Albania: Foreign investment
In this page: FDI in Figures | What to consider if you invest in Albania | Procedures Relative to Foreign Investment | Investment Opportunities
FDI flows towards Albania have been rising steadily since the early 2000s, averaging close to USD 1 billion per year for the period 2008-2017. Acccording to UNCTAD’s World Investment Report 2020, FDI inflows amounted to USD 1,3 billion in 2019, unchanged if compared to 2018 level. FDI stock reached USD 8,8 billion in 2019. These investments are essentially in the oil, metal ore, infrastructure, construction and telecommunications sectors. According to data by the Bank of Albania, the main investing countries are Switzerland (with investments related to the Trans Adriatic Pipeline), the Netherlands (due mainly to the Hydro Power Plants in Devolli River), Canada and Greece (the two largest telecommunication companies in the country have Greek capital). According to figures from the Bank of Albania, in the period January-September 2019 FDIs towards the country reached USD 898 million, a 7.3% increase compared to the same period the previous year.
Albania has set up reforms to boost FDI. The state has adopted a tax reform that is advantageous to foreign investors and aims at reducing corruption and administrative difficulties which can be discouraging to investors. The long-winded procedures to obtain operating licences in the trade, construction and tourism industries have slowed down investment progress. A lack of transparency in public procurement and poor enforcement of contracts also hinder FDIs to Albania. In addition, investments continue to suffer from the lack of infrastructure and poorly defined property law. The country declared to target foreign investment in the following sectors: energy and mining, transport, telecommunications, infrastructure and urban waste, tourism, agriculture and fisheries. Albania ranked 82nd out of 190 economies in the 2020 Doing Business report published by the World Bank, losing nineteen positions compared to the previous year.
| Foreign Direct Investment | 2017 | 2018 | 2019 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 1,149 | 1,290 | 1,281 |
| FDI Stock (million USD) | 6,742 | 7,833 | 8,811 |
| Number of Greenfield Investments* | 3 | 6 | 5 |
| Value of Greenfield Investments (million USD) | 12 | 188 | 183 |
Source: UNCTAD - Latest available data.
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Albania is a developing country that needs foreign investors to develop large parts of its economy, which offers many interesting opportunities.
Albania is one of the least developed countries in Europe and the Albanian economy remains fragile and highly dependent on external institutional support. The main obstacles to the country's development and the attraction of foreign investors are:
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Find out more about Investment Service Providers in Albania on GlobalTrade.net, the Directory for International Trade Service Providers.
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Latest Update: July 2021