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Arab investors interested in Ukrainian land

September 2, 2009

Arab investors are keen to buy up Ukrainian land. Indeed, some independent experts warn that foreign investors have become too active on Ukraine’s land market.

The global economic crisis has pushed many investors to put their resources into the agricultural sector in order to ensure their populations with foodstuffs. In particular, the Israeli and Polish press, quoting management at the British-Ukrainian company Landcom, say that lately Arab magnates have been showing up with serious cash to invest in Ukraine’s land market, according to Deutsche Welle.

Most often, businessmen from Libya, Turkey and Saudi Arabia have shown interest in acquiring or leasing land. In this way, say Landcom officials, a promising triangle is emerging: fertile Ukrainian soil, European technology and foreign cash.

Still, not everyone in Ukraine is thrilled by such a proposition. Valeriy Hayets, director of the Institute for Economics and Forecasting under the Ukrainian Academy of Science, says he has personally talked to Arab investors regarding the production of food on leased Ukrainian farmland. Yet, this expert warns that foreign investors in Ukraine’s farm sector have largely been operating in the red.

Tags: land market