EU: Turkish investments, expansion in Kosovo

The European Commission has noticed an increase in Turkish investments in Rajon, but this is especially evident in Albania, Kosovo and Bosnia, as Serbia extends its presence in Serbia and Montenegro.

Eurostat in study “International trade in the Balkans” over a decade (2005-2016) referred to the EU as remaining the biggest investor in the Western Balkans.

Comparing investments from the EU to the overall foreign investment stock in 2015, they are 34% in Kosovo over 62% in Bosnia, Albania and Montenegro and over 79% in Macedonia and Serbia, Monitor reports.

As compared to GDP investment from the EU starts at 19% GDP in Kosovo, at over 27% in Bosnia, Albania and Macedonia, and more than 65% of GDP in Serbia.

But the study of Eurostat experts points to foreign investment with origin from Turkey is on the rise in Macedonia, Albania and Kosovo, reaching 2.4%, 4% and 6% of GDP in 2015, respectively. In Kosovo, Turkey is the only largest investor. While few or not present in Serbia and Montenegro.

In these two countries, Russia's growing investment presence has not, however, helped Russia's trade with Serbia and Montenegro to be on the rise as well.

In the post-crisis period 2008, Russia's ownership of the IHD stock in Serbia increased, while in Bosnia the presence of Russian investments is declining.

Russian investments occupy 15% of the stock in Montenegro and are mainly in real estate, while the presence of Russian investments is almost invisible in Albania and Kosovo.

There's also a Chinese presence in Rajon. Although Chinese investments are not included in foreign direct investment statistics, they are present through funding public infrastructure with projects in the transport and energy sectors.