Albanian investments abroad achieved a historic milestone in the first half of this year.
According to data released by the Bank of Albania, during the first six months of 2023, the value of foreign investments made by Albanian companies abroad reached 126 million euros, marking a substantial 40% increase compared to the same period in the previous year.
This figure represents the highest level of Albanian investments abroad ever recorded, at least according to data available from the Bank of Albania’s statistical series, which has been tracked since 2008. In the majority of cases, these investments were directed into the direct capital of companies located outside Albania.
These capital injections accounted for more than 72% of the total new inflow of Albanian investments abroad. The remaining portion mainly consisted of loans provided by Albanian shareholders to their foreign-based subsidiaries.
In the same vein, foreign direct investments within Albania for this year have also been setting records. However, a parallel trend is emerging with Albanian investments abroad.
Nonetheless, the net balance of foreign direct investments for the first half of 2023 showed a negative figure, totaling 560 million euros, indicating an increase of 1.8% compared to the same period in the previous year.
A negative balance in the foreign investment account suggests that foreign direct investments entering Albania continue to surpass Albanian investments made abroad significantly.
Unfortunately, detailed statistical data regarding the geographic and sectoral distribution of Albanian business investments abroad have not been disclosed. Consequently, it’s challenging to pinpoint the precise countries and sectors that have experienced the most significant expansion of Albanian investments abroad or which regions or industries have fueled the robust growth observed over the past two years.
Several of Albania’s prominent business conglomerates have maintained a presence abroad for years, and this presence appears to be expanding in recent years as part of their diversified business strategies.
Insights from the Central Bank of Kosovo provide valuable information on Albanian investments within Kosovo, considered to be the country with the highest concentration of Albanian investments abroad.
According to data from the Central Bank of Kosovo, as of the end of March 2023, the total value of Albanian investments in Kosovo amounted to 322 million euros. This positioning ranks Albania as the sixth-largest investor in Kosovo.
Furthermore, new streams of Albanian investments in Kosovo for the first half of this year reached a total value of 32.7 million euros, demonstrating an increase of 7.6% compared to the equivalent period in the previous year.
The notable presence of Albanian companies in Kosovo primarily revolves around the trade and financial sectors.
In Kosovo, several major Albanian enterprises are engaged in the distribution of consumer goods, retail, and operate within the banking, insurance, and payment services sectors.
