Albania, the entry gate of investments in Eastern Europe, Balkans

For the country's prime minister, Edi Rama, foreign investments are vitally necessary and today constitutes priority priorities. Already Albania has a completely new and specifically focused regulatory framework focused on attracting foreign investments, or “regime”, local capital.

The law, which again categories strategic investments, further strengthens legal guarantees for investors, brings two basic innovations in relation to strategic investors. The first involves legal guarantees, and the second draws up the <x0ft track track”, a fast lane in administration to support investors to obtain their permits and begin their investment.

Foreign investments that would have more impact on the country's economic-Social development would be what would help further productivity growth in the country. Strategic potential investment sectors

Such is considered the energy and mining sector, as well as under relevant sectors, energy, hydrocarbon or mining; transport sector, electronic infrastructure and waste and urban waste, with under the sea, air, railway, transport networks, electronic communications, urban waste, as well as water-canalisation; tourism sector, under the tourism sector; agriculture and fishing sector, under agricultural production sectors, livestock and fishing infrastructure; and the area of technology and economic development, with the industrial/technology sector.

Strategic investment selection criteria

Under the new legal definitions, strategic investments are private, public or public-private investments, which have impacts on the national economy and carried out by domestic, foreign legal persons, or in the form of co-operation between legal, domestic and foreign persons.

The criteria for determining public interest in selecting a strategic investment are: the value of investment; the time of realisation of investment; the productivity and increased value of investment; the opening of new jobs; the economic sectoral priority; the development of regional economic development; the development or improved conditions and standards for goods production; and the provision of new technologies to increase investment competitiveness and efficiency; increased overall security and quality of citizens; and environmental and consumer protection.

Tax relief for strategic investments in tourism

The Albanian government approved a light tax package that will be implemented for strategic investments mainly in the tourism sector, which is recognising a high growth boom in recent years. Official statistics speak of 1.5 billion euros in revenues during 2017 from tourism, while this year the government expects 1.7 billion euros in revenues from this sector.

The package forecasts that as of January 1st, new four-star and 5-star hotels that are being built freshly will be excluded for ten years from tax-profit. In parallel, they receive infrastructure tax and have a reduced T degree VSH 6%.

But tax advantages are not the only offer the government has for business. In parallel, investments will also be driven by deregulation reform, which simplifys procedures and lowers costs for business.

Import/export data

During 2017, goods exports amounted to $273 billion, increasing by 12.1 %, compared to a year ago, and imports of goods reached $626 billion, increasing by 8.1% compared to the previous year.

Export structure

Groups that have positively impacted the annual growth of exports are “maternity construction and metal” with +4.9%, “text and shoes” by +4.4%, “food, drink, tobacco” with +1.9%. The annual change in exports has negatively affected the <x6-mimeral group, fuel, electricity” by -1.4 %, due to the country's severe drought in the second half of the year.

Export Destination

During 2017, countries with which Albania has had greater export growth compared to a year ago are Italy with 9.9%, Kosovo with 26% and Spain at 87.5%. Import structure

In other cases, the annual growth of imports has affected the group <x0morial, fuel, electricity” with +2.8%, “text and shoes” to +1.2%, “chemical and plastic products” with +1.2%.

Trade partners

Trade exchanges for 2017, with EU countries accounting for 66.3% of all trade. During this year, exports to EU countries total 77.1% of total exports and imports from EU countries total 61.6% of total imports. The main trade partners are Italy with 36.2%, Greece at 6.8%, Germany, at 6.8% and China with 6.4%.

Standard and Poorz positive marks for Albania's economic development

International Rating Agency “Standard and Poorés” this week praised Albania's economic development with positive marks as it identified a series of investments, including the Trans-Adriatic pipeline (TAP), which will connect Albania with Italy and the Caspian Sea, or construction of the Devolli hydropower plant, are supporting economic growth. S&P suggests the government following reforms that help the country attract foreign direct investment and unlock its economic potential in energy, tourism and agriculture.