Brief description of the region
The Republic of Dagestan is the unique region in its climatic conditions, it has great economic and scientific potential, original culture and historical traditions and it has a strategically important position for the Russian Federation. Natural resources, developed transport and industrial infrastructure, favorable investment legislation, and the multinational hardworking people of Dagestan make the Republic an investment attractive region in southern Russia. Every year an increasing number of international and Russian business structures are launched in Dagestan . A great number of large investment projects with the participation of domestic and foreign companies are currently implemented in republic in such sectors as the production of building materials, hydropower, transport infrastructure, tourism and agriculture. The implementation of the projects is a result of the investment policy pursued in the region.
The Republic of Dagestan is situated between Europe and Asia in the eastern part of the Caucasus, it is the southernmost region of Russia. It is bordered by land and by the Caspian Sea with Azerbaijan, Georgia, Kazakhstan, Turkmenistan and Iran, within the Russian Federation it has borders with The Republic of Kalmykia, Stavropol region and the Chechen Republic. The total length of the territory from north to south is about 400 km, with a territory of 50,3 thousand square kilometers and the coastline extension comes to 530 km. The climate is generally temperate continental and dry.
Republic is considered to be a region of water supply. The largest rivers are the Terek, the Sulak and the Samur. The rivers are widely used in the republic for hydroelectric power, amelioration and water supply.
The potential for the development of tourism is defined by warm Caspian Sea and its sandy coasts, air free from industry pollution, by the great variety of beautiful landscapes, natural monuments, objects of historical and cultural heritage, the presence of mineral springs (carbon dioxide, hydrogen sulfide, ferrous, radon etc.), as well as the unique original culture and art of the people of Dagestan. In the riverside there are a lot of lakes rich for medicinal mud. Foremost, there are sulphide mud lakes such as Makhachkala`s lake, Big and Small Tourali lake, Tipsus, Adzhi and others.
Most industrial importance in the territory of the republic have deposits of non-metallic raw materials (limestone, quartz sand, gravel, clay, gypsum, dolomite, marl, etc.), oil and gas, including at the Caspian Sea shelf. The fields of non-ferrous metals are revealed in Dagestan, the largest of which is copper pyrite field (with complex ores) named “Kizil-Dere”. It is the second field of largest reserves of unexploited in Russia. Ores, in addition to copper, have a plurality of related elements, zinc, nickel, cobalt, cadmium, silver, gold, indium, bismuth, tellurium, beryllium, etc.
The Republic’s economy
The economy of the Republic of Dagestan is very widely diversified. It includes agro-industrial complex, developed branch of production of building materials and trading. The main contribution to the formation of the GRP and the total tax revenues of the republic is made by agriculture, constructing, industrial production, transport, communications and trading.
Favorable demographic situation, which is expressed in the sustainable growth of the working age population, provides the basis for economic growth in the development of production, and in the formation of the domestic demand for products and services.
The main objects of Dagestan`s transport infrastructure are the International Sea Trade Port of Makhachkala, the International Airport, railways, highways and pipelines of international importance. The International Sea Trade Port of Makhachkala is the unique ice-free port in Russia, it provides a year-round cargo-flow by transport corridor The North-South and The East-West. Dagestan has a well developed road network with a total length of more than 8 thousands kilometers. There are several highways in the region such as «Kavkaz», «Rostov-on-Don – Baku», «Astrakhan – Makhachkala» and others. The railway network with the length of 878 km provides transportation of passengers and goods along the lines «Moscow-Baku» and «Kiev-Baku». The railway line Kizliar-Karlanyurt is duplicating the highway linking Dagestan with the center of the Russian Federation and it optimizes logistics and the turnaround time of goods between the European Union, the Russian Federation and Asian countries.
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