Annual Investment Meeting
On April 2 to 4 the Annual Investment Meeting 2017, one of the largest and authoritative meetings of the investors in the Middle East and Persian Gulf region, is held in Dubai (UAE). Over 10 thousands delegates from 165 countries are participating in the event. On the Russian side, the investment projects of the Republic of Tatarstan are presented. The delegation is headed by the President of the Republic of Tatarstan Rustam Minnikhanov, traditionally accompanied by the Head of Tatarstan Investment Development Agency Taliya Minullina. In the framework of the event, exhibition of the Republic of Tatarstan with demonstration of industrial, economic and investment potential of the republic was presented.
Uniqueness of AIM
Tatarstan organizes exposition at AIM every year since 2011. The forum is a good site to present investment opportunities of Tatarstan, establish new contacts and share experiences with foreign partners. Every year the delegation of Tatarstan holds productive meetings with government officials, companies and investors, agrees on cooperation at the event.
AIM's effect is that it serves as a beacon for attraction of investments and establishment of partnership. Dubai provides access to a huge consumer market with the population of 2,2 billion people (this is about the Middle East region, North and East Africa and Indian subcontinent). The diversification of the economy and infrastructure of Dubai offers good prospects for Russian companies to develop activities in the field of industry, machine engineering and hydrocarbon sector.
Bringing together the investment agencies of the world
Thus, on April 2, the session of World Association of Investment Promotion Agencies (WAIPA) was held, where the Head of Tatarstan Investment Development Agency Taliya Minullina participated as an expert and speaker.
Investing in the framework of sustainable development, new trends in economic, public-private partnership development, integration of the regional agencies in world investment community, as well as the factors which affect volume of direct investment and many other questions were discussed by the participants. Russia was represented by the Republic of Tatarstan as the leading region for the investment climate.
During the event, economic and investment potential of the Republic of Tatarstan was presented. In particular, the advantages of the investment infrastructure of the Republic were given in details. Taliya Minulina also invited all the participants to take part in the 9th International Economic Summit “Russia — Islamic World: KazanSummit 2017”, which will be held in May, 2017.
It should be reminded that in September 2011, Tatarstan Investment Development Agency joined the World Association of Investment Promotion Agencies (WAIPA) becoming the first representative of the Russian Federation joining WAIPA. In February 2013, at the meeting of the WAIPA General Assembly in Geneva Tatarstan Investment Development Agency joined the Steering committee of the World Association of Investment Promotion Agencies and was appointed as WAIPA Eastern Europe Director.
World leaders debates
Then the plenary session on the theme "Global Leaders Debate on foreign direct investment" was held in the framework of the Forum.
The plenary was attended by the the President of the Republic of Tatarstan Rustam Minnikhanov and the Head of Tatarstan Investment Development Agency Taliya Minullina from Tatarstan, and by Emir of Dubai, Prime Minister and Vice President of the United Arab Emirates Mohammed bin Rashid Al Maktoum from UAE.
During the examination of the exhibition within the forum, the Emir of Dubai accompanied by his entourage made a special visit to the exposition stand of the Republic of Tatarstan. Taliya Minullina told His Highness about Tatarstan's recent achievements, upcoming international events. He devoted more time, than required by the Protocol, for acquaintance with economic and investment potential of the region. The President of Tatarstan made a personal invitation to visit the republic in case of official visit to Russia.
Speaking at the forum's plenary session, Rustam Minnikhanov noted that the Republic of Tatarstan is among leading regions of the Russian Federation in the main macroeconomic indicators. The republic is the sixth among the constituents of the Russian Federation by the volume of the gross regional product. Tatarstan ranks first in National rating of investment climate and takes the first place in the rating of the innovative development of the constituent entities of the Russian Federation.
The increased competitiveness of the Republic's economy is closely linked to the high level of investments attracted. In recent years, Tatarstan is included stably into a number of the most attractive regions for investment, due to combination of high investment appeal and low investment risks. Foreign direct investments are more than just financing investment in economy, though it is crucial for Russia by itself. Foreign direct investments also represent the way to increase the productivity and technical level of Russian enterprises. Placing its capital in Russia, a foreign company brings new technologies, new ways of organizing production and direct world market entry with it.
«Greenfield» investments (started from the ground up): what are the benefits for the republic?
A number of issues were discussed at the meeting. In particular, whether "greenfield" investments are more useful for Tatarstan in comparison with other types of investments.
Today, on the territory of the Republic of Tatarstan, "greenfield" sites, when the investments are attracted to create new enterprise almost from scratch, mostly predominate among the objects of investment infrastructure. For the past 10 years, we have been working actively in this direction. Today, there are about 100 of such industrial sites. We choose the sites guided by the need to support local economy and create new working places. Foreign direct investments are primarily attracted there.
SEZ "Alabuga" is such an example. If in 2016 the total amount of the foreign investments received by the republic was about 261 million USD, the residents of SEZ "Alabuga" brought more than 217 million USD of this amount. Now, there are over 50 residents registered and 22 plants operating. In 2016 alone, 12 new residents entered. Private investment amount exceeds the amount of public investment in SEZ Alabuga's infrastructure 4 times. It is planned that the target 10 to 1 would be reached, with 10 rubles of private investors attachments for every ruble of public funds.
Tatarstan is integrated into the global economy
In addition, during the discussion, the President of the Republic of Tatarstan answered the questions concerning human capital development and training of the qualified staff, the necessity in a flexible tariff policy in the sphere of investments attraction, competition between foreign investors and domestic producers, integration of republican economy into the global economy.
"Do you pay attention on the producer of the products, equipment, car when you buy it in the market? The Chinese refrigerator "Haier" is produced in Tatarstan's factory, as well as the American "Ford" vehicle, or suspended ceiling "Armstrong", or Dutch thermal insulation "Rockwool". In Russian cities, in American fast food chain of restaurants "McDonald’s", coffee from Brazil is poured in a cup of the Finnish company "Huhtamaki", produced in Tatarstan! This is how much Tatarstan is integrated in global economy", - Taliya Minullina believes.
Business forum "Tatarstan - UAE: trade and investment cooperation"
The event was held in the framework of VII Annual investment Meeting (AIM) 2017.
The Head of Tatarstan Investment Development Agency Taliya Minullina presented economic and industrial potential of the Republic of Tatarstan.
In her presentation, she indicated that Tatarstan is one of the leading and industrialized regions of Russia: "We are an oil producing and refining republic. We have developed petrochemistry, manufacturing of automobiles, planes, helicopters, ships, engineering products. Tatarstan exports over 50% of industrial goods and almost completely provides itself with agricultural products. Special attention is paid to innovative development. The republic today is the leader of Russian national rating of the investment climate".
The Head of Tatarstan Investment Development Agency also reminded that the republic is a pilot region for implementation of the principles of Islamic banking and financing in Russia. In this sphere there are good opportunities for cooperation between UAE and Tatarstan.
"Our republic is interested in attracting emirate business and capital. We are happy to expand mutually benefitial ties and ready to provide all the necessary assistance. We are open for interaction and will be glad to discuss joint projects", - Taliya Minullina stated.
Then, in the frame of business-forum, direct meetings of stakeholders were held in the form of a question-and-answer session. Also the row of business meetings with representatives of delegations from different countries, including UAE, Central and South Africa, Pakistan and others was held.
The business-forum concluded with the signing of Letter of Intent on cooperation between Ak Bars Holding company OJSC and Emirate company ARG Group in the sphere of shipbuilding.
During the forum, the meetings of the President of the Republic of Tatarstan Rustam Minnikhanov with the Minister of Economy of the UAE Sultan Al Mansoori and senior managers of the Islamic Bank and finance of Dubai was held. The Head of Tatarstan Investment Development Agency Taliya Minullina also attended the meeting.
The parties warmly greeted each other as long-time friends It was noted that the UAE Minister of Economy already visited the Republic of Tatarstan to participate in Kazansummit-2014 and knows Rustam Minnikhanov personally.
Then, the parties discussed promising areas of cooperation. Some Tatarstani companies are establishing relations with the UAE. For example, there is a regional representative office of "KAMAZ" company in UAE, Zelenodolsk shipyard is also interested in this region. These enterprises participated several times in International Defence Exhibition (IDEX) and today it is necessary to retain the interest in them in Middle East, Asian and African countries.
Moreover, the UAE has traditionally been a favorite holiday destination for Tatarstani tourists. Today, a regular flight between Kazan and Dubai is carried out by the "Fly Dubai" airline.
The representatives of the Dubai Center for Islamic Banking and Finance also participated in the meeting with the Minister of Economy of the UAE Sultan Al Mansoori. The introduction and development of financial instruments of partnership (Islamic) banking in Russia were a special theme of negotiations. Today, the Republic of Tatarstan is a pilot region for the introduction of the principles of Islamic banking and financing in Russia. Therefore, Tatarstan is open for all-round cooperation in this area with the Dubai Center for Islamic Banking and Finance
"The representatives of business community of your country are permanent participants of International Economic Summit of Russia and OIC countries "KazanSummit". In 2014, you personally led the Emirate delegation. I invite you to visit KazanSummit-2017, which will be held on May, 18-20. We are always glad to see you in Tatarstan", - Taliya Minullina added in conclusion of the meeting.