Abu Dhabi’s Mubadala Investment Company (Mubadala) and Russia’s largest bank Sberbank has signed a strategic agreement to explore possibilities for mutual benefits in various sectors.
The contract includes several areas of collaboration, including co-investment, long-term financing by Mubadala ventures in Russia and other territories, consultancy services, debt and equity funding, hedging FX and credit risk.
The deal will pave way for potential investments and cooperation in secotrs such as artificial intelligence, life sciences, cybersecurity, telemedicine, education, venture capital and Islamic finance. A more comprehensive roadmap detailing engagement and cooperation plans across these verticals is being jointly developed by Sberbank and Mubadala.
The potential co-investment schemes in both the Middle East and Russia will be unlocked by the strategic cooperation between Sberbank and Mubadala. And also it is expected to expand bilateral trade between companies in both regions.
Khaldoon Khalifa Al Mubarak, Group CEO and MD, Mubadala said: “We’re pleased to formalize our relationship with Sberbank and establish a new and exciting platform to unlock investment and financing opportunities in Russia and the UAE.
He also added that “We’ve successfully invested in Russia over the last decade, and with the establishment of Mubadala’s Moscow office last year coupled with today’s new partnership with Sberbank, we are in a position to further broaden our presence in Russia.”
“The signing of an agreement with a reputable international investment company such as Mubadala reflects a deeper interest from Gulf countries’ in opportunities within Russia and vice versa. Today, Russian businesses are showing considerable development potential. We are becoming pioneers in financial collaboration between Russia and the UAE and are confident that the horizons of this partnership will continue to expand. This strategic agreement exhibits a mutual understanding regarding the main areas of cooperation, including joint investments, support for innovative projects, and development of digital technology; as well as our readiness to apply our expertise in these areas to the fullest extent.”
By the end of 2020, Sberbank will establish a presence in Abu Dhabi in accordance with commitment. It aims to support the bank’s traditional and Islamic finance client’s ventures in cooperation with funds, financial institutions and other Middle East institutions.