UAE firms to invest $800 million in Russia
Dubai, September 17, 2010
Two UAE-based firms have signed joint venture agreements with a Russian company to invest $800 million in the country's infrastructure and real estate sectors.
Ports and logistics group Gulftainer and real estate developer Damac today signed deals with Prominvest, the investment arm of Russian Technologies. Gulftainer will invest $500 million, while Damac plans to spend $300 million.
The agreements were signed in the Black Sea city of Sochi in the presence of Vladimir Putin, Prime Minister of Russia.
Gulftainer is a subsidiary of the Crescent Group of companies and the largest private port and logistics operator of the Middle East. Badr Jafar, executive director of the Crescent Group and vice chairman of Gulftainer, and Mikhail Shelkov, CEO of Prominvest were present at the signing.
The Gulftainer Russian Technologies venture will pursue investments and management opportunities in the complete logistics chain within the Russian Federation and the rest of the Commonwealth of Independent States (CIS) including strategic port assets and related infrastructure.
The joint venture also announced plans to aquire port and logistics assets in Russia and the region, some of which have already been identified by the partners.
Damac will invest in real estate projects, including the facilities for the 2014 Winter Olympic Games in the Black Sea resort city of Sochi.
Jafar said: 'This is another major demonstration by the Crescent Group of its commitment to building strong economic ties with our Russian brothers, pulling together the synergies and strengths in our respective areas of expertise. We are very proud to be associated with our partner Prominvest and Russian Technologies.
'The rapid growth of the Russian economy will increase demand for more efficient and a wider range of port and logistic services - Gulftainer and Prominvest will together meet that challenge using Gulftainer's well established reputation for optimum efficiency in the ports and logistics industry, plus the vast expertise and local knowledge of the successful Prominvest organisation in Russia,' he said.
Hussain Sajwani, chairman of Damac Properties, said: ''Damac Properties, as the Middle East’s largest private luxury developer, continues to pursue growth by expanding and diversifying in international markets. We now have projects in North Africa, Jordan, Lebanon, Qatar and Saudi Arabia.
'With a proven track record of developing and delivering luxury properties and a strong capital position, we are continually assessing investment opportunities in other territories. 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 and a strong regulatory and transparency framework,'' he said. - TradeArabia News Service