RIYADH: A Ukrainian official informed Al-Eqtisadiah that a potential investment package exceeding $1 billion between Saudi Arabia and his country will include a wide spectrum of projects in strategic sectors to enhance the economic partnership between the two sides.
According to the Chairman of the Ukrainian component of the Joint Council for Business Cooperation between Ukraine and the Kingdom, the portfolio of investment opportunities presented by his country focuses on five main sectors.
Yuriy Fedorovych Melnyk said these sectors are critical metals mining, agriculture and food production, as well as green energy, food security, and healthcare.
Melnyk, who also holds the position of Chief Sustainability Officer at MHP, one of Ukraine’s largest agricultural groups and the largest Ukrainian exporter to the Saudi market, said that there are plans to invest inside Saudi Arabia in parallel with these investments, “reflecting a two-way investment partnership, not just a commercial one.”
The first meeting of the Joint Business Council between the two countries in 10 years was held in Riyadh on Nov. 24, a step considered a practical resumption of a fundamental bilateral economic mechanism.
The Ukrainian official clarified that the two sides discussed specific projects for investments by Ukrainian companies in localizing the production of food and pharmaceutical products in Saudi Arabia.
MHP is already working on developing a partnership aimed at making Saudi Arabia self-sufficient in poultry production, according to Melnyk.
Biofuel within agricultural investment targets
In the agriculture sector, cooperation is expected through projects of Epicentr K company, which is developing a massive industrial farm in western Ukraine spanning 150 hectares.
The farm includes plants for oil extraction, bioethanol, and biomethane, in addition to a combined heat and power plant relying on agricultural waste, with a total budget of $500 million.
Melnyk indicated efforts to attract additional financing worth $350 million.
The potential investments in the biofuel and green energy sectors also include cooperation through projects of MHP company, including a plant for processing rapeseed and soybeans with a capacity of 208,000 tonnes annually.
The total budget for these projects reaches $31.7 million, with required financing of $25 million.
Additional potential investments include a biofuel power plant project to produce 75,000 MWh of electricity annually, and investment opportunities in the biomethane sector with a capacity of up to 1,060 GWh of biomethane equivalent extracted from manure.
Potential cooperation in the food security and dairy sectors will include the establishment of a large dairy farm to ensure stable milk supplies for the Ukrainian market.
In the healthcare sector, the Ukrainian group Dobrobut is presenting an investment opportunity to build a new hospital in Ivano-Frankivsk with an area of 7,200 sq. meters, containing more than 60 rooms.
In addition to this, a new rehabilitation center with 73 rooms will offer outpatient care and rehabilitation services for stroke patients, spinal cord and limb injuries, post-surgical recovery, pediatric rehabilitation, and other health programs.
The required investment for the two projects is $24.2 million, with expected annual operational revenue of about $9.8 million, according to Melnyk.
Potential investments in critical metals sector
Investments in the critical metals mining sector will be through the Ukrainian company BGV, which owns assets including graphite, beryllium, and uranium.
Over the past eight years, BGV has invested more than $100 million in consolidating mining licenses, conducting feasibility studies, and developing infrastructure.
The total investment capacity for developing the mines, concentration plants, and surrounding infrastructure exceeds $600 million, according to Melnyk.
The meeting was attended by representatives from more than 40 Saudi companies, alongside the Chairman of the Federation of Saudi Chambers of Commerce and Industry Hassan Al-Huwaizi and a number of deputy ministers of economy and investment.
In return, the Ukrainian delegation included representatives from companies operating in multiple sectors including agriculture, medicine, and biomaterials. These companies employ more than 180,000 people and contribute more than 4 percent to Ukraine’s gross domestic product.
While Melnyk stated that the resumption of the Council’s meetings after 10 years highlights “new dynamics” in the economic relations between the two sides, both sides considered the meeting an important step toward building a new strategic partnership.
This comes based on long-term investment, developing trade and technological cooperation, and implementing projects to enhance the economies of both countries.
The Ukrainian delegation also affirmed its readiness to continue working, hold regular meetings, and develop joint initiatives in the priority sectors.
