Russia’s trade and investment into the Middle East is rapidly developing, with relations both through the Gulf Cooperation Council and the Arab League all helping boost bilateral trade by 25% during 2025. Partially driven by the developments along the INSTC, and new regional free trade agreements, we provide analysis of the growing Russia-Middle East economic partnership. Discover trade statistics, investment flows from the GCC, and business opportunities for companies in both regions.
Bahrain is not a major energy play in the Middle East but is becoming important in grain transhipment. We look at the latest bilateral discussions between President Putin and the King of Bahrain.
Russia has ratified a bilateral free trade agreement with the UAE, making it possible for investors from either country to set up 100% owned companies in each others countries in moves especially pertiment to the services sector. With bilateral trade already over US$12 billion, the move is a strong boost to the UAE business sector during difficult times in the Middle East and is illustrative of Russian longer-term investment planning.
Russia’s grain exports to Egypt have increased by 15% this year to date, while the two countries are also discussing the creation of a grain exchange and developing a food security export hub for countries in Africa and the Middle East.
Russia’s Deputy Prime Minister, Mikhail Mishuston, had met with the President of Turkmenistan, Serdar Berdimuhamedov, in Ashgabat to discuss significant bilateral trade and investment issues. Both are also attending the CIS Annual Heads of Government Meetings. Russia-Turkmenistan developments are being sped up due to the need to create alternative trade routes with Iran.
Russia is to expand its Islamic Finance services sector based on the Bahrain model. Several Russian republics have significant Muslim populations, while the aim is also to attract Sharia-compliant inbound foreign investment into the Russian economy.
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Iran has provided its latest ‘peace proposal’ to the United States, which includes the transfer of its nuclear material to Russia for safekeeping. Washingtton had previously insisted it takes possession. Initial reactions from President Trump concerning this new suggestion are positive while President Putin has stated that Russia is prepared to assist.
The Presidents of Russia and Turkmenistan have held bilateral discussions concerning the strengthening of the strategic partnership and cooperation in the trade, economic sectors. This is almost certainly have involved the position as concerns Iran, with both Russia and Turkmenistan fellow Caspian states and able to assist Iran develop its northern coastline and logistics away from problems to the south and the Strait of Hormuz.
Russia’s use and development of the Caspian Sea evades United States, European and NATO’s capabilities and is becoming a crucial supply chain in support of Iran. We examine how this is developing and what it means for regional logistics and trade development.
Russia is discussing visa-free arrangements with Bahrain, Kuwait and Malaysia. If approved, this would bring the number of countries that Russian nationals can travel to either visa-free or visa-on-arrival to 127.
Russia is enhancing its marine section of the INSTC to better support transport and logistics links to Iran, with the Volga-Caspian route undergoing substantial improvements to better connect Russia’s southern Urals regions with markets in the Middle East. We provide a detailed overview of these extensive development plans.
Russia’s President Putin gave a detailed speech on May 9 (Victory Day) in which he discussed his thoughts and Russia’s strategy as concerns its immediate direction towards the Global South. He commented specifically about Central Asia, the Middle East, South Asia and China as well as Europe, and how he sees global developments pan out. This article will be of interest to all Russia-watchers, geostrategic analysts as well as politicians in the West and Global South.
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