The renewable energy market in Ukraine .. Will the Arabs share a pie?

Safwan Gulak-Kiev

"Come to invest, I guarantee your business," said a candid appeal by Ukrainian President Volodymyr Zelinsky to foreign investors immediately after he took office in May, deliberately using English, although somewhat weak.

A call to reverse Ukrainian interest in attracting foreign investment in which the authorities find a lifeline for an economy that is spared from the consequences of successive political and military crises.

Because the field of renewable energy is new in Ukraine, it seems that countries and international companies mean more than other areas of investment. German, Dutch and British interests have already begun to build energy fields in western Ukraine, with an investment volume of about $ 100 million.

The Arabs' share
It is interesting that the eyes of the Arabs are looking forward to a share of the "renewable energy cake" in Ukraine, so to speak, and seeks to enter this area with interest and carefully together.

The capital Kiev last Tuesday saw an international conference on "effective ways to use and invest in renewable energy sources", organized by the "Ukrainian-Arab Association of Businessmen and Investors".

The Secretary-General of the Arab Renewable Energy Authority (ARIK) Engineer Mohammed Al-Taani said that the Arab countries are pioneers in the field of investment in renewable energy, noting that the volume of these investments amount to about five hundred million dollars in the Arab world alone.

"The Ukrainian market is promising," he said, especially in light of a government plan aimed at shifting to reliance on renewable energy by nearly 30% in 2030, in addition to prices and lower taxes, which is a factor tempting investors.

Volodymyr Stavnyuk, Chairman of the Board of Directors of Innovative Financial and Credit Institutions of the Ministry of Economic Development, Trade and Agriculture of Ukraine, talked about government financial instruments for business development and support.

He pointed out that the government of his country has allocated two hundred million dollars to support domestic and foreign investment projects related to the field of renewable energy, and it is ready to contribute to some of them by 70%, provided that the size of the contribution in the project per million dollars.

But Taani did not hide the existence of some obstacles, such as low electricity prices locally, in addition to some difficulties associated with bureaucracy, such as procedures for arrival and residence and others, and said, "You know that capital is cowardly, and preferably the ground is fertile and ideal ideal."

Fears's barrier
Difficulties, challenges, fears and others, terms that have long been present in the conversations of investors and businessmen, have been a broad title for the work of Ukrainian officials, especially in their fight against corruption.

Nevertheless, many believe that these terms have been transformed over time into a "false stereotype" does not reflect the reality, and this is what the new Ukrainian officials actively sought during the conference.

"In April, Ukraine adopted a new tender law, which allows investors to obtain long-term government facilities and guarantees. This has really encouraged many businessmen and international companies. I believe the main obstacles have been removed and the current obstacles resolved," said Oleksandr Pavlovsky, head of the Energy Investment Fund. A matter of time".

The head of the Ukrainian-Arab Businessmen and Investors Association, Mohamed Selim Al-Atti, said that many illusions and suspicions are floating around the subject of investment in Ukraine, and the fact of the matter is that it is very safe to invest in, and that it includes some minor problems associated with bureaucracy, otherwise it would not attract very careful European countries to security. And protect their projects.

`` We entered the renewable energy market in Ukraine with a capital of 800,000 dollars, '' said Walid Dolah, head of ADASCO Energy.``I can't say that we are in danger, yes, we have difficulties to complete the necessary transactions and contracts, but we have overcome them and started. ''

He added that the recent political changes (after 2014 and in 2019) reflected positively on investment and the necessary infrastructure.

It is noteworthy that the National Investment Office identified the number of foreign countries invested in Ukraine by 77 countries, including Arab and Islamic countries, such as Azerbaijan, Turkey, Saudi Arabia, Jordan and the UAE.