KAZANFORUM 2024: What will Change in Finance and Logistics of Islamic Countries

More than 20 thousand participants from 87 countries and 87 regions, including 40 diplomatic missions from Europe, Asia, and Africa took part in the XV International Economic Forum “Russia – Islamic World: KazanForum” 2024. About 180 events took place within the framework of the forum. The result was the conclusion of 120 agreements.

The expert participants spoke about new opportunities and advantages in finance and logistics that cooperation between Russia and the OIC countries opens up.

“90 percent of trade with EAEU member states is in national currencies. This is a process that is underway today. Our economy grew by 3.6 percent. But importantly, the economies of the countries that maintain close relations with Russia have also grown.

Kazakhstan – 5.1 percent, Kyrgyzstan, Turkmenistan, Uzbekistan – over 6 percent. Tajikistan’s is 8.3 percent. This is the best proof that we are developing,” said Alexei Overchuk, Deputy Prime Minister of the Russian Federation.

Russia’s trade turnover with OIC countries has increased by 31 percent, said Deputy Prime Minister Marat Khusnullin. In the development of trade, he noted the special importance of the constructing international transport corridor “North-South” (includes railway, water and road routes through the Caspian region), along some branches of which cargoes are already actively flowing.

“We have a number of agreements signed with Iran – both on railway communication and road transport. We are very actively working to find additional logistics opportunities with the Gulf countries.

A good, solid delegation with people who make decisions has arrived. We will build routes alternative to the Suez Canal”, – assured the Deputy Prime Minister of the Russian Federation.

According to the participants’ estimates, the new corridor can reduce transport time by up to three times. For example, between the seaports of Mumbai (India) and Murmansk (Russia).

If by sea cargo can go 45 days, then by railway through Kazakhstan “can reach in 15 days,” Deputy Prime Minister of Kazakhstan Serik Zhumangarin gave an example.

“The difference, first of all, is the timing. Time is money – this is an axiom,” he noted. And said that the development of the eastern branch (construction and modernization of railway tracks, and stations) of the North-South corridor is becoming a priority for the region and in the future could turn this section of the railway into a large logistics hub.

The annual capacity of the route is 10 million tonnes of cargo (last year 2 million tonnes passed through).

With the development of logistics and investment in joint projects, trade turnover between Russia and the UAE is growing and could exceed $9bn, UAE Deputy Economy Minister Abdullah Al-Saleh said.

Russian companies, he said, are investing in projects in the logistics sector, seaports, tourism, service, high technology, industry, and even in the production of medicines and renewable energy. “The Emirates, together with Russia, are paying attention to investments in these areas. It is a mutual process,” he emphasized.

“The UAE’s director of ports has already indicated an increase in trade turnover, especially in the port of Dubai. There are a lot of export and import centers here. Undoubtedly, the Emirates have great opportunities to connect these ports with the Russian Federation, Russian centres, and industrial parks that have been developing recently,” Abdullah Al-Saleh assessed the future prospects.

Russian companies, he said, are investing in projects in the logistics sector, seaports, tourism, service, high technology, industry, and even in the production of medicines and renewable energy. “The Emirates, together with Russia, are paying attention to investment in these areas. It is a reciprocal process,” he emphasized.

“The director of UAE ports has already pointed to the increase in trade turnover, especially in Dubai Port. There are so many export and import centres here. Undoubtedly, the Emirates have great opportunities to connect these ports with the Russian Federation, Russian centres, and industrial parks that have been developing recently,” Abdullah Al-Saleh assessed the prospects.

The development of projects in logistics will not only contribute to economic growth, said Iranian Deputy Foreign Minister Ali Bagheri. Participation in the design and development of transport routes, he said, brings many countries together and contributes to maintaining stability and peace in the region.

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“The corridors are not exclusively routes for the transport of goods, but they determine the direction of development,” emphasized Ali Bagheri.

The position of the Russian leadership also plays a big role in the development of relations with the countries of the Islamic World, when in 2003 the president proposed to include the Russian Federation in the OIC observers, and then the annual KazanForum appeared, reminded Rustam Minnikhanov, Rais of the Republic of Tatarstan and Chairman of the Russia-Islamic World Strategic Vision Group.

“Such strategic issues as the North-South corridor, Islamic banking, halal lifestyle, expansion of our tourist contacts – all this comes with the support of the leadership of our country, our president,” Rustam Minnikhanov pointed out.