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Home , Alexandroupoli, Drama (regional unit), Evros (regional unit), Kato Nevrokopi, Kavala, Kavala (regional unit)

Region of Eastern - Investment Profile

November 2017 Contents

1. Profile of the of Eastern Macedonia-Thrace

2. Eastern Macedonia-Thrace’ competitive advantages

3. Investment Opportunities 1. Profile of the Region of Eastern Macedonia-Thrace

2. Eastern Macedonia-Thrace’ competitive advantages

3. Investment Opportunities

4. Investment Incentives The Region of Eastern Macedonia and Thrace : Quick facts (I)

Eastern Macedonia and Thrace consists of the northeastern parts of the country, and is divided into the Macedonian regional units of , and and the Thracian regional units of , , and

•The Region covers 14.157 sq. km corresponding to 10,7% of the total area of . It borders and to the north, the prefecture of to the west and the Thracian to the south •The Prefecture of Evros, the borderline of Greece is the largest prefecture of Thrace. It borders Bulgaria to the north and northeast and Turkey to the East, having the Evros, The island of Samothrace also belongs to the prefecture of Evros •The prefecture of Rhodope lies in central Thrace covering 2,543 sq. km. The capital of the prefecture is , the administrative seat of the Region of East Macedonia and Thrace. •The prefecture 4.of Xanthi Investment covers 1,793 sq .Incentives km., of which 27% is arable land, 63% forests and 3% meadows in the plains •The Prefecture of Kavala is in East Macedonia and covers 2,110 sq. km. The islands of Thassos and Thassopoula also belong to the prefecture •The prefecture of Drama is well-known for the verdant ranges, the water springs, the rare flora and fauna. The mountainous cover 63,5% of the area, the semi-mountainous 25,30%

The Region of Eastern Macedonia and Thrace : Quick facts (II)

Demographics and Workforce quick facts

Population: 608.182 (2011) 5.6% of the total Greek population

Main macroeconomic data of the Region of Eastern Macedonia and Thrace

2012 2013 2014 2015 2016 GDP* 7,579 7,004 6,903 n.a. n.a. GDP per capita** 12,403 11,498 11,366 n.a. n.a. 4. Investment Incentives Gross fixed capital formation* 958 1,067 938 n.a. n.a.

Unemployment 22.8 26.7 24.1 23.4 22.8 Rate (%)

*In million euros **In euros Source: Hellenic Statistical Authority Significant performance indicators

Gross Value Added by Industry 2014 (Region of Eastern Macedonia and Thrace) Industry/ Sector Gross Value Added (amount in % in total GVA of the Region million euro) Agriculture, Forestry and Fishing 433 7.1 Mining, energy, water supply and 248 4.1 waste management Manufacturing 689 11.3 Construction 180 2.9 Trade, transportation and storage, 1,261 20.7 accommodation and food service activities Information and Communication 96 1.6 Financial and Insurance activities 162 2.6 4.Real Investment Estate activities Incentives772 12.7 Scientific, administrative and support 125 2.0 service activities Public administration, education, 1,926 31.6 health and social work activities Arts, recreation and other service 207 3.4 activities Total 6,098 100

Source: Hellenic Statistical Authority 1. Profile of the Region of Eastern Macedonia-Thrace

2. Eastern Macedonia-Thrace’ competitive advantages

3. Investment Opportunities

4. Investment Incentives Natural Treasures

The natural environment in the Region of Eastern Macedonia and Thrace is characterized by a variety of habitats, which host a great number of rare species, and by unique biotopes There are many significant protected reserves (the Elati forest, the Frakto forest, the only virgin forest in Greece, the Porto Lagos lagoon, the Evros Delta, the forest) The natural environment of the Region of Eastern Macedonia and Thrace is protected by the Ramsar Treaty and by the E.U. initiatives CORINE and NATURA 2000 The Rhodope mountain range, the forest complex in Drama and the riparian forest of , although they have been degraded, continue to be the most significant biotopes The Evros Delta, the Nestos Delta and the lake ecosystems are sanctuaries for a large number of different species of breeding or wintering birds, which is an indication of the good preservation of the natural environment and the diversity of the biotopes Agricultural Production

• The primary sector in Eastern Macedonia and Thrace, especially agriculture, plays a key role in GDP. An important advantage to the economic growth of the region is added by the forests, especially the forests in the Drama prefecture • The arable plains (40% of them are irrigated) are cultivated intensively, producing cotton, corn, , grains and tomato •In the Nestos Delta the agriculture of asparagus and rice is widespread. In north Evros and in the asparagus plant is systematically cultivated •The beans and the potatoes of are the most well known products of the area •In recent years the vineyards in the Prefecture of Drama have significantly developed for the production of wines of appellation, achieving international recognition •Agriculture is the main revenue in the Prefecture of Xanthi, as 45% of the population works in this sector.

Education and research (Ι)

•Democritus University of Thrace (DUTH) was established in July 1973 and started operating during the academic year 1974-1975. It was named "Democritus" in honor of the philosopher Democritus, who hailed from the town of Abdera in Thrace •The administration of DUTH is headquartered in Komotini, which is the capital city of the Administrative Region of Eastern Macedonia and Thrace. •The University is currently operating eight Faculties and nineteen Schools in four cities of Thrace - eight in Komotini, five in Xanthi, four in and two in •Overall, more than 15,000 students are studying at DUTH at undergraduate and post-graduate level •The University plays an important role in strengthening the national and cultural identity of the region of Thrace, and contributes to the high level of

Source: http://duth.gr/first/university/index.en.shtml

Education and research (ΙΙ)

School of Agricultural Sciences & Forestry (Alexandroupolis) Department of Agricultural Development (Orestiada – Evros) Department of Forestry and Management of the Environment and Natural Resources (Orestiada – Evros) School of Education Science (Alexandroupolis – Evros) Department of Education Sciences in Early Childhood () Primary Level Education – School (Alexandroupoli) School of Classics & Humanities Studies (Komotini) Department of (Komotini) Department of Language, Literature and Civilization of the Countries (Komotini) History & Ethnology – School (Komotini) School of Social, Political and Economic Sciences (Komotini) Department of Social Administration (Komotini) Department of Economics (Komotini) Law School (Komotini) Department of Hellenic Studies (Komotini)

Source http://duth.gr/department/index.en.shtml

Education and research (ΙΙI)

School of Engineering (Xanthi) Department of Architectural Engineering (Xanthi) Department of Electrical & Computer Engineering (Xanthi) Department of Production and Management Engineering (Xanthi) Department of Environmental Engineering (Xanthi) Department of Civil Engineering (Xanthi) School of Health Sciences (Alexandroupolis) Medical Department (Alexandroupolis) Department of Molecular Biology & Genetics (Alexandroupolis) Physical Education & Sports Science – Faculty (Komotini) Department of Physical Education & Sports Science Eastern Macedonia and Thrace Institute of Technology (Kavala) School of Technological Engineering School of Business and Economics School of Agricultural Technology School of Health and Welfare

Source http://duth.gr/department/index.en.shtml

Transport Infrastructure

The Region is served by two airports, two international ports the “Egnatia Road” that connects the port of Igumenitsa in with Alexandroupoli in Thrace and the railway network that passes through the entire region Airports 1 . Alexandroupolis “Dimokritos “Airport - Alexandroupolis 2 . Kavala “Megas Alexandros” Airport -

Ports 1. Alexandroupolis 2. Kavala

Large Infrastructure Projects (under development) - HRADF

• Τhe airport of Kavala is including in the cluster A of regional airports that HRADF concluded successfully international tender process in the granting of the right of concession for the development and operation of 14 regional airports in Greece. In particular, two 40-year concessions to upgrade, maintain, manage and operate two clusters of seven regional airports (per each) have been conferred to a consortium of companies consisting of Fraport AG Frankfurt Airport Services Worldwide and Slentel Limited of Copelouzos Group.

• The portfolio of the Hellenic Republic includes the ports of Alexandroupolis and Kavala. Particularly, HRADF holds 100% of the shares in the port and has the right to operate it until 2042. The Hellenic Republic is in the process of evaluating the most appropriate approach for the development of these ports.

Source: www.hradf.com Transnational "Sea2Sea" mega railway project

• Developments on the important transnational project "Sea2Sea", concerning the upgrade of the railway line, connecting -Kavala-Alexandroupolis- with the Bulgarian ports of , Varna and the of Danube •The implementation and upgrade of the Eastern "Railway Egnatia", costing approximately 2.5nbn euros, of which 1.7bn concerns the construction of the new "coastal" line design, electrified for the whole Thessaloniki-Kavala-Xanthi section, which promises to reduce the journey time by about 3 hours as well as the upgrade and electrification of Xanthi-Alexandroupoli-Ormenio section

Source: www.ypodomes.com Eastern Macedonia-Thrace offers an interesting environment for investment...

Eastern Macedonia-Thrace advantages ..are enhanced by investment incentives

Eastern Macedonia-Thrace boasts a number • Under the new Investment Incentives Law L.4399/2016, of comparative advantages related to its: enjoys attractive investment incentives varying from 35% to 55% of the total investment cost, according • strategic location, bordering Bulgaria on the to the size of the company and the region of the country North and Turkey on the East in which the project will be implemented. • Great existing transport infrastructure • The aid schemes of the Law include: • A widespread network of industrial areas 1) Tax exemptions 2) Cash grants • Academic-R&D infrastructure & dynamics 3) Leasing subsidies • Tourism and Cultural sites 4) Wage costs subsidy • Opportunities in the renewable energy 5) Stable corporate tax rate for 12 years 6) Financing of business risk through loans or equity sources 7) Fast track licensing • Opportunities from the very rich subsoil

(mineral reserves in gold, copper, silver, etc)

Operational Program Eastern Macedonia-Thrace 2014-2020

Expected impacts Investment incentives quick facts •Support of more than 370 SMEs and creation of some 860 employment positions New Investment law L.4399/2016: Subsidies of up to •Cooperation of 300 enterprises with research institutes, 55% for business plans promotion of innovation and ICT and start-ups creation •Reduce CO² blueprint of public buildings by 9,000 tonnes, Regional Development Fund (ERDF): 352,936,804.00 € produce 36,000 tonnes/year of geothermy and add 10,000 European Social Fund (ESF): 53,254,664.00 € tonnes of waste in the recycling process •Increase by 2,000/year expected visitors in the region and construct or upgrade 80 km of roads Funding Priorities •Cover 250,000 additional inhabitants with improved •strengthen the links between R&D and enterprises, focus on the healthcare services and increase capacity of supported development of economic activities identified by RIS3 and enhance childcare or education infrastructure by 4,000 people extroversion •Support some 55 social enterprises and benefit some 5,000 •explore geothermy, increase of energy efficiency in buildings, disadvantaged persons with health and social care services address specific risks, in particular floods and coastal erosion, •Promote Roma integration through Integrated Territorial improve water management as well as solid waste and water waste Investments management, promote natural and cultural heritage and reinforce accessibility in the region • investments in education, professional as well as in health and social care infrastructures •improving employment and skills in the areas of the regional RIS3 while improving access to employment for disadvantaged people, combatting discrimination, promoting social enterprises and access to health services •provision of technical assistance

Source: http://ec.europa.eu 1. Profile of the Region of Eastern Macedonia-Thrace

2. Eastern Macedonia-Thrace’ competitive advantages

3. Investment Opportunities

4. Investment Incentives Reasons to Invest in Thessaly

.Strategic location: Bordering Bulgaria on the North and Turkey on the East

.Natural and cultural treasures: Unique natural beauty combined with long history, religious treasures and friendly people

.A production locomotive : The primary sector, especially agriculture, plays a key role in GDP. The arable plains (40% of them are irrigated) are cultivated intensively, Tourism producing cotton, corn, tobacco, grains and tomato etc

.Tourist destination: Popular destination offering an upgraded and diversified tourist product that includes hiking in the , sightseeing, local gastronomy, sea sports Manufacturing etc

.Industrial sites complex: The region disposes over five industrial zones, one for each prefecture, providing land and easy licensing procedure for industrial use Food & Beverage . Potential in Renewable energy: Thrace has a very strong wind potential

.Transport infrastructure: The region disposing over substantial infrastructure, capable to support wide investment activity in the area Energy

.Urban infrastructure: The urban infrastructure is well developed, including a sufficient number of hospitals, both private and public, courts of various levels, banks, telecommunications, primary and secondary schools, etc

.Support of the local Authorities: The consistent and unwavering support of the local Authorities , as well as the hospitable and business

Tourism

Tourism Tourism in Eastern Macedonia-Thrace: Facts and figures (I)

Tourism data for the Region of Eastern Macedonia-Thrace (2016)

Region and 5***** 4**** TOTAL Prefecture Hotels Rooms Beds Hotels Rooms Beds Hotels Rooms Beds

Total Greece

444 67407 137210 1412 104562 203203 9730 407146 788553 Eastern Macedonia and Thrace Region 11 1035 2073 29 1910 3850 379 10833 21324

Rodopi 0 0 0 6 317 645 22 831 1613 Drama 1 73 147 3 173 365 20 587 1173 Evros 3 384 762 2 142 293 62 1979 3810 Thassos 3 272 561 10 882 1828 204 5067 10148 Kavala 2 179 359 5 328 573 51 1644 3132 Xanthi 2 127 244 3 68 146 20 725 1448

Source: Hellenic Statistical Authority Tourism in Tourism in Eastern Macedonia-Thrace: Facts and figures (II)

Tourism data for the Region of Eastern Macedonia-Thrace(2016) HOTELS EXCEPT CAMPINGS

REGION AND 2015 2016 PREFECTURE TOURIST ARRIVALS BEDS TOURIST ARRIVALS BEDS

GREEK FOREIGN TOTAL GREEK FOREIGN TOTAL

TOTAL GREECE

5,744,134 12,734,567 18,478,701 737,326 5,996,434 12,999,947 18,996,381 746,630

EASTERN MACEDONIA AND THRACE REGION 336,095 270,610 606,705 22,183 337,191 268,807 605,998 22,333

Rodopi 68,001 16,400 84,401 1,482 55,975 15,282 71,257 1,464 Drama 25,610 2,468 28,078 1,177 29,772 3,780 33,552 1,224 Evros 91,142 46,496 137,638 4,696 90,739 42,734 133,473 5,202 Thassos 22,864 106,585 129,449 10,355 26,280 115,248 141,528 9,999 Kavala 69,148 89,297 158,445 3,068 69,815 81,805 150,870 3,018 Xanthi 59,330 9,364 68,694 1,405 64,610 9,958 74,568 1,426 Source: Hellenic Statistical Authority

Major tourism attractions

Kavalla Xanthi Samothrace Thasos

Lake Ancient theater of Filippi Nestos Delta Frakto forest Numerous touristic activities

The region offers almost all types of touristic activities:  Cultural tourism (Archaeological Museum of Drama, Archaeological Museum of , Archaeological Museum of Kavala, Archaeological Museum of Limenas in Thassos) Religious tourism (the monastery of Ikosifinissa at Mount Pangaion, the monastery of Agios Syllas, the Baptistery of Agia Lydia, the Taxiarches Monastery, the Panagia Kalamous Monastery) Conference and exhibition tourism (Conference centre at Lydia, Exhibition Centre , Exhibition Centre in Komotini, Foundation of Thracian Art and Tradition, whereas hotels in every city provide facilities for organising various events) Ecotourism ( the Elati forest, the Frakto forest, the Rhodope mountain range, the Nestos Delta, the Evros Delta, the Pomak villages, beautiful beaches on the coastline, impressive mountains and forests) Therapeutic tourism (mud baths at , spa at Thermae and Potamia in Xanthi, in Samothrace and at Traianoupolis) Agrotourism (numerous agrotouristic farms and guest houses have developed recently in all the prefectures of the region) Investment opportunities in various tourism segments

Cruises and Sea tourism Eco Tourism Cultural and religious tourism

Therapeutic tourism Development of existing state & private assets Tourism: Indicative Investment Projects

Enterprise Greece maintains a portfolio of investment projects in all business sectors and Regions of Greece.

As far as Tourism in Eastern Macedonia-Thrace is concerned the portfolio of Enterprise Greece includes:

Land plots that could be used for tourism development Mixed use tourism projects under development Tourism facilities for sale or looking for co investors

Industrial activity

Since the 1980s, Greek industrial activity has been decentralized and a dynamic industrial complex was created in East Macedonia and Thrace based on: food and beverage production, textile and clothing, furniture, as well as intermediary industries of paper pulp, chemicals, and plastics. A range of companies located to the industrial areas of Xanthi, Komotini, etc.

•Prefecture of Kavala: In Kavala operated the only Phosphoric Fertilizer industry and in the industrial of the city there are marble industries. Both the industry of fertilizers and of phosphoric ammonium sulphate, as well as the industry of tobacco processing, contribute greatly to the economy of the prefecture

•Prefecture of Xanthi: The prefecture has a developed industrial zone, with sugar factories, tobacco factories, flour industries and textile factories

•Prefecture of Rodophe: An industrial zone expands to the east of Komotini with fodder factories, food and clothes industries, aluminum industry, while further to the east there is a timber industry and a thermal power station. The International Exhibition Centre of East Macedonia and Thrace is located in the industrial area.

Mineral wealth and significant resources

Eastern Macedonia-Thrace is known, from the ancient years, for its rich mineral wealth: •In the prefecture of Drama the marble quarries are among the largest and most developed in Greece. Marble is exported to Arab countries, , USA and Japan. Moreover, there are important mineral resources of manganese at the foot of Mt Phalakro, uranium deposits and industrial minerals in and a lignite field has been recently located in Mavrolefki. The subsoil of the prefecture contains also significant resources of industrial minerals, lignite deposits and turf, mainly in the flat land of the south •The subsoil of the prefecture of Kavala is rich in iron ore (in Thassos) and in marble (near the village Limnias) •The subsoil of the prefecture of Xanthi and Rhodope is rich in mineral wealth (marble, granite, graphite, geothermal field)

Investment opportunities: Manufacturing sector

A widespread network of industrial areas that provide the required infrastructure for the development of new and existing companies Unique opportunities for the creation of clusters of companies not only in Greece but also in the bordering countries, which could provide the cost competitive advantage Very rich subsoil of the Region that provides mineral reserves in gold, copper, silver, etc Marble quarries are among the largest and most developed in Greece Strong industry of tobacco processing Incentives of the New Development Law L.4399/2016

Renewable Energy Sources Renewable Energy Sources – Unexploited Capacity

Region of Eastern Macedonia -Thrace has unexploited capacity in Wind energy and Geothermal production As shown in the attached Maps the potential is tremendous. Solar energy capacity Wind energy capacity Investment opportunities in Greece: RES National Targets and Performance

RES technology Target 2020 Capacity 2016

Wind 7500 2047,17 Solar (PV’s) 4200 2093,52 Small Hydro 350 223,18 Even during the economic crisis in Greece, the RES Biomass 350 57,68 sector was one of the growing economic sectors Geothermal 120 0 where investments were made and employment was created Highly exploited area with growing capacity

The Greek RES market has grown Region of Eastern Macedonia-Thrace with a very strong pace. Total Wind Parks: 304,35 MW installed capacity stood at 1,06 GW in 2008 and 4,6 GW in2015, Small Hydro: 3,03 MW 334% increase within the last 7 Biomass: 0,80 MW years! Geothermal: 36,15 MW PV’s: 214,86 MW

Source: www.lagie.gr Food & Agriculture

Food & Beverage: An overview (I)

Key Area Products…and some unique characteristics

• Prefecture of Drama: The economy of the prefecture relies mainly on agriculture ,in the plains of the southern part of the prefecture grains, cotton, tomatoes, tobacco, grapevines, fruits and vegetables are cultivated. The agriculture exploits to the fullest the water resources

• Prefecture of Evros: The economy of Evros relies mainly on agriculture grains, pulses, fruits and vegetables are cultivated, as well as the systematic cultivation of certain plants used in industry such as the sunflower and the sesame. Production of sugar canes supplies the sugar factory in north Evros and asparagus plant is systematically cultivated. Mulberry trees, almond trees, apple trees and pear trees are also cultivated, whereas in Samothrace trees grow

Food & Beverage: An overview (II)

Key Area Products…and some unique characteristics

• Prefecture of Kavala: Fish is exported and traded in markets throughout Greece and abroad. In agriculture , tobacco, is cultivated but also grains, rice, pulses, kiwi, cotton, grapes and vegetables. There are also olive groves, producing large quantities of olive oil, vineyards and cultivation of asparagus and rice

• Prefecture of Xanthi: The region of Xanthi produces the renowned aromatic tobacco, cotton, wheat, corn, kiwi and vegetables are also cultivated in the plain. In the Vistonic bay fish is abundant and in the lake of Porto Lagos there are fish farms. Xanthi is famous for the local sweets, such as carioca, soutzuk loukum, halvas, syrup sweets, etc

• Prefecture of Rhodope: Agriculture dominates the prefecture of Rhodope, cotton, tobacco, wheat, corn, sugar cane, sunflower, cherry, kiwi and vegetables are the basic agricultural products

Investment opportunities: Food & Beverage

Recent Developments/New Opportunities

• Rural Development Programme (RDP) 2014-2020 focuses mainly on strengthening farm viability and competitiveness, preserving and enhancing ecosystems and fostering the local development in rural areas. • Investments in wheat, tobacco, cotton, asparagus, potatoes, wine,rice and kiwi • Further Investments in livestock farming and fish farming • Demand for ecologically produced agricultural products rising world –wide

Leading Companies in Eastern Macedonia and Thrace

Source: ICAP Enterprise Greece

Enterprise Greece is the new, official agency of the Greek State, under the supervision of the Ministry for Economy and Development. Its mandate is to showcase Greece as an outstanding destination for investment and to promote the highly competitive products and services produced in Greece for export. Investment Trade

•Attracts, welcomes, promotes, supports and •Promotes the export of Greek products and retains investment in Greece services internationally through marketing, events, •Promotes Greece internationally as an attractive and trade centres investment destination •Supports Greek producers and service providers •Accepts applications, evaluates and supports with guidance, assistance, information and Greece’s Strategic Investment (Fast Track) projects resources to better reach international markets •Provides investors with the Investor Ombudsman •Connects Greek exporters and entrepreneurs with service potential partners around the world •Informs investors of Greece’s institutional, tax, •Organizes the presence of Greek companies at legal, and financial framework conferences, fora, exhibitions and trade shows in •Supports investors in accessing finance global markets • Partners with related organisations, domestic and •Hosts foreign delegations and visitors to Greece international, to promote Greece as an investment •Partners with related organisations, domestic and destination international, to promote Greece’s export market 109 Vasilissis Sophias Ave. Your partner for growth 115 21 , Greece T. 0030 210 33 55 700 F. 0030 210 32 42 079 E. [email protected]