St Petersburg International Economic Forum

Russia's middle class could mean 'double-digit' returns


Russia's healthcare, infrastructure and natural resources have the potential to generate 'double-digit' returns, Dubai-based private equity firm the Abraaj Group believes.

Partner of the group, Mustafa Abdel-Wadood, told CNBC the country's growing middle class will make way for an "entrepreneurial environment" that will enable businesses to grow.

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Andrey Rudakov | Bloomberg via Getty Images

Speaking at the St. Petersburg economic forum, Abdel-Wadood said Russia was not a market he was currently in, but he was on the hunt for opportunities.

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"I speak from the experience we have seen with the (emerging) markets we have invested in, the reality is there are businesses in these markets emerging around food businesses, healthcare, logistics growing by 20- 30 percent EBITDA (earnings before interest, tax, depreciation and amortisation)," said Abdel-Wadood.

"You talk about risk premium, it is largely mitigated, whether it is currency or other risk it is largely mitigated by growth," he added.