Uae President in Russia for BRICS Summit: Understanding deepening Uae-Russia economic cooperation

Uae President HH Sheikh Mohamed bin Zayed arrived in Russia on Sunday for a high-profile visit. He attended a special dinner hosted in his honour at Russian President Vladimir Putin’s official residence. Both leaders spoke of strengthening bilateral relations.

His Highness thanked Putin for his commitment to bolstering Uae-Russia ties. During his time in Russia, Sheikh Mohamed is also going to participate in the 16th BRICS Summit from October 22 to 24. It’s set to be the Uae’s first participation in the Summit as a member.

The official Emirati delegation includes Sheikh abdullah bin Zayed, deputy prime minister and foreign minister, Dr Sultan al-Jaber, minister of energy and advanced technology, and Dr Thani al-Zeyoudi, minister of state for foreign trade.

Uae and Russia share a deep strategic partnership

If history is taken into consideration, the Uae and Russia shared a relatively modest bilateral relationship, characterised by cautious political engagement and limited economic interactions. But things have considerably changed over the past couple of decades.

In the recent past, both countries have been recognising mutual benefits in closer cooperation in different sectors. For the Uae, this transformation is based on a strategy to diversify the country’s economy from oil and seeking more opportunities in other sectors.

For Russia, the Uae represents a strategic location as a trading hub. In more recent years, Russia started to cement its bilateral partnership. Russian exports gained significant momentum and an expanding Russian diaspora emerged in the Emirates.

Primary drivers of Uae investments in Russia

The main focus of Uae investments in Russia is a diversified economic portfolio. Mubadala Investment Company and other similar entities have been at the forefront of this initiative. These firms have made substantial investments in different Russian sectors.

1. Energy sector

In this burgeoning sector, the Uae investments in Russian projects have been sizeable. Mubadala has taken a notable stake in several Russian energy companies. In 2013, the firm and the Russian Direct Investment Fund established a co-investment programme.

2. Infrastructure and logistics

The Uae-Russia economic relations are considerably related to investments in infrastructure and logistics. The Emirates has made substantial investments in Russia’s transportation and logistics sectors, seeking to improve trade routes.

3. Modernisation of agricultural sector

Several Uae companies have also contributed to the modernisation of the agricultural sector in Russia. This sector has become an important area of Uae-Russia partnership. Russia has a massive arable land and thus, a major agricultural producer globally.

4. Technology and innovation

In the recent past, the Uae has been expressing sizeable keenness in developing its technological expertise. The Gulf state has found Russia as a great partner in this field because of the latter’s advanced technological capabilities.