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Russia mulls possibility of building plant in Saudi Arabia — investment fund CEO

Russia mulls investment in Saudi Arabia's travel industry, according to the Russian Direct Investment Fund CEO
Head of RDIF Kirill Dmitriev  Andrei Makhonin/TASS
Head of RDIF Kirill Dmitriev
© Andrei Makhonin/TASS

RIYADH. October 30. /TASS/. The Russian Direct Investment Fund (RDIF) is discussing with the PIK Group of companies the possibility of building a plant in Saudi Arabia, as well as the developer’s participation in the construction program in that country, head of RDIF Kirill Dmitriev told reporters on the sidelines of the Future Investment Initiative forum, which is underway in Riyadh.

"Yesterday, we advanced far ahead on the topic of tourism and construction in Saudi Arabia. We discussed with the PIK Group a possibility of building a plant in Saudi Arabia and the group’s active participation in the large-scale construction program underway in Saudi Arabia," he said.

PIK is the largest Russian developer implementing comprehensive projects in ten regions of Russia with a focus on Moscow and the Moscow Region. PIK has been operating on the market since 1994 and specializes in the construction of comfort-class housing. Sergei Gordeyev is the Group’s main shareholder (59%), VTB Bank holds 23% in PIK Group.

Investments in travel industry

RDIF discusses investments in travel industry projects in Saudi Arabia with large Russian companies, the head of RDIF went on.

"As for tourism, we are working with a number of major Russian companies so that they invest in various tourism projects in Saudi Arabia and, accordingly, participate in the construction of the infrastructure, because Russian citizens, those who are Muslims, show great interest in tourism in Saudi Arabia," he stated.

In September, Saudi Arabia announced introduction of tourist visas for foreigners from 49 countries, for the first time in its history.

For the first time the kingdom voiced plans to issue tourist visas in late 2017 and promised to launch the process in 2018. Until recently, only potential workers and Muslims who made pilgrimages to the holy places of Islam, or those who came to the kingdom on business trips, received permits to enter the country.

Currently, the kingdom authorities are determined to boost the tourism industry. According to experts, the tourism sector will contribute to the diversification of the economy and reduce its dependence on energy exports. By 2030, Saudi Arabia plans to receive 30 million visitors per year. Now only 16 mln people visit Saudi Arabia annually and there are almost no tourists among them. However, in the near future, Saudi Arabia expects revenues from tourism to amount $47 bln annually.