Industrial parks development shall facilitate attracting investments to Ukraine

Industrial parks development shall facilitate attracting investments to Ukraine
9 April 2021, 15:33

Ukraine has the potential to become a regional leader and a 'magnet' for investments. World experience shows that this can be achieved by creating attractive and competitive conditions for industrial parks with high level management companies.

This was said by the managing partner of Robinson Patman Law Firm Dmytro Vidsota at the forum 'Municipal infrastructure: urban development and comfort', on April 8th in Kharkiv.

More than 40 industrial parks are registered in Ukraine, however most of them exist on paper only. Over the past year, the country has seen positive changes in attracting foreign capital (e.g., the adoption of the Law on 'investment nannies' and related changes to the customs and tax codes), but this is only a first step.

'For industrial parks in Ukraine to start working, it is important to study successful international experience and implement what can be useful and acceptable in Ukraine. Successful parks attract a significant number of investors, including foreign ones, they show high occupancy rates, good financial results of their activities and socio-economic impact. Now in some countries, industrial parks generate up to 30% of GDP,' Dmytro Vidsota said.

For example, Ukraine can learn a lot from the UAE experience. Jebel Ali Free Zone in Dubai is a classic example of the positive impact of industrial parks on the country's economy. It was with the idea of creating this industrial park that the development of the UAE began as one of the world's most important port and logistics hubs.

For the industrial parks successful development in Ukraine, it is necessary to solve a number of problems. The first is to create effective tax and customs incentives (in addition to those stipulated by the Law 'On Investment Nannies') in combination with a well-developed infrastructure. The second is to eliminate difficulties at the initial stage of an industrial park.

'In practice, the process of registering a land plot and connecting to power grids can take years. The burden of financing these processes falls on the investor, so the industrial park project often remains on paper. Ad minims for the state is to simplify the licensing procedures for obtaining a land plot and construction, to revise the conditions for connecting to electric and other networks for industrial parks,' Dmytro Vidsota said.

The prospects for the growth of industrial parks in Ukraine are colossal. Our country can become attractive to investors due to its geographic location, natural and labor resources and investment potential. Taking into account the fact that many developed countries (such as the UAE) are already 'oversaturated' with investments, Ukraine, with proper state policy, can become an attractive investment platform.

Maintenance of industrial park projects is one of the priority areas of Robinson Patman's work. The company takes part in the development of draft laws concerning the creation of incentives for the industrial parks development in Ukraine. Robinson Patman specializes in such practices as international trade, antitrust and competition law, government relations.


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