2. Macroeconomic Stability
• The Euro is the official currency since 2002
• Currency risk eliminated
• Financial discipline introduced
• Low inflation – averaged 3.5% over past 4 years
• Rapidly maturing economy
• Strong private sector growth and increasing FDI
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3. Why invest in Kosovo?
• Free Access to a 520 Million Consumer Market
• A Good Strategic Location
• Lowest Cost Country within the Euro Currency Zone
• Youngest Population in Europe
• Readily Available and Motivated Workforce
• Very Low Taxes
• A Government Highly Supportive of Foreign Direct Investment (FDI)
• Modern EU-compatible Legislative System
• Sound Banking System
• Good Investment Opportunities
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4. Free Access to 520 Million
Consumer Market
• Liberal free market trade regime
• Duty-free access to EU market
• Free trade agreement within CEFTA
• Total duty-free access to more than 520 million consumers
• General System of Preferences (GSP) status with US
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6. Lowest Cost Country within
Euro Currency Zone
• Monthly average wage €270 (2009)
• Lower transaction costs
• Financial discipline
• Very low inflation
• Low social contributions on wages
• One of easiest places in world to hire labour
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7. Youngest Population
in Europe
• 70% of population under age of 35
• 50% below 25
• Albanian and Serbian official languages
• English is de-facto third language
• Multilingual
• Flexible
• Highly educated
• Open, friendly and EU-oriented
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8. Very Low Taxes
• Corporate income tax 10%
• Personal income tax rates vary from 0-10%
• Customs duty on imports 10%
• Reduced rate of 0% on capital goods and agricultural production inputs
• VAT rate 16%
• 0% VAT and customs duty on exports
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9. A Government Highly
Supportive of FDI
• Attracting FDI is top priority
• IPAK is responsible government agency
• Simple and quick business registration procedures
• High level of investor protection Protection and Security
- Free Transfer of Funds
- Free Repatriation of Profits and Dividends
- Protection against Retroactive Application of Laws
- Prohibition of favoritism and discrimination
- Protection against expropriation
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10. Sound Banking System
• Central Bank of Kosovo
• Regulates banking and insurance sectors
• A number of commercial private banks
• Strong presence of major foreign banks
• Competitive and positive on major financial indicators
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11. Good Investment
Opportunities
• Food processing
• Mining and Energy
• Wood Processing
• Decorative Stone
• Metals and Metal Processing
• Clothing and Textiles
• Information and Communications Technology (ICT)
• Tourism
• Construction
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12. Food Processing
• Traditionally, one of Kosovo’s strongest sectors
• Half of land is agricultural with fertile, nutrient-rich soils
• Low reliance on artificial inputs, ensuring integrity of the produce
• Good investment opportunities especially in:
- Dairy Products
- Fruit and Vegetables
- Wine production
- Meat Products
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13. Energy and Mining
• Lignite reserves about 14
billion tones
• One add. 1000 MW
capacity, GDP increase of
17%
• Demand for investments
in new coalmines
• Huge deposits of lead
and zinc ( Trepça mines)
• Gold and silver
• Ferronickel and
magnesium
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14. Metals and Metal Processing
• Long history in metals and metal processing
• Large, previously socially-owned enterprises almost all disappeared
• New SMEs tapping skill base in more western style of production
• Wide range of metal products currently being exported to Europe
• Opportunities to invest in European standards of production at highly
competitive prices
• Local companies interested in collaboration with foreign companies for
joint ventures, sub-contract or under-licence manufacture
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15. Information Communications
Technology
• Kosovo’s ICT sector has grown rapidly in last 10 years
• High quality products and services with latest technologies
• Good annual supply of well-educated young graduates – 400-500 ICT
• Highly competitive costs – software engineer with 2 years experience
costs less than 800 euros per month
• Opportunities for partnership arrangements for outsourced software
development or customer support services for the region
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17. Construction
• Young, newly independent country with enormous demand for new
infrastructure especially in:
- Housing
- Roads
- Rail
- Schools
- Tourism and Leisure
• Government plans for major infrastructure development
• Opportunities for foreign investors in Public-Private Partnership projects
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19. Privatization of SOE-s
• Run by Kosovo Privatization Agency
• Nearly 500 SOEs to be privatized
• 41 rounds past, nearly 300 SOEs
already privatized
• Mostly agricultural companies, trade,
metal processing, textile
• Possibility of concessions or leases
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20. Industrial Park (Drenas)
• 24 Hectares of Land
• 8 km from Prishtina International Airport
• 21 km from Prishtina
• Adjacent to Prishtina/Skopje Highway
• Easy access to power, water, telecommunications etc
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21. IPAK’s Message to
Foreign Investors
• We will provide you with comprehensive advice and support from
professionals
• We will help you to identify suitable property options to accommodate
your operation
• We will help you to obtain all necessary approvals to enable a fast start-
up
• If you wish, we will provide you with introductions to potentially suitable
partners with whom you can collaborate
• We will provide you with an efficient and professional service
• We fully respect your need for confidentiality and your information will
be treated with the strictest confidence by our staff.
• Please visit our website www.invest-ks.org for further information.
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22. Investment Promotion Agency of Kosovo
Tel & Fax: +381 38 200 36542
web: www.invest-ks.org
email: info@invest-ks.org
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