Albania Calls
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1 Country profile Potential p. 9 p. 24 investment sectors Economic trade Economic zones p. 10 integration p. 38 Top 10 reasons to Potential projects p. 12 invest in Albania p. 42 Investment and Investors already p. 14 business climate p. 47 in Albania Macro-economic AIDA’s business card p. 22 indicators p. 48 Albania is opening a new chapter on foreign investments. As a result the Albanian Government is fully committed to be a partner to investors. A determined and reliable partner, Over the last 22 years, Albania has experienced a difficult ready to assist, listen, and above all to help overcome all the transition shifting from a centrally planned economy to an obstacles to a free and competitive market. Today we are fully open-market economy. During the transition process, Albania aware that in order for the economy to make a quality jump, has encountered many successes and hardships. astrong partnership between the public and private sector must be established, to address the mistakes of the past and With the EU ambition in mind, the Government of Albania to build a new future together. has committed itself to create a more competitive investment climate, by undertaking qualitative changes in procedures and Over the next two generations Albanian income per capita will legislation, and undertaking the structural reforms needed to merge with that of the EU. This will mean much greater rates reshape the business climate and environment. of growth and returns than the EU average. The foundation of this successful evolution will be the establishment of a new As a result of this, the factors of economic growth in Albania government - business relationship, and a new level of active are changing focus. The new economic model of the country cooperation. will focus on more productive inputs of economic growth, replacing the unproductive ones over the next few years. Today Albania is more open than ever to investors and Our midterm objective is to return to 5-6% annualized rates this readiness will determine the economic success of the of economic growth, with a much more diversified economy country. Namely for this reason, today more than ever, we using the full potential of the country. want to invite you to discover why Albania is a country of opportunities. Foreign investment is a key factor for the new government. Not only because FDIs provide liquidity, employment and Arben Ahmetaj development to countries, but especially because they help raise performance level of economic sectors. Minister of Economic Development, Trade and Entrepreneurship 7 Montenegro MalesiMalesi TropojeTropoje e Madhe Kosovo HasHas PukePuke KukesKukes ShkoderShkoder LezheLezhe MirditeMirdite DibreDibre Shengjin KurbinKurbin MatMat KrujeKruje BulqizeBulqize Macedonia TiraneTirane DurresDurres LibrazhdLibrazhd KavajeKavaje ElbasanElbasan KucoveKucove LushnjeLushnje PogradecPogradec BeratBerat GramshGramsh DevollDevoll SkraparSkrapar FierFier KorceKorce KulonjeKulonje Mallakaster VloreVlore PermetPermet TepeleneTepelene DelvineDelvine GjirokasterGjirokaster Greece SarandeSarande 8 Country profile General Information Political System • 2 Surface area: 28,748 km • The Albanian government is a • Length of coastline: 316 km parliamentary republic • Capital city: Tirana • It’s President since 2010 is • Currency: Albanian Lek (ALL) HE Mr. Bujar Nishani • It’s Prime Minister since 2013 is HE Mr. Edi Rama SLOVENIA CROATIA ROMANIA BOSNJA SERBIA Location HERZEGOVINA Climate Time zone: GMT +1 hour • Albania has a mild climate with 270 MONTENEGRO KOSOVO • Situated in south-eastern Europe to 300 days of sun per annum. BULGARIA • MAQEDONIA Borders the Adriatic and Ionian Seas ADRIATIC SEA • Directly borders Greece, Macedonia, ITALY ALBANIA Montenegro and Kosovo GREECE TURKEY Population Natural Resources • Language: Albanian • Albania is a country that is rich in natural • Total population: 2.8 million (2012 resources data from INSTAT) • Key resources include petroleum, gas, • Median age: 31.2 years (2013 data bauxite, chromium, copper, iron ore, from CIA Fact book) nickel, salt and timber • Literacy rate: 96.8 % (2011 data from • It also has the potential to produce CIA Fact book) significant amounts of water, wind and solar energy 9 ECONOMIC TRADE INTEGRATION Albania benefits from extensive Free Trade Agreements with: IRELAND LITHUANIA - The EU UNITED KINGDOM - Central Europe (through CEFTA) BELARUS NETHERLAND - Europe (through EFTA) BELGIUM POLAND - Turkey GERMANY CZECH REPUBLIC UKRAINE This gives investors free access to over 600 million customers. FRANCE SWITZERLAND AUSTRIA MOLDOVA Albania is also a member of World Trade Organization (WTO) HUNGARY and applies WTO rules to all import licensing. SLOVANIA CROATIA ROMANIA BOSNIA SERBIA SPAIN MONTE PORTUGAL BULGARIA NEGRO KOSOVO MAQEDONIA ITALY 2300 KM 2800 KM 2300 KM 1700 KM 1200 KM 600 KM 230 KM ALBANIA GREECE TURKEY Top 10 reasons to invest in Albania SLOVENIA STRATEGIC LOCATION IN CROATIA FREE MARKET ACCESS 1 ROMANIA 2 SOUTH-EASTERN EUROPE • The Albanian economy is BOSNJA SERBIA HERZEGOVINA Albania has immediate access to completely open and characterized by fully liberalized trade markets in the Balkans and Europe MONTENEGRO KOSOVO • It is located at the heart of several • It is among the most resilient south- BULGARIA MAQEDONIA major transport corridors ADRIATIC SEA eastern European economies • It has immediate access to Pan ITALY ALBANIA • It was the only economy in the European corridor number VIII region that did not enter recession TURKEY • It is an entry gate to global markets GREECE during the global economic crisis through its four ports. BUSINESS–FRIENDLY 3 ENVIRONMENT • Albania provides tax benefits to investors in key strategic sectors • It also has an attractive incentives scheme for investors • There is an efficient online tax system • The country’s legal framework for business is fully compliant with EU legislation 4 ONE-STOP SHOP MODEL 5 LARGE SELECTION OF • Registration of a new business in INVESTMENT OPPORTUNITIES Albania only takes 24 hours Albania has a range of public-private • It only costs 100 Lek (<€1) investment opportunities • Albania also has fast and • It also has a range of opportunities in transparent business licensing stable and growing sectors such as: through its National Licensing •*Renewable energy, *Mining, *Tourism, Centre *Manufacturing, *Agriculture, *Transport & logistics, *ICT services 12 Top 10 reasons to invest in Albania 6 SUPPORTIVE FDI LEGAL 7 FAVOURABLE TAX SYSTEM FRAMEWORK • Albania’s corporate tax rate is only 15% • No prior government authorization is • The progressive personal tax rate is required for investments in Albania between 0%and23% for high earners • All sectors are open to foreign investors • Albania has double taxation treaties • Albania imposes no limitations or with over 30 countries restrictions on foreign companies • The tax system does not distinguish • There are no restrictions on profit between foreign and domestic and capital repatriation investors • Albania offers special state protection to all foreign investors 8 COMPETITIVE WORKFORCE • Albania has over 1 million well-educated, highly-motivated professionals • English, Italian and Greek are all widely spoken while French and German are taught at school • 57% of the population is under the age of 35 • Each year, more than 100,000 students enroll at university • Albania has one of the lowest minimum wages in the region at 157 Euros per month RAPIDLY IMPROVING A GLOBAL-RECOMMENDED 9 INFRASTRUCTURE 10 TOURIST DESTINATION • There has been significant investment • Albania was listed fourth on the in the infrastructure of the transport, New York Times’ “52 places to go telecommunication and energy in 2014” sectors • It was a top destination • Albania has well-developed, low- ‘Frommer’s Travel Guide’ in 2012 cost sea transportation facilities • It has also topped the Lonely • It also has direct delivery Planet’s annual list of top 10 places mechanisms to most EU countries to visit (2011) 13 INVESTMENT AND BUSINESS CLIMATE A SUPPORTIVE LEGAL FRAMEWORK ON FOREIGN INVESTMENT No prior government authorization is needed for foreign investments and no sector restrictions apply Albania: an increasingly free economic force In the Heritage Foundation’s 2014 Index of Economic Freedom, Albania’s Standard & Poor’s CreditWatch/Outlook Action score improved to 66.9 out of 100, making its economy the 54th freest Sovereign Credit Rating economy in the world. Its overall score increased as a result of clear Ratings improvements in its investment and trade freedom. The improvements mean that Albania is now ranked above 18 European countries with an overall “On April 11, 2014, Standard & score that is above the world average. Poor’s Ratings Services revised 2014 its outlook on the Republic 2013 of Albania to stable from B/STABLE/B negative.” B/NEGATIVE/B 54 61 64 68 70 86 87 119 140 Albania Bulgaria Turkey Montenegro France Italy Croatia Greece Russia Level of economic freedom Doing business 2014 Globally, Albania has a good performance and is ranked 14th out of 189 economies related to investor’s protection ALBANIA 78.1 87.5 92.7 75.6 80 75 70 Business Trade Fiscal Government Monetary Investment Financial BOSNIA & HERZEGOVINA 115 Freedom Freedom Freedom Spending Freedom Freedom Freedom KOSOVO USA 89.2 86.8 65.8 48.1 75.4 70 70 98 115 FRANCE 79.9 82.8 48.4 5.6 76.1 70 70 SERBIA 80 RUSSIA 70 74.6 85.6 61.5 69.4 25 30 MONTENEGRO 34 SERBIA 59.3 77 83.1 38.6 66.9 75 50 GREECE 75.8 82.8 65.9 19.2 76.3 60 50 MACEDONIA 16 MACEDONIA 81 85.9 91.4 70.7 83.5 60 60 ALBANIA 14 TURKEY 67.6 84.5 77.5 63.5 71.8 70 60 BOSNIA AND 55.5 86.9 82.9 27.4 80.1 75 60 HERZEGOVINA 100-80 79.9-70 69.9-60 59.9-50 49.9-0 N/A Source: 2014 Index of Economic Freedom. www.heritage.org/index/country/albania Source: Doing Business 2014 16 INVESTMENT CLIMATE For investors, Albania is a highly attractive,growingmarket with stable economic, political and legal structures, as well as a liberalized economic framework and good conditions for doing business.