Major investors flee Albania

The number of foreign and joint companies marked rapid growth in 2021, reaching the highest level ever recorded.

According to INSTAT data, at the end of 2021, there were 6,635 companies with foreign and joint capital in the country, with a 10% increase compared to last year. 600 new companies of foreign or common capital opened in 2021, out of the total 15 thousand subjects added in the same period.

In 2020, the number of foreign companies had dropped 6.3% compared to 2019, as a result of the consequences it created in the pandemic economy and the restrictions that were taken to curb it.

However, even in 2019, the number of foreign and joint companies increased by 3.2%.

Although the total number of foreign and joint enterprises in the country has increased significantly, it is the young who have made the difference, while large companies that employ more than 50 employees have noted significant declines.

According to INSTAT data, 44 companies, with more than 50 employees and 97 employees ranging from 10 to 49, were evacuated in 2021. The launderers are mainly in the industry, it was the only downward activity of the number of foreign businesses in 2021.

By contrast, 648 small subjects have been added, ranging from 1-4 employees and 93 businesses with 5 to 9 employees.

EU Countries Eminance

According to INSTAT, companies with foreign owners or collaborators occupied 5.6% of total enterprises, compared to 5.1% of active enterprises in 2020, and employ 12.7% of total employees.

Companies from European Union countries represent 57.6% of the foreign and joint enterprises. Owners or co-owners of Italian and Greek origin represent 45.5% of all foreign and joint enterprises. Foreign and joint companies have mostly concentrated in Tirana and Durres district, 68.9% and 12.7% respectively.

Services prevail, information technology grows

Services dominate in foreign businesses opening in Albania, with 38% of total, followed by trade at 24%. The services marked and the highest growth of foreign businesses, representing more than half of the subjects from this category, registered at vin 2021.

A positive phenomenon is increasing foreign businesses in “activity Information and communications”, which increased by 22%, or 97 new companies. This is the highest growth rate of all economic activities, followed by services, by 16%.

Technology and information have been attracting foreign investors, who provide services for the third years, exploiting the free cost of the workforce. Market operators have claimed that despite high interest, the problem remains the finding of the labour force specialised due to the migration of professionals.

Despite growth, the weight of IT businesses in the total of foreign subjects remains low, with only 8% of total.

Even businesses with foreign capital are generally small. Only 4.4% of foreign companies in the country had more than 50 employees. /Monitor. al