Many people are already thinking about the future of business in Ukraine after the war. There is no doubt that the state will throw all its forces into the recovery of the economy as soon as possible, but this process, according to the most optimistic estimates, may last five to ten years. For those who are not ready to wait so long, experts advise them to take a closer look at investing in other European countries. This is a good opportunity for investors who are willing to take risks to achieve financial gain.
Despite the fact that such investment may be associated with certain risks - for example, economic instability, political crises or cultural differences, it has many advantages. The benefits are clear, ranging from access to new emerging markets and tax incentives that many countries offer to attract foreign investment into their economies.
International expert club and rating agency "ElitExpert" presents the rating "TOP-5 European countries, the most attractive for investment", based on the data of the State Statistics Service and the assessment of independent experts of the MEK.
HOW WE CALCULATED
When determining the countries, the experts were guided by five criteria necessary when choosing a country for investment:
- Economic stability. Countries with a stable economy, low inflation and a stable exchange rate are the most attractive for investors.
- Political stability. As in the first case, investors prefer countries with stable governments, where laws and regulations do not change too often, and the risk of revolutions and coups is almost zero.
- The size and growth of the economy. Naturally, countries with large, growing economies offer more opportunities for investors than small countries with less growth potential.
- Infrastructure. The importance of this criterion cannot be underestimated. Countries with developed infrastructure, including roads, ports, airports, and telecommunications networks, are always attractive to investors because it makes doing business easier and lowers costs.
- Fight against corruption. Countries that successfully fight corruption almost always have a transparent business environment, which contributes to the creation of a favorable investment climate. Conversely, countries with a high corruption risk sharply reduce the number of people willing to invest in their economy.
TOP-5 EUROPEAN COUNTRIES, MOST ATTRACTIVE FOR INVESTMENT
According to experts, this country is currently the most attractive place for investment.
Due to its geographic location in two parts of the world, Turkey serves as a link between Europe and Asia, offering access to both western and eastern markets.
The main areas of investment in Turkey are real estate and tourism. Thanks to its cultural heritage and rich natural landscapes, Turkey remains one of the most popular tourist destinations. Investors are interested in building new hotels and resorts, as well as improving infrastructure for tourists.
According to the results of 2021, the number of real estate purchases by citizens of Ukraine in Turkey increased one and a half times over the past five years. At the same time, the structure of demand has also changed: if earlier the majority of transactions were commercial real estate, then starting in 2019, the emphasis shifted to resort real estate. Thousands of Ukrainians bought villas and apartments in Turkey not only for living, but also as a profitable investment.
Another promising industry in Turkey is the production and export of textiles and clothing. Large reserves of raw materials and cheap labor force by European standards created all the conditions for the successful development of this industry. Many investors are currently investing in the creation of new production facilities, technology improvements, and product quality improvements.
The energy sector also attracts the attention of investors from Ukraine. Recently, Turkey seeks to reduce its dependence on energy imports and gradually switch to the use of renewable energy sources. Investors are investing in the construction of new solar, wind and hydropower plants, as well as in the development of electricity supply networks and electric vehicles.
At the same time, Turkey offers tax benefits and a simplified procedure for establishing a business, which makes this country even more attractive for investors.
The second place in the TOP-5 most promising countries for investment was awarded by legal experts to Germany.
This country is the largest economy in Europe and offers a wide range of investment opportunities, ranging from modern technology to health care. At the same time, Germany has a stable political regime and the most favorable legislation for investors.
Since Germany is one of the largest car manufacturers in the world, large Ukrainian investors are actively investing in this area. Mechanical engineering is also one of the key branches of the German economy — the country produces a wide range of industrial equipment, from machine tools to robotic production systems. Investors value this industry for its technological advancement and innovative potential.
The pharmaceutical sector is also considered one of the most attractive for investors - this is due to the high level of scientific research, innovative technologies and strong patent legislation. Especially since many large pharmaceutical companies are based in Germany, which makes it one of the leaders in this field on a global scale. This became especially evident during the COVID-19 pandemic, as it was the Pfizer / BioNTech vaccine developed in Germany that became the most widely used anti-covid vaccine in the world.
The third line of the rating was taken by Cyprus.
In addition to the tourism industry, investors from Ukraine are attracted by the country's financial sector, which is known for its reliability and stability. Cyprus is a tax haven for many companies, especially since the Cypriot income tax is the lowest among all European countries, at 12.5%. Cyprus' banking sector is also stable, making it attractive for investment.
It should be noted that a significant part of the investments of Ukrainians goes specifically to the Cypriot program of granting PMP and citizenship. Cyprus is one of the few countries in the European Union where you can get a passport for investments in the economy and real estate. Having invested your money in commercial or residential real estate, in any operating business, you can immediately issue a PMP, and after some time issue a Cyprus passport and become a full-fledged EU citizen.
After all, the maritime sector of Cyprus is also attractive to investors, as the island is located at the crossroads of maritime trade routes between Europe, Africa and Asia. Therefore, Cyprus now offers many opportunities for investors in the field of maritime logistics, maritime transport, shipping, as well as fish production and processing.
The fourth place in the rating is in Finland.
This Scandinavian country has one of the most dynamic economies in Europe and is known for its high-tech industry: information technology, telecommunications and innovative programs. Thanks to the presence of talented programmers, active government support for start-ups and a developed infrastructure of IT technologies, many Finnish companies, such as Supercell and Nokia, managed to achieve worldwide recognition. In the field of information technology, Finland is considered to be one of the biggest players in Europe, and it is in this sector that investors invest the most money.
The second most important branch is energy, especially the development of renewable energy sources. Foreign investors are actively investing in Finnish wind and hydropower.
And finally, we can mention the forest industry, which is also one of the key industries in Finland. Investors invest in logging companies, wood pellet production and other related projects.
Overall, Finland offers investors a very high standard of living, stability, security and easy access to financial markets.
Rounding out the top five foreign countries for investment is our western neighbor – Poland.
This country has great potential for investors due to its location in the center of Europe, favorable business climate and strong economy. Poland has many skilled workers, low production costs and cheap labor. In addition, Poland actively attracts investments in innovative projects, especially in the field of information technology and biotechnology, and the similarity of the Ukrainian and Polish languages is an additional plus for quick introduction to the Polish market.
An important industry that attracts investors to Poland is manufacturing. The country has a well-developed industry, which includes the production of machinery, equipment, electronics and other goods. Due to its geographical location, Poland is also a popular location for warehouses and logistics centers.
Finally, one cannot fail to mention the field of agriculture, which, as in Ukraine, is one of the most important branches of the country. Thanks to the rich land and climate, agricultural enterprises and companies engaged in the production of agricultural machinery and equipment, which have already become cramped in our country, have great opportunities for growth on the Polish market.
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