Opportunities for Investments and the Prospects of Doing Business in Russia
Being the 6th largest economy in the world by purchasing power parity (PPP) and the geographical bridge between Europe and Asia, Russia can play a significant role in strengthening economic dialogue and co-operation with main partners in both regions.
With a vast landmass, extensive natural resources, a consumer market of over 140 million people and acute infrastructure needs, Russia offers an immense wealth of investment opportunities. In addition, the country has established 26 special economic zones (SEZs) with specific legal status and economic benefits to attract Russian and foreign investors. Cumulatively, Russia’s SEZs currently houses more than 550 companies, with more than 90 foreign investors from 29 countries.
The forum aims to provide a long-term platform to facilitate business partnerships and develop joint investments, collaboration and trade facilitation. The forum will also allow the participants to deliberate on the opportunities, challenges, threats and the road forward towards improved economic integration between Europe and Asia, particularly OIC countries, and the role that alternative finance mechanisms such as Islamic finance can play.
Business Compliance and Ethics
Doing business with Russia, as with any other emerging country, is likely to bring some challenges and take time to develop. However, the potential rewards once the teething problems are resolved can be substantial and should not be disregarded. The forum will focus on the best practices concerning various industries in Russia.
Introduction of Alternative Financial Instruments that are aligned with the Principles of Partner Financing to Help Russia’s SME Sector
The Russian legislation allows to apply financial instruments of partner financing without additional legislative eases and changes. The most suitable and favorable financing tools for application in Russia will be presented at the forum. The comparative analysis of standard and partner financing will also be highlighted, while selected projects for participation on the terms of partner financing will be showcased to potential investors.
The current economic backdrop in Russia calls for an alternative asset-based financial mechanism to finance large-scale projects and to mobilize domestic and international resources. It will be of particular help for Russia’s burgeoning small and medium enterprises (SME) sector.
The development of the SME sector is a priority for the Russian government, which adopted an SME Development Strategy through 2030 and launched a three-year priority project to support individual entrepreneurs and small businesses. With access to credit cited as the most important constraint on the operations and growth of Russian SMEs, the asset-backed finance and risk-sharing nature of Islamic finance can encourage entrepreneurship and promote social and economic development in Russia.
Signing of the Constitutive Treaty of “Agency on Economic Interaction of the Countries of Eurasia and the East” and Business Matching Opportunities
During the forum, the Constitutive treaty of “Agency on economic interaction of the countries of Eurasia and the East” will be ratified and signed by the Islamic Development Bank (IDB), IAIB, Sberbank, the Ministry of Economic Development, Minpromtorg, the Ministry of Finance, and the Customs Services. The framework will establish a working platform for interaction between partner countries that will focus on business matching opportunities, the development and implementation of business projects and the promotion of long-term regional economic co-operation.
The forum will allow participants to have in-depth discussions with project owners of several investment opportunities in Russia and will allow investors and various stakeholders to network and establish business relations with their counterparts and other leading representatives from the business community.