KIEF (Kyiv international forum) is an annual international forum that takes place in the format of a discussion platform, it is aimed at forming a strategy for the economic development of Ukraine. KIEF promoting Ukraine's integration into the world economy, forms a deep understanding of Ukraine in the international community as a promising global player and helps Ukrainian businesses to attract foreign investment and enter the foreign markets.
This year, the KIEF assessed the recent investment climate in Ukraine. The speakers of the forum consider IT, energy, agriculture, banking and fintech as the most attractive sectors of the Ukrainian economy.
Most of you heard about the developed agricultural and IT sector, but only a few people know that Ukraine has one of the largest returns on capital in the banking sector in Europe — over 30%. The potential of the financial sector is very large, because of the low credit penetration level — debt-to-GDP. Therefore, there is a large space for quick and easy growth.
Recent legislative changes rapidly, most notably the Law On Payment Services (aimed at modernizing and further developing the payment services market). It provides more opportunities for banks and financial companies to develop and innovate themselves.
The investment attractiveness index of Ukraine has grown significantly over the past six months. In the list of positive trends, CEOs included:
- The stabilization of the situation with the coronavirus;
- A stable exchange rate, a low discount rate;
- Digitalization of public services, the launch of a land market;
- The beginning of a change in the social contract with oligarchs;
- Government’s support for large investment projects.
Investment forecasts for the next six months are quite optimistic. The low competition and synchronization of legislation with the EU contribute to a return on investment, which is a significant advantage for Ukraine.
The CEO of the investment company Dragon Capital notes that about 80% of Dragon Capital's investments are associated with Ukraine. According to him, the return on investment in Ukraine is 20%, even during crisis periods. However, to achieve such a high indicator, diversification of assets is important. It is very important to invest in those sectors of the economy that are understandable for the investor himself.