Invest in Albania Tirana, 27. October 2015 Page 1 Agency Profile - - PowerPoint PPT Presentation

Investment Forum – Hong Kong

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Invest in Albania

Tirana, 27. October 2015

Agency Profile

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AIDA - Albanian Investment Development Agency

• Principal partner for foreign investors
• Direct contacts with all public & private sector key deciders
• Project management assistance
• Direct support by the Minister of Economic Development, Trade

Tourism and Entrepreneurship and Prime Minister.

Country Profile

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Located in the center of Southeastern Europe at major crossroads. Neighboring Countries: Montenegro, Kosovo, Macedonia & Greece. Surface: 28,748 km² (Belgium: 30,355 km²) Population: 2.9 million (average age ca. 31.6 years) Coastline: 316 km Climate: mild 270-300 sunny days

• Int. Airport:

Tirana Main Ports: Durres, Saranda, Vlora, Shengjin Natural Resources: petroleum, gas, bauxite, chromite, copper, iron, nickel, salt & timber Huge potential to produce hydro, solar & wind energy

Economic Profile

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• Highest economic growth in the region (World Bank Report)
• 2.1% in 2014
• 3.0% in 2015 (forecast)
• Low inflation rate, stable at 1.6%-1.9% during the last

10 years

• Solid Exchange Rate at LEK 140.0 = EUR 1.0
• S&P-rating improved twice from “B-” to “B stable/B

positive”

CEFTA EU/EFTA WTO

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• Since 2014 a EU- Candidate
• 40-56 hrs. trucking time to major European cities
• CEFTA is a market of 26 million customers
• 7 million Albanian speaking people within CEFTA
• Member of WTO
• Trade agreements with many other countries and USA

Free trade with 620 million customers in

• CEFTA
• EU/EFTA
• Turkey

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Economic Trade Integration

Positive Investment Climate

• Friendly Business Environment
• 100% profit repatriation
• Simplified taxation procedures & competitive low tax rates
• Competitive Human Capital
• Several Sectorial Investment Incentives
• Export-oriented growth, 21% annual growth for the past 5 years

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Law 55/2015 on SI

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• Facilitate administrative procedures and reduce legislative

complexity for strategic investments

• Due diligence procedure (AIDA completes the due diligence

within 30 days of the submission of an application)

• Support with the necessary infrastructure and sectorial studies
• Provision of fixed assets to develop and implement strategic

investment projects

• BOSS - Business One Stop Shop

COMPETITIVE WAGES

Average monthly wage in EUR, 2014

• The average monthly wage of Albanian workers is

as low as 266 euros

Monthly minimum wages in EUR, 2015

• According to the latest minimum wage law of

Albania, it is the lowest in the region

288 157 164 194 214 236 235 425

Bulgaria Macedonia Bosnia and Herz. Romania Montenegro Turkey Serbia Albania Serbia Montenegro Turkey Bosnia and Herz. Romania Macedonia Bulgaria Albania

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Tax & Customs

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• Corporate tax rate - 15 %
• VAT – 20%
• Personal tax rate from 0 - 23 %
• Favorable tax system for Small Businesses - 7.5%
• Treaties for the Avoidance of Double Taxation with over 30

countries

GDP total in 2014: USD 15.3 billion

Steadily growing sectors

Agriculture 21.7% Construction 12.0% Transport 2.8% Other services 30.2% Industry 15.3%

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Trade Dynamics

Total import 2009-2014 in USD mio.

+21%

Total export 2009-2014 in USD mio.

+5.4%

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Trade Relations with UAE

Exports/mln Euro Imports/mln Euro

2010 2011 2012 2013 2014

United Arab Emirates

8,7 0,6 2,1 1,2 1,2

2010 2011 2012 2013 2014 United Arab Emirates

1,4 2,2 2 3,7 3,3

Most exported products: Mineral, fuel and energy, Machinery and equipment Most imported products: Construction materials and metals; chemical and plastic products

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PRIORITY SECTORS

Renewable energy

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Mining Industry

▀

Manufacturing

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Agriculture

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Transport & Logistics

▀ ▀

Tourism

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Where to invest…

New Port of Shëngjin

Blue Highway / highways Privatization of Albpetrol New Airports Albanian Railway Network

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Where to invest…

Hydropower plants Spitalla Industrial Park

Waste Management Infrastructure Projects Digitalization of Touristic Information System

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Agriculture

Koplik Spitalla Vlora

Technical and Economic Development Areas TEDA

“JOIN ALBANIA’S GROWTH”

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TEDA SPITALLA

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• Located close to the city of Durrës,

the second most developed city in Albania

• 6.4 km from the port of Durrës, the

biggest and most important port in Albania

• 30 km

from Tirana International Airport “Mother Teresa”

• 37 km south-west of Tirana
• Contract Notice was published by the

Procurement Agency on 24/08/2015 and FT on 26-27-28/08.2015

• Deadline for submission of offers:

28/10/2015

TEDA SPITALLA

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Manufacturing – industrial and agro- processing

• New innovative industries with

high – tech

• Energy-efficient industries
• High-productivity industries
• IT activities
• Automotive spare parts,

construction materials etc. Commercial and goods storage

• Services (Administration,

Banking, Customs, Health-care, legal, insurance companies, notaries etc.)

• Transport activities
• Support logistics

Duration for the operation of the TEDA

• 99 years

TEDA’s INCENTIVES

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1. Albanian goods that enter TEDA are exempted from VAT taxation 2. Developers and users are also exempted from 50 %of the profit tax rate (currently at a rate of 15 percent) for a period of 5 years 3. Buildings in TEDA are exempted from real estate taxes for a period of 5 years 4. Buildings transferred to the TEDA are not subject to the transfer tax on real estate 5. Wages and social costs are 150% deductible for the first year and new expenses for wages and social contribution compared to the previous year are 150% deductible for the subsequent years 6. Training costs are doubly deductible for a period of 10 years 7. Research and Development costs are doubly deductible for a period of 10 years

Investors already present in Albania

Source: Albanian Investment Development Agency