This study aims to examine how the institutional framework between the Russian Federation and the Kingdom of Saudi Arabia, combined with the use of Islamic finance instruments, can reduce trsansaction costs, expand access to capital, and strengthen the resilience of bilateral trade and investment relations, with particular emphasis on the agri-food sector and related industries.
The study is based on an institutional and sectoral analysis that reconstructs the chronology of bilateral decisions and agreements in the field of investment. It compares regulatory changes in Russia and Saudi Arabia, including the pilot regime of partnership financing and halal certification practices. Trade statistics and the product structure of bilateral supplies are summarized using data from international trade sources. In addition, the research examines case studies and initiatives for the implementation of Sharia-compliant instruments, including the digital mudarabah sukuk and partnership bond projects.
First, Russia–Saudi interaction has moved beyond declarations to institutionalization: an intergovernmental commission, a permanent trade mission, mutual recognition of halal certification and veterinary–sanitary accords that opened the meat segment and deepened the trade profile. Second, financial and logistics frictions can be targeted via Islamic finance tools: settlements in national currencies through a Saudi clearing intermediary, ijara leasing of transport capacity, and Sharia-compliant export-risk coverage. Third, agri-industry remains the primary driver of bilateral exchange; Russia’s unrealized export potential to Saudi Arabia exceeds US$1bn, signaling a strategic reserve for further growth.
This study proposes an applied financial and logistical configuration that integrates partnership financing, sukuk and takaful with the sectoral specialization of bilateral trade. Its originality lies in linking Islamic finance instruments to specific challenges in Russian–Saudi trade relations, while also considering how these instruments can be legally and operationally embedded within the existing framework of intergovernmental and sectoral agreements.
