(e)estimate (f)forecast

Source: Cofacerating

Predominant sources of FDI in Albania are Italy and Greece, with roughly 48% and 34%, respectively. These two countries are also Albania’s major trading partners for both imports and exports. Currently, foreign investments are concentrated in the country's key commercial districts: the capital Tirana and the main cargo port Durres. 

Albania has a small but growing economy that is making the transition to a free market economy while simultaneously dealing with social and political integration, economic development, infrastructure and development and the improvement of the business environment. 

Albania has made considerable progress in achieving macroeconomic stability and financial sustainability. Key elements underlying this performance include enhanced fiscal management, widespread structural reforms, and the Bank of Albania’ s focus on keeping inflation low.

The country has undergone an extensive process of large-scale privatization, including the privatization of telephony, energy, mining and oil companies but also infrastructure and transportation, roads, port and railway services. Privatization of most state-owned small and medium-sized enterprises (SMEs) has been completed.

Leather goods is one of Albania’s most promising sectors. The production of leather and shoes constitutes one of Albania’s most economically and socially important sectors. Export volume and growth are dominated by foreign-owned factories, which have benefited from modern management and production techniques implemented since the late 1990s, as well as from strong business networks in Italy.

Agribusiness and food and beverages processing are also significant industries. Companies in Albania, which are mostly in private hands, produce canned and bottled fruits and vegetables, and wine for export.  Albania possesses high quality raw material in several subsectors, including herbs and spices, as well as fish processing.  In overall operating costs for this sector, Albania ranks lowest among the Western Balkan countries, the Czech Republic, Hungary, and Slovakia.

Visit the Web site of the Albanian Foreign Investment Promotion Agency for information on investment opportunities in other sectors, including energy and infrastructure.