Albania is a rising economy in Europe and as such, it offers many great opportunities for investment. This mostly unexplored and unexploited investing paradise is characterized by a strategic geopolitical position and a rich variety of terrains. Located in the north eastern shores of the Mediterranean Sea, Albania possesses immense potentials to intercontinental transportation, in addition to having easy access to the rest of the Old Continent’s major ports. The various terrains are a significant sign that clearly points to the vast wealth of natural resources which are hidden underground, like minerals and iron, or are running above ground, like rivers and forests.
To top all the aforementioned attributes of the Albanian economic scene we have to mention the young age of its people. Contrarily to the rest of the Old Continent, Albania has a very young and dynamic population with good education. In the last decade the rate of higher education graduates has increased notoriously. This factor is enough to guarantee the success of any project which may require a big number of skillful and professional young executives.
In a nutshell, Albania is the best place for investing because it has all that is required for an economic breakthrough and, considering the recent political reforms in promoting and supporting foreign investments, this long awaited boom is obviously round the corner. But, as the saying goes ‘the early bird catches the worm’, only the brave pioneers to invest in Albania will taste at full the delights and profits of such breakthrough.
Below you can have a glimpse to the recent reforms in economic policies that the Government of Albania has implemented with the aim of attracting foreign investments.
Law no.7764, dated 02.11.1994, ‘On Foreign Investment’ draws the general framework for foreign investments in Albania. It offers all foreigners, either physical or judicial persons, a range of provisions including:
- No sector is closed to foreign investment and no prior government authorization is needed to invest.
- There is no limitation on the percentage share of foreign participation in companies: 100% foreign-owned companies can be set up.
- Foreign investment may not be expropriated or nationalized directly or indirectly, except in exceptional circumstances in the interest of public use as defined by law.
- Foreign investors have the right to repatriate all funds and contributions in kind of investments.
- Most favourable treatment according to international agreements is provided.
No distinction is made between foreign and domestic investors predicted in Law no.7638, ‘On Commercial Companies’. This regulates the activities of companies and establishes the type of legal structure under which companies may be formed.
Albania’s tax system also does not discriminate against foreign investors. Likewise, legislation concerning the public procurement process makes little distinction between foreign and domestic firms.
Furthermore, the Albanian government provides special treatment for foreign investors such as giving them liberty to invest in all the sectors of the local economy, exempting them of prior government authorization, removing limitations and restrictions to complete ownership for foreigners and foreign companies and to profit and capital repatriation too.
As mentioned above Albania is a rising economy with unparalleled potentials for a big boom happening soon. As so, any economic sectors poses a great chance for investing with guaranteed profits. Main sectors that guarantee big profits are renewable energy, tourism, agriculture, manufacturing, transports and logistics, ICT services, mining industry etc. Some of the natural resources which are found in abundance in Albania are chromium, iron, nickel, coal, timber, water etc.
Following is a brief account on some of Albanian main economy sectors. It should be helpful to create a general idea on the landscape of these sectors.