadget is a car with enormous requirements for functional safety and cybersecurity. More than a thousand parts must work in unison, and tens of thousands of lines of code, stitched together at the level of electronic architecture, must function,” the speaker explained.

Given the changing geopolitical situation and economic guidelines, there is growing mutual interest in developing business both in Russia and in the OIC countries. The process of localizing Russian manufacturers in friendly countries has been supported by the President and the government, too, in particular, by the Industrial Development and Trade Ministry. Large-scale and systematic work is underway to interact with foreign countries, to develop and introduce a variety of mechanisms to support export-oriented enterprises.

The 15th International Economic Forum "Russia - Islamic World: KazanForum 2024" is being held on May 14-19 in Kazan. This year's keynote is "Trust and Cooperation." The main goal of the forum is to strengthen trade and economic, scientific and technical, social and cultural ties between Russian regions and the countries of the Organization of Islamic Cooperation (OIC), as well as to promote the development of the Islamic financial system institutions in Russia.