Yekaterinburg lacks quality investment projects, experts claim

28 May 2010 (12:30)

‘Yekaterinburg’s key problem in terms of attracting foreign investment lies in the lack of good quality projects. Most of the projects that could actually interest international investors have not been built yet. On the other hand, one can find a market niche in virtually any field here, as the quality supply is still limited. Until very recently, for example, Yekaterinburg had no five-star hotels at all. Now this niche has been taken by the Hyatt Hotel,’ Cushman & Wakefield/Stiles & Riabokobylko’s General Director and Partner Sergey Riabokobylko announced in the course of a recent investment and development forum.

‘In Russia, two factors are responsible for making a project appealing to investors. Firstly, what matters is to what extent the municipal or the regional authorities are aware of the need to create a good investment climate. Secondly, the demand within a particular market niche is important as well,’ he added.

‘Yekaterinburg is one of Russia’s leading cities in terms of investment appeal. The city can boast lively business development and developed industry. However, investment flows can hinder the small business development, and this problem is not unique to Yekaterinburg: it is typical of the entire country. Still, all the industrial giants need to be surrounded by small and medium enterprises; otherwise it won’t be interesting to invest in them any longer. This is what all Russian territories, including Moscow, are fighting for,’ Riabokobylko said.

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