Transcript F oreig n I nvestor s A ssociatio n o f A lbania

Invest in ALBANIA
The Time is Now!
Foreign Investors Association of Albania
Where we are located
Location:South East Europe
Area: 28,000 sq.m
Population: 3.2 million
Avg Age : 31 yrs
Language: Albanian
Climate: Mediterranean & Continental
Temp Avg 6.80C-23.90C, Rainfall
Annual Avg 1371.6mm
Foreign Investors Association of Albania
Increasing Stability
Memberships….
World Trade Organization (WTO)
United Nations (UN)
International Monetary Fund (IMF)
European Bank for Reconstruction and Development
(EBRD)
Stabilization Association Agreement signed on 12 June
2006 (SAA)
North Atlantic Treaty Organization membership to be
signed (NATO) in October 2007
Foreign Investors Association of Albania
Macroeconomic at a Glance
Economic growth 6%
GDP per capita 2.615 USD
Inflation 2.2%
Budget deficit 4.9% of GDP
Stable currency 124 lek = 1 Euro, 95 lek = 1 USD
(2007)
The unemployment at the end of 2006 reached
13.9%
High export growth rate, with the domination of
imports in Foreign Trade (75 % of total volume of
Export-Import)
Foreign Investors Association of Albania
Infrastructure
Albania a natural crossroad for major transit corridors in Europe
Main Government Priorities:
Pan European corridor VIII
Durrës-Kukës-Morinë road linked to corridor VII will be ended
2009
North-Central road (Hani Hotit-Shkodër-Gjirokastër-Kakavijë)
Map of Corridor VIII Varna (Bulgaria) – Durrës (Albania)
Source: Ministry of Public Affairs, Transport and Telecommunication, 2006
Foreign Investors Association of Albania
Market Access
Albania is a gateway of the
SEE Free Trade Area- duty free
access to 55 mil. People
Flight time from the
Albanian capital, Tirana to
major European cities
approximately within 2 hours
Ports - The main ports are
Durresi, Vlora, Shengjini and
Saranda.
Foreign Investors Association of Albania
A large majority of trade flows are
still geared to the EU countries
Imports from EU in 2004 as % of
total
Albania*
BiH
68.7
54
Exports to EU in 2004 as % of
total
Albania*
BiH
89.6
55
Bulgaria
54.1
Bulgaria
58.2
Croatia
69.5
Croatia
64.6
Macedonia
47.2
Macedonia
56.4
Moldova
32.8
Moldova
30.1
Montenegro
43.7
Montenegro
48.4
Romania
76.4
Romania
82.6
Serbia
50.2
Serbia
54.5
SEE AVERAGE
64
SEE AVERAGE
70
Foreign Investors Association of Albania
Financial Sector
15 Foreign Banks
National Commercial Bank (BKT), ProCredit Bank (Germany),
Raiffeisen Bank, American Bank of Albania, Emporiki Bank, Credins,
Banca Italiana di Sviluppo, Alpha Bank, International Commercial
Bank, National Bank of Greece, First Investment Bank, Banka
Popullore etc
International Financial Institutions which co-finance
private and public sector projects: EBRD, IFC, WB…
Investment Protection:
MIGA- World Bank, OPIC, Exim Bank, OECD, SACE, etc. 33 bilateral
agreement
Foreign Investors Association of Albania
Valuable Human Resources
Multilingual Work Force
Speaking Foreign Languages
N umber of St udent s E nt er i ng t he U ni ver si t y
55%
74%
74%
100%
Technology
72
Customer service
77
Sales marketing
76
Finance
75
Legal
0%
Senior management
2002- 03
2003- 04
2004- 05
Administration
0%
81
27
79
47
85
30
83
77
20
83
82
60
93
66
20%
Italian
25
66
40%
60%
English
80%
0
100%
Other
Source: UNDP in Albania
Foreign Investors Association of Albania
Liberal FDI Legal Framework
No limitation on the percentage share of foreign participation in
companies - 100 percent foreign ownership is possible
No prior government authorization is needed and no sector is closed to
foreign investment.
Foreign investment may not be expropriated or nationalized directly or
indirectly,
Albania's tax system also does not discriminate against foreign
investors
Foreign investors have the right to expatriate all funds and contribution
in kind of investments.
Most favorable treatment according to international agreements is also
provided
Foreign Investors Association of Albania
Tax Regime
Government Reforms
Tax on Profits (from 1
st
January 2008
)
Tax on Personal Revenues
(from Sept
1st
10 %
From 0% to 10%
2007)
V.A.T
20%
Dividends, Interest, Royalties
from patents
10%
Social and Health Insurance
-Employee
-Employer
31.2 %
20%
11.2%
Foreign Investors Association of Albania
FDI Track Record
FDI by sectors of economy
10%
Other
Real estate, renting
ICT etc
4%
Transportation, storage.
and communication
5%
35%
Wholesale and retail
8%
Construction
38%
Manufacturing industry
450
FDI by Country of Origin
(2005)
400
400
FDI Track Record
(1995-2006) by mln USD
350
341
300
245
250
China
207.3
200
178
143
150
100
90.1
0
USA
2.40%
Turkey
3.40%
135
70
47.5
50
2.40%
45
41.2
25.90%
Greece
51.40%
Italy
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Foreign Investors Association of Albania
Improving the business
environment - new opportunities
Remove of Administrative Barriers
Government Achievement, policies etc
Concession
Hydropower Plants, etc
Draft-Law “On Incentives”
Initiative “Albania 1 Euro”
Industrial Parks and Free Zones
Ongoing implementation of the FTA
EU & Balkans
 SA Trade Liberalisation
– late October- November 2006
Foreign Investors Association of Albania
Why Foreign companies should
invest in Albania
Political Stability and economic growth
Historical and cultural linkages
Geographical proximity
Easy access and crossroad to EU markets
Extensive language skills
Available skilled labour force
Total labour costs lower than comparable
countries
Pre accession Agreement
Adaptable and flexible workforce
Lower costs of transport
Foreign Investors Association of Albania
Investment opportunities
Investment Opportunities in Specific Sectors
– Tourism and Infrastructure
– Mining (chromium) and oil extraction: export oriented
– Utilities: hydropower, electricity and water service sectors are
still in the process of privatization
– Manufacturing: textile and garments, shoes and leather, agroprocessing
– Financial services & Business support services : customer
contact centers, expert solution centers, data entry
– Agriculture
Privatization
Foreign Investors Association of Albania
Mineral resources as chrome, copper, nickel and coal
Limestone estimated to 130 million tons of marble and stone reserves
Oil and Gas estimated at more than 400 mln tons. Since 1928 extracted and produced 40 mln ton
Albania’s natural resources include its Mediterranean climate and location and unspoiled beaches, mountains,
lakes, rivers, history, culture
Foreign Investors Association of Albania
Tourism Sector
Coastline 450 km
GDP Contribution 4.7 % (2005)
Albanian Tourism Industry generated around
$1.9 billion in 2005, will grow to around $3.5
billion by 2015 *
2006-2015 travel and tourism demand expected
to grow in by 15.9 % per annum (in real terms) *
Governments New Strategy for Tourism
Development
Source: * World Travel and Tourism Council
Foreign Investors Association of Albania
The textile and garment sector
Lowest labor costs in Balkans and Eastern Europe
More than 100 foreign companies
Extensive tradition of garment production
Qualified and adaptable labour force
Application of modern technologies
Brand leaders
The most important share in Albanian exports
Foreign Investors Association of Albania
Service Sector
Service sector comprise 45.2%of GDP
The competitive advantages
– Multi-lingual workforce (Italian 70%, English)
• Availability of skilled staff (65% of the population 15 and 65 years of age)
– Lowest labour costs in Europe
• Compared to Eastern Europe, investors can save up to two-thirds of wage
costs and services wages in Albania are typically around one-fifth the level
of West European countries.
– High quality office space
– Advanced ICT infrastructure
• Multiple ISPs are innovative and offer fast DSL connections. GSM service
full coverage
Foreign Investors Association of Albania
Footwear and Leather
Fastest growth in exports worldwide
6th largest exporter of shoe uppers worldwide
Lowest labour costs in the Balkans and Eastern
Europe
Over 20,000 skilled workers
100 shoe and leather companies
Turnaround your design and export in just 24 hours
55 million costumer market, next door
Foreign Investors Association of Albania
Infrastructure
Ministry of Transport and Telecommunication released:
-List of tenders for construction of roads, bridges across the
country
Open to international tenders are roads :
Durres –FYROM - Bulgaria which will link:
- North to major European corridors
- South to Istanbul
Foreign Investors Association of Albania
Privatization Opportunities in
Albania
In Energy
The privatization of the power distribution sector at the Albanian
Electro-energetic Corporate (KESH s. a.), and generation sector
In Hydrocarbons
The privatization of ARMO sh.a. through concession form
The restructuring and privatization of Albpetrol s. a
The privatization of the Oil Mechanic Factory s. a in Kuçove
In Water Supply and Transportation
Mother Theresa International Airport is given in concession for a 20
years period to the Consortium “Airport Partners”
Durres Port cereal and grain terminal concession; Trainferry Terminal
Concession
Water supply systems in Berat and Kuçove
Insurance
INSIG – the only one state owned insurance company in the market. It
operates in Albania, Kosovo and in Macedonia for the non-life
insurance. 39% of shares owned by IFC and EBRD
Foreign Investors Association of Albania
Welcome to Albania
Foreign Investors Association of Albania