Author: | Published: 1 Aug 2007
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Although a certain reluctance of foreign investors regarding Ukraine persists, this disinclination is far from being justifiable. Through recent legal and regulative reforms, government incentives, monetary stabilization and the first genuine steps towards financial and economic good governance, Ukraine is increasingly marketing itself as a keen investment destination whose increasing attractiveness is not hampered by turmoil in the political arena.

The banking and financial regulations in Ukraine remain stringent and have long been viewed as a limiting factor in the development of the banking sector, but recent reforms are breathing new life into the Ukrainian banking and financial markets, attracting growing numbers of foreign investors. Meanwhile, the legislative and regulative environment for capital markets and private equity operations is developing, and Ukraine is steadfastly growing into an attractive option for private equity investments by foreign investors. And although mergers and acquisitions are new in Ukraine, market needs and developments in this field have led to growth in the quantity of these deals and more acquisitions of majority stakes in Ukrainian companies by foreign investors.

Despite its risky character, real estate remains a strong foreign investment object, capitalizing on an extremely high return due to high real estate prices and market factors limiting the availabilty of real estate objects on the local market. The real estate market in Ukraine is indeed booming at a greater rate than ever.