Economic Zones World (EZW) plans to expand into Russia as part of its strategy to enter global markets, a senior official has revealed.
The company, part of Dubai World, will establish a joint venture with the Russian government in August to develop a network of special economic zones (SEZs), along with related infrastructure support systems, as part of the country's economic development programme.
The full scope of the agreement has yet to be revealed and EZW is not saying whether it is currently lining up any further acquisitions.
"In August we will be entering Russia as part of our international expansion program," Group CEO Salma Hareb told Emirates Business. EZW was setting its sights on major emerging markets and more expansion programmes would be rolled out for India, China and Africa, she said.
The Russian Government has regarded the development of SEZs as a high priority. Two industrial production zones, four high-tech zones and seven tourism zones are under development and there are plans for port zones. Russia has also drawn on EZW's knowledge while developing legal and regulatory frameworks for its zones that are intended to attract investment and drive business growth.
"Russia offers unprecedented investment opportunities in logistics, transport and the supply chain industry," said Hareb. "We have the necessary expertise to make the venture a success."
Trade relations between Dubai and Russia have risen to new levels in the past few years with total non-oil trade between the countries amounting to Dh4,745 billion in 2007.
Parent company Dubai World is planning to set up an office in Moscow this year to keep a close eye on investment opportunities that may arise in future.
Dubai World has recently been exploring major investment possibilities in marine terminals, logistics and rail transport with Russian partners. And the group has entered into agreements on various projects through its subsidiaries.
Port and Free Zone World, another Dubai World company, recently signed a co-operation agreement with Russian Railways to explore the development of supply chain infrastructure.
And DP World has a joint venture agreement with Vostochny Port for the operation of the Vostochny International Container Services, which is strategically located at the Pacific terminus of the Trans-Siberian Railway.