The Zaporizhzhya region is characterized by a number of the factors, which make it attractive for investing. They include:

- powerful industrial potential of the area and prospective growth;

- high level of export orientation in the economy of the region;

- highly developed scientific and technical potential;

- qualified labor force and administrative personnel;

- advanced infrastructure of transport and communications;

- advanced agriculture and food processing industry;

- geographical location as the "gate" to the Russian and European markets;

- opportunity of absolute foreign property at the enterprises of the region without any temporary restrictions;

- advanced bank network;

- maintenance of property, financial and investment risks in the leading insurance companies of Ukraine and world.

In addition, the Zaporizhzhya region cooperates with the international financial institutions and programs of the European cooperation: EBRD, IBRD and TACIS.

The leading foreign companies and investors, such as the Swedish company "Baltic Beverages Holding AB", Italian "IVEKO", Slovak "MINERFIN", Korean "Daewoo Heavy Industries" and "Daewoo Motor Co, Ltd." already cooperate with the enterprises of the Zaporizhzhya area and have been investing in the economy of region.

The Zaporizhzhya region has a rich history and remarkable traditions.

Historians and archaeologists confirm that people inhabited the area from immemorial times. In IX-XII centuries these lands were densely populated. But in XII century the territory became deserted because of local wars and constant attacks by nomads. By the end of XV century, Zaporizhzhya Cossacks started controlling the region.

The unapproachable island Khortitsa became one of the centers of the Cossacks army, a formidable force in the struggle of the Ukrainian people for freedom. Zaporizhzhya became the cradle of Ukrainian democracy, because Zaporizhzhya Cossacks were the first in the territory of Ukraine to create a political formation with all the attributes of a republic.

At the end of 1770 Aleksandrovsk Fortress was founded, which overtime developed into the city of Zaporizhzhya. By the end of the XVIII century Zaporizhzhya was a trading center along the Dnipro rapids. Shipping lanes converged near the rapids, and two land roads supported trace. Annually, there were 4 trade fairs.

Zaporizhzhya territory received a new impulse for development in the second half of the XIX century. An industrial zone arose, supported by the active participation of foreign, especially western, capital. Already in the beginning of the XX century, 65 enterprises operated in the city of Zaporizhzhya.

A real industrial and construction boom started in early 1930s with the beginning of the operation of the Dnipro hydroelectric power station. The powerful metallurgical complex, created in the region, furthered development of many industries, including mechanical engineering. Zaporizhzhya has become one of the industrial centers of Ukraine and Eastern Europe.

The Zaporizhzhya region produces electric power, high-quality steel, ferrous and non-ferrous metals, abrasive and cable products, aluminum and other non-ferrous metals, power transformers, cars, agricultural machines, various electromechanical devices and equipment.

The region is unique in Ukraine, due to the presence of powerful power supply sources. Almost 28% of all electric power in Ukraine are generated here. The power complex of the region is represented by three generating stations: Zaporizhzhya Nuclear Power Plant, "Dniproges" Hydroelectric Power Plant, and Zaporizhzhya TPP, the most important thermal power plant in Ukraine.

There are more than 160 large industrial enterprises in the region. The metallurgical complex is represented by the world famous enterprises of ferrous and non-ferrous metallurgy, such as open joint-stock companies "Zaporishstal" – the leading manufacturer of steel and cast iron; "Dniprospetsstal" producing special steel; "Zaporizhzhya Aluminum Plant" – the only Ukrainian producer of aluminum and alumina, the basic raw material for the former; "Titanium-Magnesium Factory" – the only Ukrainian producer of spongy titanium and a leading manufacturer of germanium and crystal silicon.

The machine-building branch in Zaporizhzhya characterized by its high technological output is represented by JSC "Motor-Sich" - productions of air engines for planes and helicopters of main airlines, such as CB Antonov, Jakovlev, Tupolev, Beriyev, Kamov, Mil; JV"AvtoZAZ-Daewoo" - productions of cars; JSC "Zaporizhabraziv" – leading productions of abrasive materials and tools not only in Ukraine, but throughout the world.

The enterprises of this branch make 28.4% of all centered pumps in Ukraine, 23.7% of refrigerating machinery, 58.1% of bridge and special electrical cranes.

The share of the region’s industrial production in that of the whole of Ukraine is 8,2%.

The Zaporizhzhya region is traditionally agrarian. Taking into accounts its geographical position and climatic conditions, the agrarian sector of the region is considered highly attractive for investment. The program of social and economic development of the Zaporizhzhya region is recognized as a priority.

The agricultural territories total 2242 thousand hectares, or 5.4% of the agricultural lands of Ukraine, including 1,888 thousand hectares of arable lands and 263,4 thousand hectares of irrigated lands. Most soils contain a highly fertile humus layer.

Plant growing accounts for 57% and cattle breeding for 43% of the agricultural production. The basic agricultural focus includes grain crops (winter wheat, barley, oats, buckwheat, corn), growing of oil crops (sunflower, soy, rape), vegetable growing and gardening, poultry and cattle farming.

The region ranks fifth in Ukraine in terms of grain production and is the largest producer of sunflower seeds. Due to the highly fertile soils, the productivity of grain cultures has been growing and in 1999 reached 2.12 tons from hectare, that is 0.16 tons more than on the average in Ukraine. Using intensive technologies, productivity can be increased to a level of 3.5 tons from hectare and more.

The process of reform on the basis of private property has been completed, which provides an opportunity for favorable cooperation between farmers and investors.

Cattle farms (both meat and dairy) have the potential to supply the food processing industry with raw materials.

The Zaporizhzhya region provides 7,0% of the foreign trade turnover of goods and services in Ukraine. The region occupies fourth place after Dnipropetrovsk, Donetsk and Kyiv.

Our partners in foreign trade are more than 100 countries of the world. Major partners in foreign economic relations are Russia, China, Turkey, Germany, Belarus, USA, Hungary, Slovakia, and Estonia.

The area shows a steady positive export – import balance.

The share of export production is 40% of the industrial production of the region.

The commodity structure of export is very diverse, but the basic exported products are ferrous and non-ferrous metals and goods made of them, electrical machines, equipment and mechanisms, and products of the chemical industry.

The greatest volumes of export deliveries are carried out by open joint-stock companies: "Zaporizhzhya metallurgical plant "Zaporishstal", "Zaporizhzhya aluminum plant", "Zaporizhzhya ferroalloy plant", "Dniprospetsstal", "ZTZ".

Machines and mechanical equipment, mineral products including fuel, oil and petrochemicals, ores, and salt are the main imported products. The basic importers in the region are JSC "Zaporizhkoks", JSC "Zaporizhvognetryv", and JSC "Zaporishstal".

The Zaporizhzhya region has a high scientific and technological potential.

Focus is placed on scientific research institutes, designing institutions and departments, research and development departments of industrial enterprises.

- Energy and resource saving technologies;

- Low waste or waste processing technologies;

- Production of new materials, substances and products with high-quality properties;

- Perspective information technologies, creation of complex automation devices and communications systems.

There are many world-level technologies developed, including, among others, technical re-equipment of power transformer test complexes and a technology of production of frictional parts for "Antonov" aircraft brakes from carbon-carbon composite materials.

Efforts have been taken out to prepare serial production of engines D-27 for planes AN-70, carry out technical modernization of the steel alloy process, and master production of convection radiators.

The labor market of the Zaporizhzhya region is especially attractive, due to:

- High level of education and qualification of the staff;

- Significant competitive environment, i.e. large offer of manpower;

- Favorable economic conditions (advanced industries);

- Management of labor resources at the regional and local level (through employment centers);

- Plentiful sources of qualified staff (a large number of vocational schools and higher educational establishments).

1,13 million people, or 57% of the Zaporizhzhya region population, are of employable age. 60% of the population live in the city of Zaporizhzhya and the towns of Melitopol, Berdyansk, and Energodar. 777 thousand people are employed, including 539.4 thousand (more than 69%) working in the production sector.

The Zaporizhzhya region has an advanced financial structure. 49 banks and bank establishments operate in the region, including 6 independent regional banks. Such regional banks as "Slavyanski", "Industrialbank", "Metallurg" and "AvtoZAZbank" belong to the "group of the large banks" of Ukraine. Their operations are controlled by a branch of the National Bank of Ukraine in accordance with the Law of Ukraine about Banks and Banking Activities.

Insurance services in the region are provided by 13 local insurance companies and 40 subsidiaries, representative office and branches, of which 15 are structural divisions of companies based in other regions of Ukraine. The activity of the regional insurance companies is supervised by the Committee on supervision of insurance activity in Ukraine.

Insurance of export credits relies on automatic reinsurance by leading German, French and American companies, such as the concern "Gerling", groups "Scor", "Sent-Paul", and "ERK-Frankona". The total insurance funds of the partners of the "Inderzhstrah" Transnational Insurance Company constitute tens of billions of dollars.

Partnerships between the leading insurance and reinsurance companies of Ukraine and of the world make it possible to insure large property and financial risks of regional enterprises and investors.

Control over the turnover of securities is carried out by the regional branch of the State Commission on Equities and Stock Market.

The importance of small business has been increasing in the social and economic life of the Zaporizhzhya region. The rise of small business observed proves the willingness and ability of a wide stratum of the population to obtain economic independence.

13% of all the employed work in small business. Out of nearly 24 thousand businesses, 6.4 thousand are small enterprises, which provide jobs for 43 thousand people. The small enterprises account for more than 6% of the goods and services in production. The specific weight of products sold by the small enterprises is more than 20%. In addition, there are 50 thousand registered individual businesspeople. Most of them work in the trade and service sector. Small enterprises operate mostly in real estate business, information services and computer maintenance, trade, and restaurant business.

The ramified infrastructure created is an important part of the market economy. 49 commercial banks render their services to businesses, 14 consulting firms and more than 75 legal and audit firms provide consulting support, there are business centers and business incubators. Managerial and technical support is provided by regional commodity and stock exchanges, trade houses and a business association.

Since the start of privatization, 2,470 businesses in the region have been privatized. Now 90% of the total of enterprises and organizations are private, and 60% of industrial enterprises are privatized. Together they produced over 70% of the total industrial production in 1999.

More than 300 businesses are monopolized, of which almost 60 are natural monopolies. Demonopolization of the food-processing sector has been completed. Monopolistic situation in trade, public catering, and consumer services has practically been eliminated in the region.

The Zaporizhzhya region is considered attractive to investment due to its large industrial potential, the presence of natural riches, its own power resources, high scientific and technological potential, advanced transport infrastructure, advanced bank system, and accessibility of the markets of Ukraine and the CIS countries.

Constant work has been carried out to attract investments to develop the economy of the region, such as the formation and updating of a databank of investment projects, some of which have passed a preliminary expert examination on conformity to requirements of international financial organizations.

The Zaporizhzhya region accounts for 8% of the total of investments in Ukraine. The region is the third largest recipient of foreign direct investments in the country. The foreign direct investments in the regional economy total USD 215.3 mln. allocated to 143 enterprises.

The industries of the highest interest for investors so far include: mechanical engineering and metal working (75,6%), food-processing industry (9,7%), ferrous metallurgy (8,5%).

Today, there are 255 joint ventures with participation of foreign businesses (24 of whom, registered in the region, have 100% foreign capital) and 16 representative offices of foreign firms. Among the most successful enterprises with foreign capital are JSC "Iveco-Motor-Sich" invested by the Italian company "IVEKO" (USD 8.3 mln), JSC "Beer and Soft Drinks Factory "Slavutich" invested by the Swedish firm "Baltic Beverages Holding AB" (USD 20 mln.), JSC "Zaporizhzhya Iron Ore Factory" invested by the Slovak firm "MINERFIN" (USD 18 mln), and JV "AvtoZAZ-Daewoo" invested by the Korean firms "Daewoo Heavy Industries Ltd." and " Daewoo Motor Co, Ltd." (USD 150 mln).

The Zaporizhzhya region has an advanced transport system.

The network of highways, totaling 6680 km, links all of the populated areas of the region. Some of the strategic highways crossing the region are Odesa-Melitopol-Novoazovsk, Kharkiv-Simferopol-Sevastopol, and Boryspil-Dnipropetrovsk-Zaporizhzhya. The ramified railway network connects all basic industrial centers of the region with the cities of Ukraine, countries of the CIS and Western Europe.

Automobile and railway transportation include great amounts of cargo and passenger transportation. An increasing number of agencies provide international auto transportation services.

An important part of the Zaporizhzhya region transport system is the large navigable waterway, the Dnipro River flowing from the north to the south of Ukraine.

Berdyansk seaport, by the Sea of Azov, is a marine gate for the Zaporizhzhya region. The terminals and other port equipment allow them to accept and store most kinds of cargoes and to serve all types of ships, both river and ocean ones. The port has a good railway access, which allows it to deliver cargo to any region of Ukraine.

A significant share of cargo in the region is handled by the Zaporizhzhya river cargo port.

An important role in the transport system of the region is played by the Zaporizhzhya international airport occupying fourth place in Ukraine in traffic. There are also two local airports in Melitopol and Berdyansk.

The area has an advanced communication system, including a ramified telephone network, systems of mobile and beeper communication that have been actively developing, and a digital telephone station, which has recently been launched. The on-line access to Internet is provided. There are several powerful E-mail servers.

The Zaporizhzhya region is the first in Ukraine in the amount of phone booths available for local communication. The density of the telephone network operated in the region is 97,7% (354 thousand numbers), in comparison to 95,1% around Ukraine.

There are 12 higher educational institutions of III-IV levels of accreditation, in which 48.4 thousand students receive their education, and 23 institutions of I-II level of accreditation, with 17.5 thousand students. Most well-known among them are the Zaporizhzhya State University, Zaporizhzhya State Technical University, Zaporizhzhya State Medical University, Zaporizhzhya State Engineering Academy, and the Tavria State Agrotechnical Academy. These have a considerable academic and research potential to meet the needs of the high-tech industrial enterprises of the region for highly skilled staff.

In educational institutions of III-IV levels, students are trained in 112 specialties. The new market economy has required introduction of such specialties as: "economic cybernetics", "foreign trade management", "specialized computer systems", and "sociology".

More than 5 thousand employees in these educational institutions are engaged in research work, among them: 28 academicians of sectoral academies of sciences, 184 doctors of sciences/ professors, and 1420 candidates of sciences/senior lecturers.

The higher educational institutions carry out R&D in the promising areas of science and technology, such as energy conservation, alternative sources of energy, ecology and environmental protection, pharmacy, organ and tissue transplantation, and medico-ecological issues.

The scientists at the higher educational institutions of the region keep in touch with 60 educational institutions of near and distant countries, leading to the further integration with European higher education.

The Zaporizhzhya region has significant recreation and resort resources. The favorable climate of the south of Ukraine, the wonderful riverside landscapes of the Dnipro, its sources of mineral water and medical mud, and the mild and warm Sea of Azov attract tourists. Berdyansk, Primorsk and Kirilovka are recognized as resort areas.

Natural and historical sights create conditions for all kinds of leisure activities, especially tourism. A lot of sanatoriums, holiday centers, and sports camps are situated along the coast line of the Dnipro river and the Azov sea.

Taking into consideration the unique natural and medicinal features and the developed leisure infrastructure, tourism and healthcare are promising directions for foreign investments.

Zaporizhzhya has a rich cultural life. Connoisseurs of art can enjoy performances of many theatrical groups, as well as the creativity of the Zaporizhzhya symphony orchestra, which is recognized as one of the best in the world. There is a full calendar of festivals and concerts. The international connections of the Zaporizhzhya region extend each year.

Historical documents can be found in 19 museums and in the National Reserve "Khortitza", situated on Khortitza Island. Painting and art photography works are exhibited in numerous exhibition halls.

Zaporizhzhya sportsmen have won numerous prizes in international competitions and Olympic games in various kinds of sports, and Zaporizhzhya has been gloriously called the handball capital of Ukraine.

There is a rowing channel Zaporizhzhya (an artificial reservoir connected with the Dnipro River), which is considered the best in Ukraine.