What first comes to mind for a Ukrainian when they hear the phrase “Arab world”? Sandy dunes, oil rigs, or the futuristic skyscrapers of Dubai? Such associations are natural, but they often overshadow another, equally important dimension—economic opportunities. In the modern world, Middle Eastern countries play a key role not only as energy exporters but also as significant investors. For Ukraine, which seeks to strengthen its economic position and attract strategic investments, developing multifaceted cooperation with the monarchies of the Persian Gulf opens new horizons—primarily in the agricultural sector, though not limited to it. How can this potential be fully utilized? Let’s explore.
Let’s talk facts—or rather, a bit of statistics. Let’s take a closer look at the largest monarchy on the Arabian Peninsula and a key player in the Arab world—the Kingdom of Saudi Arabia.
The Public Investment Fund of Saudi Arabia (PIF) is one of the largest sovereign wealth funds in the world, with an estimated total asset value of approximately $925 billion USD. According to the latest PIF reports from 2022 and 2023, the volume of international strategic investments grew by 6.4%—from $234 billion USD in 2022 to $249 billion USD in 2023. PIF has a broad investment geography, spanning markets from North America to Africa. Additionally, PIF is characterized by a relatively diversified investment portfolio, focused on developing specific sectors identified as strategic: the sports industry (Newcastle United Football Club, LIV Golf), transportation (Lucid Group, Uber), infrastructure (project programs in Brazil and France), real estate (Blackstone, AccorInvest), tourism (AMAN, Rocco Forte Hotels), and more.
Special attention should be given to why countries like France and Brazil have become major beneficiaries of PIF on a global scale. France serves as a hub for many international companies due to its robust financial infrastructure—not to mention its leading role in the EU, which provides additional opportunities for accessing the European market. Brazil, in turn, offers significant opportunities in the agricultural sector, energy (biofuels), and mineral resource extraction. PIF’s investments in Brazil, in particular, are often focused on acquiring agricultural land or implementing infrastructure projects—this aligns with Saudi Arabia’s strategy to diversify its economy (Vision 2030), or, simply put, its desire to move away from dependence on oil.
The aforementioned ambition is expressed not only through investments in high-tech and manufacturing but also in supporting foreign agricultural economies. In 2009, a subsidiary of Saudi Arabia’s Public Investment Fund was established—the Saudi Agricultural and Livestock Investment Company (SALIC). Its primary goal is to ensure the Kingdom’s food security, including through the acquisition of international enterprises engaged in the cultivation, processing, and transportation of grains and food products. SALIC’s priority markets include Ukraine, Canada, India, Australia, Brazil, and Singapore.
In 2013, SALIC UK (the British branch of SALIC) acquired the Ukrainian company “Agromark,” which was later renamed “Continental Farmers Group.” In 2019, this entity merged its assets with another leading company, “Mriya Agroholding.” Today, the conglomerate manages over 200,000 hectares of agricultural land in the Lviv, Ternopil, Khmelnytskyi, Chernivtsi, and Ivano-Frankivsk regions, operates storage facilities with an approximate capacity of 530,000 tons, and produces more than one million tons of grain annually.
Additionally, in March 2022, SALIC acquired a 35.43% stake in Olam Agri Holdings (a subsidiary of the Singapore-based trading company Olam Group), which includes one grain elevator in the Kyiv region with a storage capacity of up to 82,300 tons. In September 2024, SALIC purchased a 12.6% stake in the Ukrainian agro-industrial holding “MHP,” the largest producer and exporter of poultry meat in Ukraine and one of the top ten global leaders in the industry.
The Ukrainian market can offer Saudi Arabia far more investment opportunities beyond just the agricultural sector. In this context, three key areas of promising cooperation stand out: large-scale infrastructure projects (particularly the development and modernization of ports, as well as collaboration in maritime transport), the IT sector (including the development of artificial intelligence), and energy (renewable energy sources). Potentially attractive for Saudi companies could be privatization opportunities for assets such as the Odesa Port Plant, Sumykhimprom, the Chornomorsk Shipbuilding Yard, and the Mykolaiv Shipbuilding Yard.
Special attention should be given to potential logistical and infrastructural cooperation. In the short term, Ukraine should attract Saudi companies to acquire stakes in the ports of Greater Odesa and their modernization, emphasizing the enhancement of food security for the Kingdom. In the medium term, the benefits of such investments for Saudi Arabia would include easier access to European Union markets and the development of alternative logistical routes. Overall, investments in foreign infrastructure and logistics align with Saudi Arabia’s Vision 2030 strategy, aimed at diversifying revenue sources.
In the IT sector, Ukraine also has much to offer. Two months ago, Ahmad Al-Khowaiter, Executive Vice President of Technology and Innovation at Saudi Aramco, noted during a speech at the Saudi Media Forum that businesses in Saudi Arabia need to scale up in the field of artificial intelligence through partnerships. In response to this challenge, the Kingdom’s authorities, in collaboration with leading tech giants, are investing $14.9 billion in projects and companies related to AI and cloud computing. This opens a significant window of opportunity for Ukrainian IT companies. Some are already gradually integrating into the Saudi market. One of the first success stories is P2H INC, an American brand with Ukrainian roots, with offices in Kharkiv and Lviv. Over 18 years in the market, the company has evolved from front-end development to implementing large-scale digital transformation projects for government structures, particularly in e-governance. In early 2024, it opened an office in Saudi Arabia, further strengthening its presence in the country’s digitalization processes. Another example is the Ukrainian IT company Intellias, which already collaborates with private businesses in the Kingdom. However, it is crucial not only to strengthen existing connections of individual companies but also to act proactively—seizing the moment while it lasts. For instance, within the aforementioned wave of investments in the AI sector, potential beneficiaries could include players like the Ukrainian “unicorn” Grammarly (generative AI, natural language processing), Respeecher (voice cloning, deep learning—already collaborating with Disney and Hollywood), Zibra AI (AI for game development, 3D object generation, backed by investments from Andreessen Horowitz), and others.
In the energy sector, Saudi Arabia possesses both the necessary expertise and global connections. Notably, FAS Energy, established in 2013 as a subsidiary of the Saudi Fawaz Al Hokair Group, is actively investing in renewable energy in Ukraine. In May 2022, the company acquired a solar power plant in the Kyiv region with an expected capacity of 112 megawatts, marking its second major investment in Ukraine. During a working visit by Ukraine’s Minister of Economy Yulia Svyrydenko to Riyadh on February 17, 2024, FAS Energy representatives confirmed their interest in expanding their presence in Ukraine. This includes not only new solar and wind power plants but also the development of energy storage infrastructure. Meanwhile, another influential company, ACWA Power, views Ukraine as a potential new market. Known as a key player in electricity generation and water desalination, ACWA Power operates in 13 countries across the Middle East, Africa, and Asia, with a portfolio valued at over $85 billion USD. Currently, the Ukrainian company DTEK is actively negotiating with potential partners in Saudi Arabia, including the Public Investment Fund (PIF) and ACWA Power, to attract investments in renewable energy and other energy projects in Ukraine.
The oil and gas sector is not of interest to Saudi investors as an investment target. This industry in Ukraine is largely state-controlled, with most foreign investments coming from Western partners, international financial institutions, or neighboring countries like Poland or Azerbaijan. Meanwhile, Saudi Arabia, as a global leader in oil production with its powerful state-owned company Saudi Aramco, typically invests in markets where it can secure strategic control or significant influence. With Ukraine’s production of approximately 2 million tons of oil and 18–20 billion cubic meters of gas annually, it is not currently a priority for Saudi investors, especially considering that Saudi Arabia itself produces around 9–10 million barrels of oil per day.
In May 2025, Ukraine and Saudi Arabia will hold a joint business forum focused on agriculture, involving representatives from the business communities of both countries. This event is expected to foster the development of bilateral contacts, enhance investment cooperation, and boost trade relations. For Ukraine, this is an opportunity not only to showcase its capabilities but also to lay the foundation for new strategic partnerships in key economic sectors.
The mechanism for foreign investors entering the Ukrainian market follows a classic structure. The initial stage involves market analysis and determining the optimal entry strategy—direct investment, establishing a joint venture, acquiring assets, franchising, or other methods. The next step is the legal formalization of the business, which includes registering a company in Ukraine, opening a bank account, and obtaining necessary licenses. This is followed by establishing interactions with state authorities: registering as a taxpayer with the State Tax Service, signing lease agreements, hiring staff, and more.
It is worth considering the example of the previously mentioned investment fund SALIC. The company systematically implemented its strategy for investing in Ukraine’s agricultural sector. Initially, a thorough market analysis was conducted to assess cooperation prospects. Subsequently, stakes in Ukrainian agricultural companies were acquired, providing access to local assets, infrastructure, and land banks. In the following stages, SALIC completed the legal formalities, obtained all necessary permits, and began full-scale operations in the Ukrainian market.
However, the process is not as straightforward as it may seem at first glance. In particular, issues related to licensing and export regulation can present initial obstacles for potential investors. For example, extractive companies must obtain special permits, which can be a lengthy and costly process. In the agricultural sector, the Cabinet of Ministers of Ukraine recently introduced licensing and quotas for the export of certain agricultural products for 2025 (Resolution No. 1481 of December 24, 2024). This means that the export and import of specific types of agricultural products will only be possible with the appropriate licenses.
An additional negative factor for attracting investments in the agricultural sector is the frequent artificial barriers created by local authorities during the process of obtaining land plots, which de-facto amounts to extortion for corrupt gains. Moreover, connecting to utility networks can cost tens, if not hundreds, of thousands of dollars, with unique pricing set by regional energy companies (Oblenergo). In such cases, placing production facilities within existing industrial parks may be considered.
A separate risk factor for investors remains the ongoing war. It necessitates investment insurance, which adds financial costs. However, these risks can deter potential competitors, creating additional opportunities for companies willing to operate in conditions of high market volatility.
It must be acknowledged that with the growing influence of powerful agribusiness corporations, particularly foreign ones, a legitimate question arises about their real benefits to the local economy. While these companies generate tax revenues and create jobs, they simultaneously displace small and medium-sized farms, which cultivate between 10 and 5,000 hectares per enterprise. Agribusiness corporations also attract the attention of foreign donors. For example, in 2024, USAID allocated $140 million USD to support Ukraine’s agricultural sector, directing the majority of the funding toward modernizing the railcar fleets of large corporations such as Kernel and MHP.
At the same time, the opening of the land market in Ukraine has led to an increase in the value of agricultural land. As of November 2024, the average price per hectare was 50,475 UAH, reaching, ironically due to the war, 171,432 UAH in the Ivano-Frankivsk region and 107,964 UAH in the Kyiv region. This primarily benefits landowners, who receive significant income from the sale or lease of their land plots.
A significant factor remains that foreign investors, such as SALIC, continue to invest in Ukraine’s agricultural sector, particularly in crop storage infrastructure. It is important to emphasize that these financial injections are directed toward cooperation with existing agribusiness holdings rather than the direct purchase of land from small farmers. Moreover, SALIC, which has remained in Ukraine even during the war, pays substantial taxes without requiring state subsidies (unlike some domestic companies). In 2024 alone, the Saudi company contributed 1.6 billion UAH in taxes to budgets at various levels. The Saudi investor is already implementing projects to expand elevator complexes and, of course, has the potential for further investments.
Another critical factor for Ukraine’s economy is the commodity-driven nature of its agricultural sector and exports. To diversify exports, it would be prudent to invest in processing a portion of the produced goods, which would enable Ukraine to supply international markets not only with raw materials but also with finished products or semi-finished goods. The production and export of value-added products is a strategic priority for Ukraine. Companies from Saudi Arabia in the agricultural sector have the potential to invest significant funds in launching such processing facilities, and the state must engage with the Saudi private sector, ensuring favorable conditions for such long-term investments.
As previously mentioned, one of the key factors driving foreign investment is the low level of competition in the Ukrainian market, largely due to the ongoing war. This creates opportunities for companies willing to take risks for promising future positions. For example, the Danish company Carlsberg invested approximately 2 billion UAH in 2023–2024 to expand its presence in Ukraine. By capitalizing on low competition in the low-alcohol beverage segment, particularly beer, Carlsberg not only strengthened its position in the domestic market but also expanded exports to 18 countries. Additionally, the company actively uses Ukrainian raw materials, generating around 1.4 billion UAH annually for domestic farmers.
Other foreign players, such as Cement Roadstone Holding (CRH), see Ukraine as a promising market. The company is actively expanding its production capacity without waiting for the end of the active phase of the war. CRH acquired the Astor concrete plants, and the company’s president, Guillaume Cavallier, emphasized that these facilities will play a significant role in the country’s reconstruction, signaling CRH’s long-term plans in Ukraine. Thus, one of the world’s largest cement producers is strengthening its presence, betting on post-war recovery.
Another critical factor in attracting investment is Ukraine’s geographical location. Proximity to Western Europe, prospects for EU integration, and potential access to European economic mechanisms open new opportunities for businesses. Additionally, relatively low-cost labor and significant natural resources are important advantages for investors.
From a public policy perspective, a differentiated approach to attracting investors should be considered. For instance, creating a system of tax incentives tied to the timing of market entry could significantly increase international business interest. This could be structured as follows:
Such an approach would not only attract capital during a critical period but also make Ukraine truly competitive in the race for international investors, particularly from the Persian Gulf region. It’s worth noting that Arab monarchies already invest in unstable regions, such as North and East Africa. Thus, with effective diplomatic efforts and a creative approach, Ukraine could become a priority destination for their investments. The key is not to wait for capital to come on its own but to actively work on attracting investors using a comprehensive approach and negotiation mechanisms.
To ensure competitiveness and develop a healthy agribusiness sector, Ukraine must actively attract foreign investors wherever opportunities arise. Unlike several European countries, such as France, Germany, Poland, and Romania, Saudi Arabia is not a direct competitor in the grain market or agricultural product exports in general, creating additional opportunities for mutually beneficial cooperation. Further attraction of Saudi capital would reduce dependence on European ports, creating a more flexible logistics system for exports to the Middle East and North African markets, and enable the establishment of processing enterprises in Ukraine’s food industry, generating significant added value.
Smart foreign economic policy and effective negotiations can transform cooperation with Saudi Arabia and the Gulf monarchies into not just a source of investment but a powerful catalyst for Ukraine’s sustainable economic growth.
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