Islam in Ukraine - business

“Go East!”: the Ukrainian Business is seaking New Markets and Investments in Islamic Countries

Islam in Ukraine — Tue, 12 Apr 2016 14:00:41 +0000

In recent years, Ukrainian manufacturers are more likely to enter the Muslim countries' markets, and these, in turn, are considering the possibility of investing in the Ukrainian economy. This recovery gathered further interest of the state as well as of the private initiatives that have begun actively working in this direction.

The Conference Capturing New Markets, which took place on March 29, at Hilton Kyiv, became one of the large-scale themed events. At the invitation of the organizers, edition Kyiv Post, the event was attended by two structural units AUASO “Alraid” — “Alraid” Halal Certification and Research Center, the organization that has helped many Ukrainian producers to enter the markets of Muslim countries, and restaurant Family House, the host partner, handled by Kyiv Islamic Cultural Centre.

The event brought together two hundred participants: business leaders, government officials, diplomats, experts and scholars from Ukraine, Turkey, the EU, the Middle East and North Africa.

The deputy Minister of Agrarian Policy and Food of Ukraine on European Integration, Valeriya Rutytska introduced “Alraid” Halal Certification and Research Center as the old-standing and reliable partner of the Ukrainian business, which not only inspects production for compliance with Shariah issues, makes the recommendations, in order to bring the production process in compliance with these standards, and certifies the product, that has the full right be labeled with “halal”, but also helps manufacturers to enter the markets of the Muslim countries.

Due to its high standards, the cooperation with RAMU “Umma” and the disinterestedness, “Alraid” Halal Certification and Research Center has the good reputation in the Gulf countries, and its issued certificates gained the confidence in the region. Even the strictest official commissions, visited Ukraine to verify the actual production conditions and the compliance with issued certificates, never found any violations or deviations.

According to deputy director of the Centre, Larysa Polishchuk, she and her colleagues could not miss the opportunity " to be kept abreast", because, in addition to the certification of Ukrainian producers, they advise their clients on the sales of hahal products in the foreign markets, that’s why it is necessary to possess the most current information.

The restaurant Family House, in turn, has successfully coped with the creation of the unique atmosphere of the East — just between the workshops on Turkey and the Arab countries: the coffee ceremony with coffee pots, oriental sweets, dried fruit and tea were attracting the participants with its flavors to the buffet table. The guests had the opportunity not only refresh themselves, but also get acquainted with the small exposure of the utensils for preparing and serving coffee. And the master of calligraphy, Jamaladdin, willingly wrote with ink to everyone their names, slogans, and particular wishes on the special cards — as a small souvenir.

12/04/2016

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Ukraine Threatens Sanctions on Israelis Doing Business in Crimea

editor — Tue, 26 Jan 2016 14:52:16 +0000

Israeli companies doing business in Crimea may be subject to sanctions, the Ukrainian Embassy in Tel Aviv threatened last week.

According to the Ukrainians, Israeli citizens have been traveling to the Black Sea peninsula, which was annexed by Russia in 2014, without permission from Kiev, and Israelis firms have been engaged in “business activity in cooperation with the illegal authorities of Crimea without a permit.”

Such activities, the embassy asserted in a statement, are a violation of both Ukrainian and international law, and should they continue, “relevant information will be transmitted to the competent authorities of Ukraine to further bring to justice perpetrators of violations of the current legislation.”

Companies that continue operating in Crimea without coordinating with Kiev may be subject to “special restrictive measures,” such as sanctions.

Speaking with The Jerusalem Post on Monday, embassy press secretary Olena Ivanchuk stated that last November-December Kiev became aware of a visit to Crimea by a group of Israeli companies in the fields of agriculture and agro-technologies as well as “cooperation between the illegal occupying authorities of Crimea and the Israeli company Telecom and Technology Transfer Ltd.”

While the Foreign Ministry in Jerusalem declined to comment, representatives of Jewish bodies in both mainland Ukraine and Crimea issued strong and conflicting statements on the matter.

In an email to the Post, Eduard Dolinsky of the Kiev-based Ukrainian Jewish Committee stated that he fully agreed with the ultimatum, explaining that “we warned Israelis even at the very beginning of Crimea annexation that it would be a big mistake to visit or work with them without Ukrainian approval.

“I think that the Israeli government should issue a similar warning for Israeli citizens and companies,” he added.

In a joint statement Monday evening, several Jewish organizations in Crimea, including the Crimean Jewish Congress, panned Ukraine, stating that they were “surprised by the threats of the Embassy of Ukraine in the State of Israel to punish the Jews of Israel, for their communication and connection with the part of our people, the Jews of the Crimea.”

Ukraine must not “interfere in Russian-Israeli relations,” the Crimean Jewish groups contended, adding that the embassy’s statement was “aimed at undermining the legitimate right of Israel to carry out cooperation with their compatriots in Crimea [and] intimidate participants in legitimate economic activity.”

This is not the first time that the Crimean Jewish community has been at odds with Ukraine.

Last month the Crimean Jewish Congress issued a harsh statement lambasting Ukrainian President Petro Poroshenko, who had accused the Kremlin of stirring up anti-Semitism while addressing the Knesset during a state visit.

Source: THE JERUSALEM POST

26/01/2016

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Prospects of Arabian Investments in Ukraine

oksana — Fri, 25 Dec 2009 20:19:18 +0000

Arabian money is still practically not noticeable here. But while Kiev fussy searches for investors, the Arabian business silently stands behind the door of the Ukrainian economy and waits, when it will be let in.

Tall, swarthy, dressed in traditional white Arabian tunic Mahrus Besiso, the vice-president of the Kuwaiti group of companies Al-Bader Trading Co., is strikingly distinct in the environment of men in suits and women in skirts. But to become the outstanding public figure in the Ukrainian-Arabian forum “Investment prospects in Ukraine”, which took place in October, helped him not his image, but "revelations" concerning investment plans of Kuwait in Ukraine. For example, only one of the projects which are considered by the company nowadays assumes building of a new high-grade city on the area to nine millions square metres in thirty — one hundred kilometers from the Ukrainian capital.

With the crisis beginning in search of investors Kiev sharply switched from the Western countries to the countries of the Far East. But it thus disregarded that possibility, which itself goes to its hands. Nowadays the colleagues of Besiso — businessmen from the Middle East and the North Africa — more actively than the others storm offices of the Ukrainian consulting companies. They steadfastly consider the Ukrainian market, consider possibilities of work, and weigh chances of success of investments. And though they come to Ukraine only with modest investments yet, in the long term they are ready to put any sums. However, for this purpose the help of Kiev is essential for them, too.

In a proper place in due time

When the crisis burst, the world economic started to compress and the western companies bankrupt under weight of debts, the Arabian investors were seriously damaged by investments into the western actives. Therefore, without hesitation, they started to correct their investment strategies. And, deducing from the American economy a considerable part of means, they started to invest into projects in their own states, and to invest a part of means (to diversify investments) into alternative markets of developing countries.

Ukraine is among the states which got to sphere of Arabian "research". Representatives of the Middle-Eastern world considered it before. Last two years delegation from this region in the quantity of 20-30 representatives of businessmen came to our country quarterly. “But while the Ukrainian market endured investment boom, the Arabian investors considered that its actives are overestimated, — the head of the international department of juridical company "Integrites" Ekaterina Kardash says (the company closely co-operates with the companies from the countries of the Middle and Far East and Latin America and accompanies a significant amount of transactions of the Arabian business in our country). — When the prices fell, this market became for the Arabian business much more interesting”.

Nowadays businessmen from the Middle East steadfastly consider the Ukrainian actives. If last year the Ukrainian-Arabian investment conference was visited by less than hundred representatives of the Arabian world, on the next, which took place in October 2009, arrived already more than 270 ones. Shortly to Ukraine is going to arrive a delegation from Kuwait; in May intention to open in Ukraine its investment office was declared by Libya. And according to Ekaterina Kardash, the Arabian investors are interested in possibilities of investment participation in Ukraine much more, than their colleagues from the West, China and even neighboring Russia.

Keen interest

$12 milliards — so much may invest to Ukraine Kuwaiti Al-Bader Trading Co. At least, in such a way were translated words of Mahrus Besiso, after all, the similar project in Sudan costed the company $12 milliards.

Appetites of the Kuwaiti companies inspire. According to Mansur Al-Oleyni, the substitute of the ambassador of Kuwait in Ukraine, they consider investment objects in Crimea and Carpathians, planning to be engaged in building and also to buy up inactive factories and manufactures in these regions. From the same country the largest Arabian investment into energetic sector already came to Ukraine. In February of the last year Kuwait Energy Co company created in the Poltava area the enterprise for manufacture of gas condensate.

As a whole interest to Ukraine is shown by the majority of the countries of the Middle East and the North Africa nowadays. They are involved in the Ukrainian agrarian sector, building, metallurgy, gas production and tourism.

In agricultural branch of our country already work Lebaneses, companies from Morocco, engaged in cultivation of fruits, and also state Кapo Group from Egypt. Cairo is interested in direct investments into cheese manufacture in Ukraine. Businessmen from Libya, Turkey and Saudi Arabia show interest to acquisition or rent of the Ukrainian land. Malaysia is interested in work in the Ukrainian agrarian sector, too. However, Malaysian investors are confused with political instability in Ukraine. Therefore in the program of bilateral cooperation for 2010-2015, developed by Malaysia, investments in the Ukrainian market are not presupposed, and interrelations between our countries are limited by export-import.

Egyptian companies work also in the building sphere. At the same time, unlike the western and domestic building companies, Arabs prefer to build habitation not in the central areas of cities, but on suburbs and in remote provinces — for the population with average and low level of income.

Interest to metallurgy shows all the same Al-Bader Trading Co., and also business of Saudi Arabia. Since summer of this year in Kiev work representatives of the Arabian companies. They investigate possibility of participation in this sector, and also investments in know-how working out in our country. Libya, according to the government of Ukraine, is interested in building of refinery in Odessa region. The exception of the harmonous list of interested in the Ukrainian market are made only by Oman and Qatar.

However, interests to this or that Ukrainian branch define not only economic reasons. Partners from the Middle East expose variety of ethical requirements which business should correspond. Norms of Shariat forbid them to invest into projects connected with alcohol, game business and certain kinds of entertainments. “There is an example when the Arabian investor refused to grant investments to the Ukrainian company only because he learnt that among other actives of its owner there is a business connected with alcohol”, Ekaterina Kardash says. Besides, norms of business dealing in the Arabian countries forbid to give interest-based credits. Therefore, Arabs work in Ukraine not for interest, but for dividends, and invest into business only on the terms of entering into the share capital.

And still, these "but" narrow prospects of attraction of the Arabian capital into our country. Moreover, as it declared Mahrus Besiso, attention of Arabs will not be limited by the listed sectors. In attempt to satisfy their investment appetites the Arabian business actively studies the Ukrainian legislation, practice and mentality from the point of view of rationality of capital investments in all spheres of economy.

However, at all this interest there is one feature: if already mentioned Kuwaiti building company dares to invest money in the Ukrainian market, it will be the first scale investment of the Arabian business into Ukraine. While, despite a keen interest, large Arabian corporations practically do not come on our market (an exception is Kuwait Energy Co). And though the sums of transactions reach sometimes tens millions dollars, they cannot be compared with those volumes of investments which are able to invest the Arabian states.

Bad reality, good (?) future

In the beginning of October with support of the Arabian money Uzbekistan created the investment company with the authorised capital $500 million. Investor was the State Investment Fund of Oman, the share of Tashkent in this project will make only 25 %. A year before the government of Uzbekistan and Dubai Holding from the United Arab Emirates created investment company "Uzemiratesholding". In the authorised capital structure which size will make $1,25 billion, Dubai Holding will posses 80 % of actions...

In economy of others including the Post-Soviet countries, actively invest the largest Arabian corporations, and the state Arabian funds, including funds of well-being of nations. In October, according to research organisation Sovereign Wealth Fund Institute, in "storehouses" of the Arabian state investment funds there was $1,65 milliard.

But, unlike Uzbekistan, Ukraine drops out of a holder of those states for which money of these funds — and large private Arabian corporations, too — is now accessible. “To make sovereign fund of well-being of Kuwait invest into Ukraine, Kiev at first should show that with it can effectively work private Kuwaiti business”, they say, for instance, in the embassy of Kuwait.

While our country does not satisfy this requirement, after all even at the private level cooperation with the Arabian countries goes with the big scratch. The Arabian business, as well as all other business in Ukraine, suffers from fluctuations of the rate of exchange in our country, excessive taxation, high level of corruption and complains of high political risks. “Moreover, Egyptian investors were dissatisfied with the quality of preparation of the Ukrainian workers and complained that for successful conducting of their agro business in Ukraine they should bring here their Arabian experts”, Ekaterina Kardash says. At last, to feel confidently in the Ukrainian market, the Arabian business does not have enough banks which work is comparable to norms of Shariat. Even there were no such banks at all. And for realisation of scale investment projects in the state many Arabian investors need numerous middle class. In Ukraine it is practically not present.

The result is clear. Despite obvious interest to the Ukrainian market and the quantity of delegations from the Arabian world, visiting our country, for two years Ukraine closed less than 10 transactions.

Meanwhile if to correspond the requirements Arabian business, participation of the Arabian investors in the Ukrainian projects will not be long awaited. As it told Khalid Jasim Al-Shamari, the temporary responsible in affairs of Iraq embassy in Ukraine, already nowadays a part of the Arabian businessmen coming to our country, come here not as independent investors, but as intermediaries. Here they try to come into contact, to "probe" conditions for work and then to bring here large Arabian corporations. Second convenient and qualitative "bridge" to investments of the Arabian business is embassies of these states in Ukraine. Members of the Arabian diplomatic missions are often representatives of parties in power in their homeland, and even sometimes members of ruling families. For example, the ambassador of Palestine in Ukraine Dr. Khalid Arikat is the relative of one of statesmen of his country. Henceforth, employees of embassies of the Arabian countries have a direct exit on those who make decisions in their states, and may literally bring the Arabian investments into Ukraine. Dr. Arikat made it - he personally brought his relative to Kiev for acquaintance with the Ukrainian business. And if Kiev creates favorable conditions for business work in Ukraine, Arabian embassies will quickly inform about these changes in their capitals.

Business under the laws of Shariat

Process of choice of the counter-agent by the Arabian companies includes not only price offers and the business analysis, but also check of financial indicators of this counterpart even if it is a question, say, only of export-import transactions (in habitual for Ukraine practice due diligence is carried out already at a stage of negotiations about business purchase).

By norms of Shariat it is forbidden for Arabian companies to participate in business connected with gambling, alcohol, and certain entertainments. Therefore the Arabian companies watch that the company in Ukraine which they co-operate did not conduct its activity in these spheres.

Ethical rules of business dealing forbid the Arabian companies to co-operate with the counterparts somehow connected with Israel.

The Islamic right forbids the companies to charge or pay interest, therefore the Arabian business does not use interest-based bonds and monetary credits in their work. Instead it uses special Islamic financial tools which fix a share in the general property in a certain active or interest which the emitter possesses.

By Ukrrudprom

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