RUSSIAN TECHNOLOGIES IN THE ARAB MARKET

The problem of the lack of sufficient fresh water in the United Arab Emirates for a long time has been successfully solved by desalination of sea water. However, the UAE government does not give up the opportunity to improve this process by introducing the latest scientific and industrial technologies.
On April 7, 2004, an international meeting was held in the emirate of Ras Al Khaimah on the problems of improving the efficiency of the process of desalination of sea water and the processing of waste from desalination plants.
The meeting was attended by members of the government of the emirate Ras Al Khaimah, representatives of the UAE Federal Ministry of Water and Electricity, a representative of the CCI of the Russian Federation in the UAE, representatives of the investment program commission under the Moscow government, and leaders of the Russian NGO PROMECO (Chelyabinsk). As a result of negotiations, NPO "PROMECO" received the exclusive right to install a desalination plant of Russian production, as well as the right to a license for the production and sale of fresh water.
According to the agreement, the desalination plant of NPO "PROMECO" will introduce the latest technology for the treatment of desalination waste, which will several times reduce the cost of produced fresh water and increase the efficiency of the desalination process, as well as improve the environmental performance of the environment. In the future, the possibility of upgrading all desalination plants in the UAE is being considered.
“The main task we consider is the development and implementation of high technologies in the field of processing of industrial waste and the search for alternative sources of industrial raw materials,” says Igor Nuyaksov, Director General of NPO PROMECO. NPO PROMECO is a young organization, but its members are quite mature experienced teams. The TOR scientific and technical center has been in the market for new technologies for more than 15 years. During this time, the team investigated almost all large dumps of ferrous and non-ferrous metallurgy enterprises, oil chemical industries, coal and mining industries. Specialists of EcoOil CJSC, also a member of NPO PROMECO, have been cleaning oil pollution, collecting oil from the water surface and separating water, oil and gas when cleaning oil lakes for more than 30 years. Production company "Alloy" is engaged in the processing of spent catalysts in the petrochemical industry and the creation of new types of catalysts. "
For a long time, the NGO "PROMECO" collaborates with the University of Sharjah Emirate. Company executives and scientists held working meetings with the University’s specialists, as a result of which a cooperation agreement was signed.
The main direction of joint work of NPO "PROMECO" and the University of Sharjah Emirate is the development of manufacturing technology based on silicate concrete of building products of increased strength (800-1000 kgf / cm2) and water resistance, which can be used in the construction of multi-storey buildings and durable foundations.
NPO PROMECO also has business relations with companies in Saudi Arabia, Kuwait, and Iran.
In April 2004, the company's management took part in the VII International Investment Forum "Moscow-Invest 2004" in Abu Dhabi.
At the opening of the forum, a report on the main areas of investment was made by the President of MIBA, Moscow Mayor Yu.M. Luzhkov. In his speech, he drew attention to the opportunities available for supplying low-capacity desalination plants to the UAE.
The directions of work of NPO "PROMECO" are very close to the interests of the Moscow government, therefore, at the moment there are several promising areas for joint work not only in the UAE, but also in Russia.

Russian business
“Arabian Russian” - achievements and prospects.
Mr. Grigory Fomin, Managing Director of the group of companies, answers the questions of our correspondent.

Grigory Fedorovich, could you briefly tell our readers about which commercial structures are included in your group?
To say that our group includes only commercial structures is not entirely correct. Today we have a unique composition in the United Arab Emirates with a very high registration status - these are commercial structures, state and public. And if you asked a question regarding commercial structures, then let's start with them.
Our commercial “shoulder” is the Arabian Russian group of companies, which today includes professional companies (consultations, market reviews, marketing research, etc.), trading companies (import, export, re-export, organization of temporary storage warehouses on the territory UAE, consignment schemes) and even manufacturing companies, such as, for example, "Arabian Russian Jordan Art", which is engaged in high-quality decoration of expensive car models. It should be noted that the number of our commercial companies is constantly growing and we intend to develop more and more new business areas in the UAE.
In addition, we are representatives in the UAE of a Russian public organization, the Chamber of Commerce and Industry of the Russian Federation, and, very importantly, our organization includes the state organization, the Russian Trade Center, whose main task is to develop bilateral relations between Russia and the United Arab Emirates .
Your group has been working in the United Arab Emirates for three years. What has been done during this time, what events would you especially note?
Let's do it in chronological order. June 2001 - the Arabian Russian Marketing Management professional company was registered in Dubai, a month later a trading company was opened in the Jebel Ali Free Economic Zone - Arabian Russian Trading Relations. In 2002, an agreement was signed with the Chamber of Commerce and Industry of the Russian Federation on the representation of its interests in the UAE. Six months later, the first “Trade Center of Russia” in the region is registered. 2003 - an agreement was signed with the Jebel Ali Free Economic Zone to represent the interests of the SEZ in Russia and the CIS countries. May 2003 - the Arabian Russian group of companies, together with the Moscow publishing house Here and Now, as the managing company, launched the Russian-language travel guide for the UAE Keys of the East. The end of 2003 - the Arabian Russian Jordan Art company joined the group of companies. The beginning of 2004 - several Russian companies and regions send their representatives to us for permanent work. Among them, the leading Russian manufacturer of office furniture company Felix, watch factory Chaika, the administration of the Yaroslavl region.
In 2003, the permanent exhibition "ARABRUSS 2003-2004" was opened, which presents samples of goods and equipment of the largest Russian manufacturers - Chelyabinsk Tractor Plant, Uralvagonzavod, furniture company Felix, Sibnnefteavtomatika, Tomsk Electromechanical Plant, Samara company Electroshield ", Energomera Corporation and many others. Currently, the exposition continues to work successfully.
You say that you plan to expand your sphere of interests. What areas of development do you consider promising? Please tell us more about this.
We continue to work actively in the field of trade, but recently we have been increasingly interested in the industrial sector. The United Arab Emirates is developing rapidly, and a lot of money is being invested in the creation of industrial infrastructure. It would be wrong for us to participate in this only as suppliers of raw materials, materials and equipment. We have done a lot of preparatory work and today we are ready to fulfill the functions of contractors in the UAE in such areas as construction, earthmoving, as well as freight and passenger transportation. At present, the issue of building a number of industrial enterprises according to Russian projects, for example, desalination plants, is being studied. Now we are implementing a project to create a technical and shopping center in Dubai for service, repair and maintenance of Russian-made equipment.
You raised the issue of investment. The United Arab Emirates attracts many Russians who come to the country as a country where it is possible to reliably and profitably invest money. What can you recommend to potential investors?
Yes, indeed, in recent years, the United Arab Emirates has firmly established its reputation as a country with a favorable investment climate. The country's leadership is doing everything possible to attract foreign investors to participate in local projects.
For our part, we not only try to convey information about existing projects to Russian investors, but also actively participate in the creation of objects for direct investments, using the resources that we have today. To make it clearer, I will give an example. Today we have a certain amount of heavy equipment produced in Russia. To promote it on the market, manufacturing plants approved the option of transferring the machines to trial operation. To implement this plan, we register companies in the UAE that will either lease Russian equipment, or will operate this equipment themselves. Under such a scheme, Russian plants allocate resources - Uralvagonzavod, for example, is preparing to ship a batch of excavators and loaders.
And now look: we have orders for the work, we have a company that has the right to carry out these works, and we have a certain amount of equipment. When we say "a certain amount", this means that the equipment that we have today is not enough to carry out all the work. And that is precisely why we offer Russian investors to invest in purchasing this equipment from manufacturers and delivering it to the UAE under real contracts, including government ones. For our part, we take on the issues of administration, business management, providing orders, organizing maintenance and repair of equipment.
The scheme is simple and understandable, but can Russian equipment compete with foreign-made equipment - after all, Japan, the USA, Korea, and other countries are represented on the market?
As I have already said, this is not the first day we have been dealing with issues related to Russian goods and heavy equipment in particular. The situation is very favorable for the Russian manufacturer: with good quality equipment, we can offer it here at a price 25-30% lower than the price of foreign analogues. This is not such a noticeable difference in order to force us to buy our equipment, but it (this difference) is enough so that we can successfully compete in matters of rent and contracting.
OK, we figured out the heavy equipment and its rental. Let us return to the topic of sales of Russian goods - why, even with such a significant difference in price, sometimes there are problems with the sale of products?
Before I answer you, I would like to correct it: far from all Russian products can compete with foreign ones in price. There are reverse examples.
Now I answer the question. Yes, the price difference is palpable and in many cases quite sufficient. The problem here is different: local partners do not believe in the seriousness of the intentions of Russian suppliers. I would ask for this to be highlighted. They do not believe that Russian manufacturers with their goods here seriously and for a long time, they do not believe that Russian manufacturers did not appear here to make quick money and escape. In this case, it does not matter what you are trying to trade - bulldozers or nested dolls. In this regard, I will say this: the market will open to those who succeed in convincing the buyer of their thoroughness and long-term intentions. There are many ways to achieve this, but by inventing them, in most cases you invent a bicycle - everything has already been invented before us. Today there is no more reliable way to prove the seriousness of your intentions than to start creating joint ventures (JVs) and assembly plants in the territory of the United Arab Emirates.
What do you call a joint venture?
As applied to the sphere of trade, by a joint venture we mean a structure that appears as a result of the addition of efforts to promote goods in the market of a product manufacturer and an already existing and actively operating company in the local market. As a rule, this problem is solved by sending company representatives to the United Arab Emirates and with their further active participation in the sales process. In this case, you need to consider all options - from sending a single employee to opening separate offices, specialized stores, organizing a network of retail and wholesale sales, creating service and repair points.
If we are talking about the manufacturer, then in most cases the ideal option for them is the organization of assembly plants in the UAE. The United Arab Emirates is almost an ideal place for this: there are several Free Economic Zones in the country offering preferential tax conditions - there are no import and export duties, and there are no taxes on income of legal entities and individuals. In addition, the Emirates have a well-developed transport infrastructure and banking system.
Thank you, Grigory Fedorovich. At the end of the conversation - what would you wish the readers of our magazine?
For businessmen starting work in the UAE, I would like to wish them success in exploring the rich and promising market of the United Arab Emirates. Tourists coming to the UAE would like to wish a good rest, good shopping, warm weather and gentle sun. And I also want the Russian Emirates magazine, the first issue of which you are now holding in your hands, to continue to please you with interesting materials, useful and, most importantly, truthful information.