Albania is a small country, just 28.748 square miles, which borders with Greece, Montenegro, Macedonia and Kosovo. Its population, according to the last census, is 2,911 million inhabitants (2017).
In the country, the population is predominantly young, with an average age of about 30 years, and the minimum monthly wages are just 22,000 lek, or 180 dollars a month. The country’s GDP stands at $ 11,301 per year. The country has a harmonized legislative system with that of the European Union and an Order that provides maximum protection to foreign investors.
Albania enjoys a fair network of bilateral treaties against double taxation. In particular, Albania has signed agreements with several countries, including: Italy, United Kingdom Poland, Romania, Malaysia, Hungary, Turkey, Czech Republic, Macedonia, Croatia, Switzerland, Malta, France, Bulgaria, Russia.
The establishment of a small business company, with 3 employees and an effective seat, is a basic administrative structure with an annual investment of less than $ 30,000. Getting thereby, the ability to distribute its products on all the richer EU markets. Thanks to special advantages that the European Union has granted to Albania for trade, with a view to launching procedures for participation in the Union.
In Albania, the main sectors in which to invest or export are the following:
Energy, Oil & Gas
The energy sector in Albania has been characterized by major changes in recent years, primarily by the restructuring of KESH (National Energy Producer Organization) through its fragmentation in some companies in the areas of production, transmission and distribution. In recent years, the market for concessions for the construction of new plants and the rehabilitation of existing ones has increased the interest of foreign investors in Albania. Albania has significant hydrocarbon resources and is predominantly equipped with a huge hydroelectric potential, estimated at 2000-2500 MW and second, in the Pan-European area, only to Norway and Switzerland. There are considerable opportunities for export to the country of know-how (design), electromechanical machinery for power generation and electrical equipment and software for plant management. As well as opportunities for the oil industry, especially equipment and spare parts, as well as modernization of industrial processes, communications, transport, environmental technologies and equipment.
Textile industry
Albania is one of the countries of the Mediterranean basin with a major manufacturing vocation for textiles. There are a lot of garment multinationals who relocate their textile production in the country and carry out such manufacturing under temporary import arrangements. The relocation opportunities in Albania of such activities, driven by a very low labor cost, each year attract many fason producers. The presence in Albania of a growing textile industry makes the market very interesting for operators interested in exporting their machines to the country.
Tourism sector
Albania has enormous potential to develop in the field of tourism, with its presence in the territory both of mountainous areas and of large coastal stretches from Montenegro to Greece. Tourism development in Albania is among the priorities declared by the Albanian Government.
The sector of Agriculture and food
Agriculture is an important sector for the Albanian economy, as it contributes about 20% to national GDP and supports a significant proportion of the population. However, the sector is in need of modernization, businesses are small and the agriculture-food industry is unorganized. Albania, having fertile soil, mild climate and massive water mass has all the ideal characteristics to become an important agricultural producer in the Balkan region. In addition, the cost of land is small, so you can invest profitably in this business segment. The Albanian market appreciates a lot of imported foodstuffs, so there are great business opportunities for operators interested in exporting these products to Albania.
Construction sector
In the coming years Albania needs to undertake major structural adjustment interventions. For this reason, most of the international funds are allocated to the construction sector.
Education and Training Sector
The Albanian population is young, and often does not receive a proper education and vocational training to enhance its potential. Also in the light of the needs of multinational companies that choose the country for their investments. For this reason, there are important investment opportunities for the operators concerned to start training and education centers in Albania.
Industry and crafts sector
Low labor costs and easy access to the EU markets make Albania interesting for the relocation of traditional handicrafts, furniture, woodworking, furnishings and carpentry. The country’s growing productivity in these sectors makes Albania interesting also for plant and machinery exporters.
The sector of services and call centers
The average age of the Albanian population is 30 years. And it has a widespread knowledge of foreign languages, especially in the most educated bands. This makes the country an ideal destination for all operators interested in delocalizing administrative services (data entry, administration), international marketing services, and call center services. The development of these activities is accompanied by export opportunities for foreign operators of IT and telecommunications equipment.
Investing in Albania is the cheapest way to access the EU markets.
The Prime Advisory Network is an international co-operation platform between Commercial and Legal Studies, present all over the world. Ask your trusted professional to contact us. We will evaluate together the best path to help you invest in Albania and export to Europe.