Kosovo – Basic Facts
Area:
Population:
Capital:
Main Ethnic Groups:
Diaspora:
Languages:
Currency:
GDP 2010:
Major Markets:
Borders with:
Government of the
Republic of Kosovo
Ministry of Trade & Industry
10,887 km2
1.8 million
Prishtina (population 400K)
Albanian 90%, Serb 5%, others 5%
Approximately 800,000 live abroad
Albanian, Serbian and English
Euro
€4.2 billion (€ 2,320 per capita)
EU, CEFTA
Albania, Macedonia, Montenegro and Serbia
Investment Promotion Agency of Kosovo
GDP growth 2006 – 2011 (in EUR)
4,500
4,177
3,967
4,000
3,724
3,792
3,464
3,500
3,182
3,000
4.0%
5.0%
5.4%
3.8%
4.6%
5.3%
2006
2007
2008
2009
2010
2011
2,500
2,000
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
FDI growth 2006 – 2011 (in mm EUR)
500
440
450
395.0
400
366
366.0
350
300
285
266
250
200
4.0%
65.4%
-16.8%
-22.0%
28.0%
8.0%
2006
2007
2008
2009
2010
2011
150
100
50
-
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
FDI 2007 – 2011 by Country (in mm EUR)
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
FDI 2011 by Sectors (as % of total FDI)
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Why invest in Kosovo?
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Liberal Trade Regime
• CEFTA 2007
• Central European Free Trade Agreement
Albania, Bosnia and Herzegovina, Croatia, Kosovo,
Macedonia, Moldova, Montenegro, Serbia
• Population: 32 million
• GDP (2009): €180 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
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
A Good Strategic Location
Regional Center
Distance from Prishtina
(km)
Skopje
85
Sofia
270
Thessaloniki (port city)
315
Tirana
260
Durres (port city)
260
Shengjin Port
230
Belgrade
360
Sarajevo
390
Bar (port city)
350
Vienna
930
Budapest
732
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Youngest Population in Europe
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Average age – 27 years old
15,000 new university graduates every year (70,000 students)
University of Prishtina operates under bologna system
Several American and British Universities
English and German Languages are widely used
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Very Low Taxes and Wages
• Corporate profit tax: 10%
• Income tax 0 -10 % (Progressive)
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•
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•
€0 – 80
€80 – 240
€240 – 450
€450+
= 0%
= 4%
= 8%
= 10%
• Mandatory pension contribution: 5%
• Value Added Tax: 16 %
• Customs: 0% import tariff on some raw materials and a range of
capital and intermediary goods.
• Average Wage: 280 EUR/month
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Legislation and Agreements
• Legal system completely re-built since 1999, largely EUcompatible
• 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
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Business Environment in Kosovo
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Euro – official currency
Over 60,000 active SMEs
Sound banking system
Free Land for Foreign Investors
Improving Business Environment reforms in place
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Business Registration in one day
Chartered Capital is zero
Municipality Permit is eliminated
Administrative Procedures for export and import are reduced by 70%
50% of oil related licenses and many other licenses have been eliminated
New Fiscal Package
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Economic Stability
Kosovo has the lowest level of debt in Europe, mainly due to its
conservative fiscal policy
Austria
71.3%
Albania
57.9%
B&H
48.7%
Serbia
40.2%
Macedonia
25.8%
Bulgaria
Kosovo
0.0%
19.9%
5.8%
10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Source: Economist, IMF
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Sovereign Debt as
% of GDP in 2011
Good Investment Opportunities
First Core Target Sectors
• Business Process Outsourcing (BPO)
• Automotive Components
• Electronic Components (EMS) – Electronic Manufacturing Services
• Agribusiness – Food Processing and Packaging
Second Core Target Sectors
• Mining and Energy
• Wood and Metal Processing
• Decorative Stone
• Tourism – New Brezovica Ski Resort
• Construction
• Textile
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Good Investment Opportunities - PTK
Privatization of the Post and Telecommunication of Kosovo (PTK)
 Low market penetration that allows for significant growth
 Company is debt-free and owns 70% of market share in mobile and
94.5% in fixed telephony
 High profitability
 Revenue of EUR 161 million
 EBITDA margin of 46% in 2011 or about EUR 74 million
 Net profit of EUR 48 million
 Modern technical infrastructure
 Lazard Freres and Raiffeisen Investment selected as transaction advisor
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Good Investment Opportunities
Industrial Battery Factory L.L.C.
• Located in Industrial Zone of Peja town on around 14.18 hectares with road and
rail access and a factory floor area of 18,900 m2
• Two production lines.
• Machines and tools in good working order. Currently underutilized.
• Dedicated willing workforce with technical know-how
Hotel Onix Banja e Pejes and Health Spa L.L.C
• Situated on 26 hectares of land with built up floor area of 38,000 m² in 4 hotels
and other facilities
• Unique water spring mineral composition and disease treatment on the West
Balkans
• Opportunity to develop the Spa as a country club and Health Spa with restaurants,
sports centres and swimming pool
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Survey: Investing in Kosovo - Advantages
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
Why Budapest
It has a strategic location, in the very heart of
Europe
Offers rich networking opportunities
Over 130 foreign companies in Hungary, 69%
of them had a regional center, and 44% had
already in Budapest
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
How can the Embassy of the Republic of
Kosovo in Hungary help you?
• Provide comprehensive information on relevant actors involved in
promotion of investments
• Facilitate visits and meetings with relevant actors in involved in
promotion of investments, and with businesses in Kosovo
• Contact:
Embassy of the Republic of Kosovo in Hungary
Szabadsag ter 7, 1054 Bp.
Tel. +36 1 688 7872
Fax. +36 1 688 787
Contact person:
Mr. Delfin Pllana, Minister-Counselor
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo
THANK YOU FOR YOUR ATTENTION!
Government of the
Republic of Kosovo
Ministry of Trade & Industry
Investment Promotion Agency of Kosovo