GDP growth 2007 – 2012 (in mm EUR)
5,000.00
4,000.00 2.9%
4.5% 3,000.00
3.2%
3.5% 2,000.00 7.2%
8.3%
1,000.00
0.00 2007 2008 2009 2010 2011 2012 Source: Central Bank of Kosovo and Statistical Agency of Kosovo Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
FDI 2007 – 2012 by Country (in mm EUR)
374.95 369.7
292.24
210.76 174.34 148.86 143.26
84.79 81.53 63.14
Source: Central Bank of Kosovo
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
FDI 2012 by Sectors (as % of total FDI)
Other 5% Financial Mining Services 5% 10%
Construction 21% Transport & Telecommunication 8%
Trade Services, Cleaning, Collection 4%
Production 12% Real Estate 32%
0%
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Why invest in Kosovo?
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Liberal Trade Regime
• CEFTA 2007 • Central European Free Trade Agreement Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia • Population: 21 million • GDP (2012): EUR 150 billion
• Autonomous Trade Preferences with the European Union • Unlimited duty-free access to the EU market, renewed 2011-2015
• Generalized System of Preferences with the US • Preferential duty-free entry for about 4,800 products
• Trade Preferences with: Japan & Norway and ongoing with Turkey
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Lowest Operational Costs in Europe
• Corporate profit tax: 10% • Income tax 0 -10 % (Progressive) • €0 – 80 = 0% • €80 – 240 = 4% • €240 – 450 = 8% • €450+ = 10% • Mandatory pension contribution: 5% • Value Added Tax: 16 % • Tax on Dividends: 0% • Cost of electricity at 5.5 – 10 EUR cents per kWh (22 cents in EU) • Average Wage: 300 EUR/month (3,103 EUR in Western Europe)
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
A Good Strategic Location
• Located in the heart of Balkans, Kosovo offers easy access to EU via air, road, railway and three sea ports: Thessaloniki, Greece Durres, Albania Bar, Montenegro
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Legislation and Agreements
• Legal system completely re-built since 1999, largely EU-compatible • Law on Foreign Investments requires equal treatment for foreign and domestic investors • Bilateral Agreements on Investment Protection and Promotion: • Protection and Security, • Free Transfer of Funds, • Free Repatriation of Profits and Dividends, • Protection against Retroactive Application of Laws, • Protection against Expropriation • Land available on several business parks across Kosovo
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Business Environment in Kosovo
Kosovo is the 5th most dynamic reformer in the WORLD! – World Bank
In 2014, Kosovo improved its ranking in World Bank Doing Business Index by 12 places, leaving behind almost all regional countries.
Source: World Bank Doing Business Index 2013
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Good Investment Opportunities
First Core Target Sectors • IT - Business Process Outsourcing (BPO) and Customer Support Centers • Agribusiness – Food Processing and Packaging • Mining, Minerals • Renewable Energy • Textile and Leather Processing • Wood and Furniture • Metal Processing
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Good Investment Opportunities - PAK
Many state-owned enterprises are going through the privatization process bringing many opportunities to foreign investors. • Metaliku Metal Processing Complex – 25 ha • Ereniku Wine Cellar - 3 ha • Virxhinia - Tobacco Processing Plant – 8.1 ha and 38K m² covered • Bauxite Mining – Kosovo Bauxite – 220 ha • Betonjerka - Construction Material production – 5.3 ha • Real Estate – Agricultural Land – 10ha – 50ha • Fapol – Polyester Columns – 7Ha + Customs Terminal • Vreshtaria Vineyards – 50ha – 130ha
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Good Investment Opportunities - PPP
• Route 6: Macedonia – Kosovo • 4-lane 80 km motorway that connects Prishtina to Thessaloniki port with 25,000 vehicles per day • Estimated transaction value: EUR 600 million • Contractual Model: Public Contract
• Installation of Tolling Plazas in Route 7: Albania – Kosovo • Maintenance of 107 km motorway • Concession of all rights on highway including advertising • PPP Model: Operation Concession Contract (Tolls)
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Good Investment Opportunities - PPP
• Building of Service Stations in Route 7: Albania – Kosovo • Building and Operation of Six Service Areas • Exclusivity over the whole stretch of highway • Wide range of services: Gas Stations, restaurants, parking, and hotels • Public Private Partnerships Model: Build Operate Transfer (BOT) • Investment Value: 36 Million Euro • Kosovo Land Fill Management • Investment Project to Increase and Modernize Land Fill Locations throughout Kosovo - 5 Land Fills with over 180,000 tones of solid waste • Donor interest for financial support • Investment Value – ~5 Million EUR
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Good Investment Opportunities - PPP
Municipalities offer great PPP projects as well to be developed during 2014
Municipality Project Municipality Project Underground Parking - Municipality Parking & Commercial & Cinema Prishtina Prizren Building (BOT) (Multi-level, Under And Above Ground) Underground Parking - Grand Hotel Prishtina PARKING ( Above Ground) (BOT) Prizren Underground Parking - Prishtina Commercial/Recreational Complex Prishtina Gjilan University (BOT) Peja Urban Transport Gjilan Waste Collection And Managmenet Construction Of Recreational, Cultural And Suhareke Solid Waste Collection Ferizaj Sports Center Trade Center At The Marketplace With Prishtina Urban Transport Ferizaj Underground Parking Fushe Waste Collection And Sorting Ferizaj Waste Water Treatment Kosova Shterpce Waste Collection Prizren Reconstruction of Marketplace
Mitrovica Waste Collection And Sorting Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Gjakova Airport – Free Economic Zone
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Gjakova Airport – Free Economic Zone
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Gjakova Airport – Free Economic Zone
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Gjakova Airport – Free Economic Zone
• In March 2013, the Government of Kosovo has passed the Law on Economic Zones with the aim to set up Free Economic Zones which will be developed based on the most successful models in the world. The objective will be economic development, increase of employment, increase of exports and transfer of know-how from abroad. • The Free Economic Zone in Gjakova will allow international companies to enjoy special privileges while products are produced for exports. • It will target industries that manufacture high-value products where cargo transportation is a viable option
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Mission: to attract new investments into Kosovo, to advise and help potential investors, to retain and grow existing foreign investment, and to promote exports.
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
How IPAK can help you?
• Provide comprehensive advice and support to help you obtain all necessary approvals to enable a fast start-up • Registering your business • Getting licenses and permits necessary to start your operation • Arrange meetings with all local and central institutions • Arrange visits and meetings with any business of your interest • Help you to identify suitable property options to accommodate your operation • We have several business parks and business incubators where you can start your operations • Provide information on different projects and partners with whom you can collaborate • Provide industry specific information
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
How IPAK can help you?
• Provide comprehensive advice and support to export out of Kosovo • Promote your products abroad • Assists financially and organizationally to participate in different fairs • Arrange visits and meetings with many foreign businesses of your interest • Help you to improve your products’ presence abroad • Find international partners for your products • Keep you up-to-date with news and relevant facts and figures • After-care service
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Locations Database – www.invest-ks.org
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry
Contact Information
Ministry of Trade and Industry Investment Promotion Agency of Kosovo
Tel: +381 38 200 36 585 www.invest-ks.org www.facebook.com/InvestKosovo
Government of the Republic of Kosovo Investment Promotion Agency of Kosovo Ministry of Trade & Industry