Welcome speech of His Excellency Mr. Mintimer Shaimiev, the President of the Republic of Tatarstan, at the International Investment Conference held together with the Islamic Development Bank Group

Bismillah ir-Rahman ir-Rahim

Doctor Ahmad Muhammad Ali,
Participants of the Conference,
Ladies and gentlemen,

We are pleased to welcome you to the hospitable land of multinational Tatarstan, to its 1000-year-old capital city of Kazan. Ahlan wa sahlan! Welocme! Rahim itegez!

May I express my gratitude to the management of the Islamic Development Bank and its President for their assistance in organizing and holding in our republic the international investment conference with participation of representatives of financial elite of the Islamic world, leading trade and industrial companies. Such forum is taking place in the Russian Federation for the first time and we are thankful to the Islamic Bank for choosing Kazan as a host.

I think this choice was not incidental. The Republic of Tatarstan is successfully developing trade and economic and cultural relations with partners from many Muslim countries. We are united by rich historical, cultural and spiritual traditions that help promote understanding and constructive cooperation.

In 2005, the Russian Federation obtained the observer status in the Organization of the Islamic Conference. Initiating joint undertakings and projects, Tatarstan has every right to be proud of its contribution to the development of relationship between Russia and this influential international organization. Our republic is also an active participant in the work of the Group of the Strategic Vision "Russia - Islamic World", it cooperates with the Arab League, the Islamic Academy of Sciences, the Islamic Research Centre for Education, Art and Culture IRCICA and other organizations, in every possible way encouraging stronger cooperation with the Muslim world and re-confirming its role of Russia's "eastern gate". We are especially grateful to Professor Ekmeleddin Ihsanoglu, the Secretary General of the OIC, for his all-round assistance.

Standing at the crossroads of Europe and Asia, Tatarstan has long since been a link between the West and the East, preserving and developing traditions of the two great world religions and cultures - Islam and Orthodox Christianity. Thanks to the advantageous geographical position, our ancestors, who created the powerful state of the Volga Bulgaria in the 9th century AD, had extensive political, trade, cultural and, importantly, religious relations with the Arab caliphate and other Middle Eastern states. In the early 10th century, the Volga Bulgaria officially became the Muslim state, the fact being consolidated during the mission of the envoy Ahmad ibn Fadlan of the caliph of Baghdad Al-Muqtadir Billah. Since then, our land has been the northernmost outpost of the Islamic world.

Today, the development of relations with the Islamic countries is one of priorities of the Russian Federation, and our business community has a good opportunity to expand economic and investment cooperation.

We value the trust of Islamic business community and will aspire to create the most favorable working environment in Tatarstan.

The geographical position, well-developed transport infrastructure, highly skilled human resources allow the republic to build consistently the modern society with versatile and diversified economy. Tatarstan is one of the most dynamically developing regions of the Russian Federation, the large centre of Russian industry, research, mechanical engineering, oil production and refining, petrochemistry, aircraft and helicopter manufacture and agriculture. The major factor of socio-political and economic stability is the constructive interaction of cultures and religions, named "the model of Tatarstan".

The republic is proactively developing international and foreign economic relations. Over the last decade, Tatarstan's foreign trade turnover increased by a factor of 9.5, and export of more than 11. I am confident that such Tatarstan brands as Tatneft, КAMAZ, Nizhnekamskneftekhim, Kazan Helicopters, Tupolev planes, Kazanorgsintez and others are well-known in many Muslim countries.

Tatarstan’s gross regional product has increased by about 7 per cent over the past five years, and in recent years it was slightly above the Russian average. Last year, the republic celebrated a significant milestone in oil extraction – we passed the mark of 3 billion tons. At present extraction rates our reserves will last for at least another 30 years. Our republic’s subsoil also contains explored reserves of over 2 billion tons of heavy bitumen oils. Last year, following Canada, we started developing them on industrial scale.

We see strategic development of Tatarstan economy through introduction of scientific innovations into highly technological production, such as deeper processing of hydrocarbons. Oil-processing and petrochemical production facilities being built in the Republic will additionally provide us with capacity of processing 7 million tons of sour crudes. Another oil-processing complex of similar capacity will be built with participation of smaller oil companies.

Our main economic priorities lay in the development of petrochemistry, power generation, heavy engineering and agribusiness. We have key leading companies and research centres working in these fields, all possibilities to keep and improve our competitiveness in the dynamically developing international economy.

Our banking system is developing dynamically and on the whole steadily. Tatarstan has maintained its lead with respect to a number of banking indicators, both quantitative and qualitative. It is still fourth in the Russian Federation in terms of the total number of lending institutions, and third (after Moscow and St. Petersburg) in terms of the number of large banks. The Republic of Tatarstan shows stable leadership in the Volga Federal District in terms of the total assets of lending institutions.

One of the main principles of economic policy in our republic is supporting transition to knowledge-based economy. We give importance to increasing effectiveness of management at all levels, establishing supporting infrastructure for implementation of innovations (Tatarstan has a network of operating technology parks), shaping an integrated system of innovational education.

Tatarstan is home to one of Russia’s two industrial production type special economic zones, called “Alabuga”. Participants have been offered large statutory tax relief, and many foreign companies already declared their intentions to participate, using the site for implementation of their projects.

For instance, two weeks ago, in presence of the Chairman of the Government of the Russian Federation, Vladimir Putin, production of FIAT Ducato automobiles was launched in Alabuga. Further, in the course of St.Petersburg economic forum, Sollers group (previously known as Severstal-auto) and Italian FIAT signed an agreement on establishing a joint-venture on production of FIAT-Linea cars. Another example would be the groundbreaking ceremony in the construction of heat-insulating materials production facility of Danish company Rockwool International, which took place in the beginning of June. Once complete, this plant would be the largest Eastern European producer of non-combustible heat insulators.

Small business growth is another priority sphere for Tatarstan. Its present share in the gross regional product of the republic is 21 per cent, and by 2010 we want to see it reach 30 per cent.

Significant growth of our economy leads to growing demands for energy. By 2030, the republic is to increase its power-generating capacity from current 7 thousand MW up to 11 thousand MW. We understand that such a large-scale effort will not be possible without strategic long-term investors.

Thus we attach great importance to legislative as well as organizational improvements necessary for creating favorable investment climate, undertaking further efforts to lay out clearly our long-term policy principles for the interaction of state and private capital.

Growing number of foreign companies take part in the economic development of Tatarstan. We actively draw on experience and the finances of leading international organizations, including the World Bank and the European Bank for Reconstruction and Development. Jointly with them we implement a number of projects of great social importance. As you know, in May 2007, the European Bank for Reconstruction and Development held its Annual Meeting of the Board of Governors in Kazan, which served as an additional impetus for the growing interaction of our republic’s businesses with their foreign counterparts.

We are also looking forward to fruitful work with the Islamic Development Bank.

I would like to inform you that on May 31 of the current year, Kazan won the right to host the 2013 World Summer Universiade. These games, organized by the International Federation of University Sports (FISU) headquartered in Brussels, are second after the Olympics. The event promises to be a highlight in the life of Kazan, Tatarstan and all Russia. Student games will give a strong impetus to increasing popularity of sports, healthy life styles, and will further development of the infrastructure in the city and throughout the republic, strengthen our international contacts. I am pleased to welcome the sporting youth from your countries to take part in the 2013 Universiade in Kazan.

Ladies and Gentlemen,

I am sure that this high forum will help strengthen and further cooperation between representatives of financial and business circles, implement mutually beneficial projects. I would like to use this opportunity to propose that the Republic of Tatarstan be a permanent host of such international investment conference. This will certainly be a new impetus to closer relations of our republic and the Russian Federation in general with the Muslim world.

May I wish you success in your work, health and prosperity!