Business climate between Albania and Kosovo, two states of the same nation, often experiences fluctuations and conflicts.

Official data from the Institute of Statistics (INSTAT) showed that 38 businesses with 100% ownership from Kosovo shut down their operations in the country in 2022, while the number of businesses from neighboring countries like North Macedonia and Serbia increased.

In 2022, the number of businesses with 100% ownership from Kosovo reached 356, down from 394 in 2021.

During the same period, businesses with 100% ownership from North Macedonia reached 105 in 2022, up from 92 in 2021. The number of businesses with 100% Serbian ownership reached 23 in 2022, almost doubling from 14 in 2021.

Trade relations with the countries of the region have also been reflected in commerce. In 2022, imports from Serbia increased by 3% from 2010, while Albanian exports to Serbia were 9.4 billion lek, expanding by 533% from 2010.

Although foreign investments in value have been increasing in recent years, the number of enterprises with 100% foreign ownership decreased in 2022. INSTAT reported that out of 5,250 foreign businesses in 2021, there were 4,934 businesses in 2022, or 6% less.

Enterprises from Serbia, Kosovo, and North Macedonia, however, have a low weight in sales, employment, and exports compared to the total of foreign enterprises in the country.

In 2022, enterprises from the region contributed to 7.7% of total employment from foreign enterprises and 8.8% of total sales. Businesses from Kosovo contributed in the same year to 5.1% of total employment from foreign enterprises and 5.9% of sales.

Enterprises from Kosovo in Albania mostly operate in the trade, accommodation, and construction sectors. Businesses from North Macedonia are more focused on trade, transport, and construction, while enterprises from Serbia mainly operate in the accommodation, construction, and trade sectors.

In 2022, enterprises with origins from EU countries accounted for an average of 62.7% of foreign and joint enterprises, while Western Balkan countries represented 10.3% of these enterprises.

EU countries represent the largest portion of employment in foreign and joint enterprises. In 2022, these countries accounted for 73.9% of total employment.