Rushan Abbyasov: "The Russian market is attractive to investors from the Middle East”
Questions to the Head of the International Department of RMC Rushan Abbyasov on the issue of Moscow Halal Expo 2010
Dear Rushan hazrat, tell us about the mission of the upcoming exhibition Moscow Halal Expo 2010, what its objectives and target audience are and how you see the future of the project? What is its fundamental difference from traditional industrial exhibitions?
The idea of such an exhibition we have originated long ago but never had the opportunity to hold, as, firstly, the development of Halal industry in Russia itself after the Soviet period has structured no so long ago, and secondly, before holding such scale event we have had to accumulated considerable experience.
Of course, today the situation has changed for the better. The Center of standardization and certification “Halal” under the Russian Mufties Council has developed the standard – “The Regulations on the organization of production, trading and control over products, consumption of which are approved for Muslims – “Halal” standard”, and today the productions of goods in concordance with Islamic rules in Russia has developed greatly. Besides, due to the recent economic events, I mean the world economic crisis, many turned to the Islamic model of economics as an alternative form of economic system.
The difference of this exhibition from the rest is that only those exhibitors will be present whose products correspond to the Islamic rules.
At the upcoming exhibition both Russian and foreign companies will present their products, services and opportunities. What in the first place attracts foreign partners in the Russian market? And are there among the objects of foreign investors interest projects which Russian Muslims and their companies represent?
Russia is a rather attractive market for foreign businessmen and investors. The entrepreneurs from Arab-Muslim world are no exception. The financial sector is among the most attractive sectors for Muslim businessmen, especially the development of Islamic finance in Russia, minerals mining, oil and gas production, water treatment plants.
Of course, the region of Arab-Muslim world is quite wide and various, that’s why there is such specific interest of entrepreneurs from those or other countries.
For example, in the Middle East, especially in the Gulf countries, due to climate conditions, almost all agriculture products are imported, also the wide range of equipment is imported. And Russia in this regard can be a good partner for the Middle East.
The entrepreneurs from the South-East Asia due to the high development of Islamic finance market can be interested in the cooperation with Russia in the field of the organization of Islamic finance and establishment of Islamic finance institutes.
Muslim businessmen from Europe are interested in Russian market as well, especially in the field of Halal tourism in Russia, as we have very rich and diverse nature. I think, many would be interested to visit different Russian regions during the summer and winter. So we need to create and develop conditions for this.
However along with tourism we need to create favorable conditions for investment in Russian industry. Foreign investors should feel that for their business activities in Russia there are all needed conditions. This was emphasized by the Deputy Prime Minister Igor Shuvalov at the St. Petersburg Economic business-forum in 2009. He said that the level of investment and mutual trading would depend on what conditions for investment would be created in Russia and how comfortable the investors from Arab-Muslim world would feel in Moscow.
We should take into account that businessmen and investors from Arab-Muslim world know quite little about the Russian market. They have no confidence in the reliability of Russian companies and in the legal protection of their interests by Russian courts.
To participate in the Exhibition Moscow Halal Expo 2010 we attract the public authorities, as we will present projects with the partial public financing, that foreign partners could be sure in the reliability of the projects.
Of course, one of the most important factors in any partnerships – is having a partner – a Muslim who you trust. In the preparation for the Exhibition the Russian Mufties Council has repeatedly participated in establishing business-contacts with the entrepreneurs from the Arab and South-East Asian countries and Muslim-businessmen from Russia. We have already identified some projects of cooperation.
We hope that this Exhibition will be a platform where many parties will find each other and will establish business relationships. Moreover we have already started the registration for business-meeting that businessmen could establish necessary contacts and correspondence beforehand.
Tell us about how the preparation for holding the Exhibition. Why did you decide to merge it with Arabia Expo?
The idea of the exhibition itself was originated long ago, we intended to hold it last year, but due to financial crises we decided to postpone it for a year. The final decision on the timing of the exhibition was made in the autumn 2009 when the Chairman of the Organization of Islamic Call of Malaysia visited Moscow and watched the pavilions of the All-Russia Exhibition Center.
The Intensive stage of the preparation for the Exhibition started in January this year. It should be mentioned that in the process of preparation the important event took place – we decided to move the venue for the exhibition to Crocus-Expo and to hold it in the same dates of the Second Arab exhibition in Moscow together with Arabia Expo. The joint holding, according to our mutual opinion, will contribute to the effectiveness, scale and prestige of the both events, increasing the number of participants, heads of the national delegations from foreign countries and representatives of business circles. Nevertheless this decision was made with some difficulties so that the partnership and support from the leadership of Crocus groups was the important factor in this regard.
Given the fact that last year in the territory of Crocus Expo a new metro station was opened so that the residents of Moscow and guests of the capital can easily get to the venue for the exhibition. And the exhibition hall by the way is conveniently located for visitors.
The Organization Committee of the Exhibition meets on a regular basis. Permanently we communicate with the representatives of the Crocus-Expo and Russia-Arabic Business Council.
Almost every day we make important steps forward in the preparation to the event and in the raising its status.
One of the latest news in the exhibition program is the participation of the worldly famous TV channel “Al-Jazeera”, which will hold online broadcasting of the business program of the exhibition, and also will broadcast the session of state and academic circles on the theme of Russia-Arabic cooperation in the field of economics.
In addition to Al-Jazeera we have agreed with other Russian and International TV channels to highlight the event in real time – the TV channel “Vesti 24”, “Tatarstan New Century” and others.
We also deal with the representatives of the relevant ministries on the issue of the partnership in organizing and holding Moscow Halal Expo: with the Ministry of Economic Development, Ministry of Finance, the Ministry of Foreign Affairs, Ministry of Agriculture, etc. every day we receive call about the participation in the event.
By the way on the building the exhibition area we decided to divide all exhibitors into thematical sectors: meat production, milk production, ingredients, end products, semi-finished products, catering (restaurants, cafes), pharmaceuticals, clothing, cosmetics, tourism, publishing , Islamic finance, banking, insurance, Islamic investment, education, know-how, etc. – and we also tried to provide all other necessary things for convinience of the visitors.
The specific sector will be allotted to the catering, all products meet the Halal standards.
Much work is being done on the ways of organization the main themes of the Exhibition - the Halal products and Islamic finance.
We establish ties with key research institutions and educational institutions, ministries, producers, financial companies and businessmen, both Moscow and regional, we reach agreements with foreign organizations and companies on partnership and participation in the exhibition.
Any scale project for successful realization requires the favorable regime of the authorities even if they don’t directly participate in its organization. Is it worth considering Moscow Halal Expo 2010 as a part of realization of intentions, voiced by the leadership of the country to increase cooperation with the countries of Islamic world?
Absolutely. In addition to it there is a growing interest of the government to the theme of Halal and Islamic finance. As it has been already mentioned we received feedback from different ministries in this regard. This theme is certainly extensive and before the government pay little attention to it. So one of the event objectives is to draw attention of the government and foreign countries to the issue of Halal in Russia. As those movements that take place in this field in our country are still very small especially in contrast with the huge Muslim population and growing largely yet latent demand.
We believe that many challenges we should face jointly with the government and this applies not only to the development of cooperation with the Islamic world countries but also to the creation conditions for satisfying the needs of Russian population in Halal products and Islamic financer services as well as in the quality standards in everything for all Russian population.
Your Department has accumulated the experience in holding Muslim exhibition and much work done in theoretical, methodological support of the implementation process in Russia companies that operate on the Islamic economics principles. How close are we in the realization the real projects (banking, insurance, etc.) and what should be done yet?
Indeed, during a few years we have been participating in interreligious exhibitions in the All-Russia Exhibition Center, we saw the creation and development of many projects, associated with the production of goods and services for Muslims. Some of them were really successful and today all Russian Muslims know about them, others due to some reason were frozen or failed to develop.
Last years the number of projects associated in the development of this market is increasing. As for the Islamic finance today with just a little exception business has all opportunities to develop Islamic finance operations. In parallel the work on creation several insurance companies and organization of Islamic financial institutes is done. However this process still requires much time before Russian business and population will learn how to use such financial operations. More time will be needed to create Islamic bank. After all, if we look at the experience of those countries where amendments to the tax law has already been made, still not all at once arose.
We tries to use current time to fill gap in the level of knowledge in the Islamic principles of trading and finance, which unfortunately in Russia is at a very low level. Nevertheless those educational programs which we held jointly with the Moscow International High School of Business showed the interest to this issue from different circles of population and business and today we work on the further development and modernization of such programs. By the way the interest to run educational programs in the field of Islamic finance today is expressed by the major Russia state universities.
Nowadays we hold next intake to the short-education course “Islamic finance”, which is to take place as we expected immediately after the Exhibition.
Thank you for the conversation and good luck in your activities!
Naila Tardzhimanova
08.04.2010
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