Ukraine prepares ground for greater UAE investment

Kiev: Keen on exploring business opportunities with the United Arab Emirates, the Ukranian Chamber of Commerce and Industry is planning to form a Ukrainian Emirates Business Council this year.

At current trade levels of $440 million (Dh1.6 billion), the eastern European country is working towards increasing volumes by offering lucrative opportunities for investors from the Middle East, while, at the same time, a large number of them are establishing their offices in free zones in the emirates.

“We are hoping the business council will be established within the first half of this year in Dubai or Abu Dhabi,” Gennadiy Chyzhykov, President of Ukrainian Chamber of Commerce and Industry, said at a meeting of the chamber representatives with the media held in Kiev on Monday. “It will facilitate trade and economic relations between Ukraine and the UAE by providing information about investment avenues, guidance about procedures to set business and helping potential trade partners meet.”

He said the governments of the two countries have already signed necessary trade agreements for trade on economic and trade cooperation, on avoidance of double taxation and protection of investments in an effort to enhance trade volumes.

Offering a 100 per cent ownership to foreign investors in most areas, Ukraine is looking at major foreign investment in aviation, space industry and property projects.

Primarily an agricultural economy, it requires an estimated $70 billion toward modernising its agricultural sector with the aim of increasing its share of world exports.

Earlier this year, the country adopted a programme for development of its car industry till 2020, under which it plans to multiply production of vehicles to 735,000 annually. “This would also need construction of new production facilities,” Chyzhykov said.

Among the items it offers to the UAE are a diverse range of raw materials such as metals for agricultural goods and high-tech items like planes, plane engines, turbines, ships and cars.

Considered the ‘bread basket’ of Europe and the largest producer of sunflower oil in the world, Ukraine is also looking at supplying corn, poultry, milk and eggs to the UAE.

“As of now, we have representative offices of more than 20 companies in Ras Al Khaimah free zone and more businesses want to set base in the UAE,” said Dmytro Rakhmatullin, who represents the chamber in the UAE.

— The writer is a staff reporter with XPRESS, a sister publication of Gulf News.