Three Years of Diia.City: A New Profile for Resident Companies and Sector Shifts

Three-Year Evolution of Diia.City's Business Community and Industry Makeup

According to Главком: As of early February 2023, the Diia.City legal framework hosts 3,707 resident companies, marking substantial growth for this initiative. Last year alone, the number of residents doubled, with 87% of new joiners being newly founded entities. This represents a shift from 2022, when only one-third of companies joining had been operating for less than a year at the time of entry. Notably, companies that joined in 2022 have doubled their employee count, and approximately 80% of all residents have expanded their teams since becoming part of Diia.City. This special economic zone was launched to foster Ukraine's tech and innovation sectors with a favorable regulatory environment.

Industry Breakdown and Geographic Distribution of Residents

The sectoral composition of resident companies reveals significant trends:

• 2,844 companies operate in the IT sector, accounting for 77% of all residents.
• In 2023, the share of IT companies among residents decreased to 63%.
• The proportion of companies involved in manufacturing other transport equipment grew to 13%.

Forecasts suggest that by 2025-2026, IT companies will again constitute 80% of new entrants, while the share of new participants from the transport sector is expected to fall to 5%.

The geographic registration of residents also shows distinct patterns. Kyiv leads with 2,012 registered companies, representing a significant majority. Lviv region holds second place with 502 residents (14%), followed by Dnipropetrovsk (6%), Kyiv region (5%), and Kharkiv (4%). It is important to note that 200 companies have left the Diia.City project since its inception, with most departures due to non-compliance with resident status requirements.

Diia.City, as an innovative legal framework for business, demonstrates the successful adaptation of Ukrainian companies to modern challenges. - Source: Diia.City

Despite economic instability and shifts in the business environment, the project continues to attract new participants, underscoring its vital role in fostering Ukrainian entrepreneurship. The rising number of residents and the evolving industry structure point to the activation of various economic sectors, which could form a foundation for the country's future economic growth.