The first and the only Ukraine Trade Center in the Gulf area was registered by Dubai Department of Economic Development on May 30, 2005, upon solicitation of Mr. Mutaiwee, Director General of Dubai Chamber of Commerce and Industry and after the approval by the Court of His Highness, the Ruler of Dubai. The Trade Center has the status of a non-profit organization. Ukraine Trade Center is a legally independent and separate entity with the right of conducting economic activities. The Trade Center is directly managed by the Director General - during the registration of the organization, his name is entered into the license text.

The Trade Center has the right to rent office premises pursuant to the UAE’s existing legislation. Given the availability of the office premises, UTC has the right to provide 15 employment visas (residence visas) for its employees, pursuant to the staff members list approved by the Labor Ministry.

In the opinion of Mr. Sergey Pachkovsky, Director General of Ukraine Trade Center, the Trade Center is instrumental in developing trade relations between Ukraine, the UAE and other Gulf countries, easing access to the local markets for Ukrainian goods, industrial enterprises and commercial companies as well as in attracting investments into Ukrainian economy.

Mr. Pachkovsky says: “We have performed a thorough market study and found that trade potential between Ukraine and Gulf countries s very high, therefore we have chosen Dubai as our base for development and strengthening of trade relations”. The Trade Center is representing the interests of Ukrainian Chamber of Commerce and Industry and its 27 regional branches.

At present, the management of the Trade Center is planning to organize a permanent exhibition of Ukrainian goods. Ukraine has a significant intellectual and industrial potential and is rich in mineral resources and raw materials and it should become an important trade partner for the Gulf countries. “We invite all persons interested in development of trade relations between Ukraine and Arabian countries for a cooperation”, says Sergey Pachkovsky.

The Director General emphasizes that it is necessary to take into account the specifics of Ukrainian mentality. In his opinion, language barriers and lack of information back at the Soviet time became the reasons of developing a passive and inert business style; however, this situation is changing gradually. Now the time has come for businessmen in Ukraine and the United Arab Emirates to strengthen and develop the bilateral relations.

Mr. Pachkovsky noted that Ukraine’s share in trade with the UAE is quite insignificant. This rather sad fact means at the same time that there is a huge potential for improvement.

The services provided by Ukraine Trade Center to businessmen from Ukraine, CIS and Gulf countries help strengthen trade links between the countries. In December 2005, with assistance of UTC, the Investment and Privatization Assistance Fund (IPAF) has signed with Jebel Ali Free Zone an agreement on representation of its interests in Ukraine. Now any Ukrainian company can receive full information from IPAF concerning the registration of this company or its branch in Jebel Ali Free Zone. If such company will be able to ensure a skillful marketing, such representation in Jebel Ali will practically guarantee this company good sales not only in the UAE but also in all Gulf countries and even in South-East Asia.

Step-by-step movement to the Gulf Region Market

In order to facilitate the analysis and access to the market for Ukrainian businessmen, Ukraine Trade Center developed a step-by-step scheme of setting up a business and its further functioning:

1. Visit of managers;
2. Market survey and analysis;
3. Cost efficiency and economic advisability study;
4. Permanent exhibition of Ukrainian goods;
5. Participation in international exhibitions;
6. Organization of business meetings;
7. Lease of warehouses and premises;
8. Marketing;
9. Feedback.

Functions of Ukraine Trade Center:

- Recommendations and practical advices on business development in Ukraine and CIS countries; recommendations on investments into the most profitable projects, provision of information to Arabian companies on investment projects in Ukraine;
- Registration of different types of companies in Ukraine and the UAE;
- Assistance in organization of meetings with representatives of government of Ukraine and the UAE and in establishing direct contacts between Ukrainian companies and local partners;
- Consulting on legal issues of business administration, on tax, labor, customs and foreign currency legislation of Ukraine and the UAE;
- Organization of workshops and conferences for government organizations and commercial companies from Ukraine and the UAE;
- Assistance in establishing cooperation with the Chamber of Commerce and Industry of Dubai and the UAE. Access to the broad array of services offered by CCI;
- Elaboration of marketing studies and recommendations for strategy and tactics of entering new markets;
- Assistance to companies and organizations in search for business partners in Ukraine and Gulf countries;
- Establishment of representative offices of enterprises and companies in the UAE for direct cooperation with partners from the Gulf countries;
- Information and organizational support for Emirates’ companies wishing to establish mutually beneficial relations with Ukrainian partners;
- Advertisement of goods and services;
- Provision of security measures for businesses and businessmen when traveling in a foreign country; 
- Assistance in obtaining entry visas, arrangement of office and housing lease, hiring of manpower;
- Preparation of information reviews and confirmation of authenticity of different information and documents upon requests of government and commercial structures of the UAE and Ukraine.

Situation on Ukraine’s Market

Latest data received as a result of Ukraine’s market study reflected significant economic growth acceleration that results in a continuous increase of borrowed capital; this tendency is likely to continue in the future according to most forecasts. Besides, the new country’s leadership demonstrated its firm intention to accelerate structural reforms and focus on measures aimed at stimulating investment activities.

Given the new opportunities for improvement of investment climate in Ukraine, it is very important to have a clear idea about the obstacles which investors have to count with and about the most efficient ways of reducing the influence of such obstacles as soon as possible. UTC has such knowledge. 

The creation of a positive investment climate is probably one of the most important goals that Ukraine is facing today. It is necessary to use the opportunities emerged due to the favorable domestic conditions and improved macroeconomic situation. Ukraine needs significant investments to replace the obsolete fixed assets and support economic growth – significant part of the capital could be formed on the account of foreign investments.

Ukraine Trade Center is a platform providing a meeting place for companies from Ukraine and Gulf region and allowing opportunities to build mutually beneficial relations. T

he creation of a Ukraine-UAE Business Council has been an important factor giving an impetus to the development of trade and economic relations between both countries; it resulted in the activation of investment and trade partnership, conduct of trade, industrial and specialized exhibitions, exchange of information, ideas, programs and information on benefits granted to foreign businesspeople in both countries.

The establishment of the Council reflects the desire of the Ukrainian party to manage the process of development of Ukraine – UAE relations “from above” having in view their great potential. At the same time, some countries interested in developing business cooperation with the UAE, manage this process “from below” and set up business councils based on their national companies working in the UAE. It seems that such experience is worth studying because it involves the businesses already working in the UAE, helps to establish contacts and exchange information between them, look for joint solution of problems, discuss and find new directions for the activities in the UAE.

There is no doubt that Ukraine – UAE relations have a great potential. The Emirates’ businesspeople display certain interest for investments into Ukraine. This was also witnessed during the recent Ukraine – UAE business forum held in Dubai. The next round of negotiations between the representatives of business and government communities of both countries will be organized by UTC in Ukraine on September 17-19, 2006. The UAE delegation will visit two regions in Ukraine (Kiev and the Crimea) to study the business environment.

It is expected that after this visit, Ukraine – UAE trade and economic relations will gain new momentum and the commodity turnover between two countries will increase significantly.

This material was prepared by the Department of Advertising and Public Relations, Ukraine Trade Center in the Gulf region