MAIN REASONS TO INVEST IN UKRAINE
Briefing I Introduction I The Investor Ukraine 2021
“POLITICAL WILL IS FAVORING THE ACHIEVEMENT OF AMBITIOUS OBJECTIVES. IF THEY ARE REACHED, UKRAINE HAS EVERYTHING TO REGAIN ITS RIGHTFUL PLACE AS ONE OF THE WORLD'S LEADING ECONOMIES AND MOST IMPORTANT INVESTMENT DESTINATIONS.”
MAJOR INVESTMENTS IN INFRASTRUCTURE
Since President Zelensky's election, the infrastructure sector has become one of the Government's main priorities. These efforts are now part of one of the world's most significant infrastructure investment programs which has laid the country into the spotlight of foreign investors. The effects of this large-scale investment program -- named the "Big Construction Project" -- will have a multiplier effect on the country's economy which is expected to grow at higher rates than previous years. The project is foreseen to create 150,000 jobs in the country and contribute to GDP growth anticipated to increase by 5% in 2022.
Ukraine has a strategic position in Eastern Europe: lying on the northern shores of the Black Sea and the Sea of Azov, it borders several European countries - Poland, Slovakia and Hungary in the west, Belarus in the north, Moldova and Romania in the south-west and Russia in the east. Its strategic location can be a powerful catalyst for the development of the country as well as for the West. It makes the country an important trade and travel corridor between Europe, Asia and the Middle East. The country has been receiveing increasing interest from China as it can play a major role and become a major transit hub within the One Belt One Road initiative.
Despite the pandemic, lockdown and economic downturn, investment have increased in some sectors. In the IT industry in 2020, it has increased to US$571 million. And 2021 should become even more active for Ukraine in terms of attracting investment. To this end, the Ukrainian government has created the “National Investment Fund of Ukraine” which will contribute to the development of international economic cooperation and to further improving Ukraine’s competitiveness.
A PREDICTABLE AND STABLE EMERGING MARKET
More and more investors recognize that Ukraine has become a stable and predictable emerging market, and the availability of talented human capital and high-quality undervalued assets makes Ukraine an excellent investment destination. In 2020, the country climbed another seven steps in the World Bank’s Ease of Doing Business ranking and now ranks 64 out of 190 countries. At the same time, in terms of “ease of getting credit” Ukraine shares its position with the leaders of this rating – Singapore and Hong Kong, and in terms of “ease of dealing with construction permits” it is ahead of the United States. The World Bank rates Ukraine second among the countries of the world in the last 10 years regarding the speed and depth in the improvement of the business climate.
TALENTED HUMAN RESOURCES
With a population of over 40 million highly educated people, Ukraine is a large European country where 70% of them have secondary or higher education. As part of an effort of its educational system to promote technical and scientific disciplines, the country's workforce is renowned to be highly skilled and sought after. Today, the country is ready to enjoy growth in highly demanding industries such as the ICT sector, which has become one of the key drivers of Ukraine's economy. With over 130,000 engineering graduates annually, Ukraine is home to the largest IT engineering force in Central and Eastern Europe.