The Netherlands maintains its position as the top foreign investor in Albania for the fifth consecutive year.
According to data from the Bank of Albania, Dutch investments in the first half of this year amounted to 125 million euros, making up 18% of the total foreign investment inflow. Investments by Dutch-owned companies surged by 79% compared to the previous year.
The cumulative Dutch investment stock has exceeded the two-billion-euro threshold, marking a 30% increase from the same period a year ago.
However, it’s important to note that there are relatively few Dutch investors in Albania, with Shell being the most prominent among them. Recent years have seen Shell potentially increasing its investments related to oil exploration in the Shpirag region.
Yet, beyond Shell’s expanding role, the dominance of Dutch investments in recent years is primarily attributed to the Netherlands’ status as one of Europe’s preferred destinations for registering holding companies. Many international business groups choose the Netherlands for this purpose, enabling them to manage their global investments efficiently.
The Netherlands’ appeal for offshore company registration lies in its robust legal framework that guarantees a high level of confidentiality regarding share ownership. Consequently, several companies that have secured concession contracts in Albania have opted to register in the Netherlands.
Furthermore, the Netherlands stands out as a preferred jurisdiction for establishing holding companies due to its extensive network of agreements with countries worldwide, which helps in mitigating double taxation issues.
Following the Netherlands, Italy maintains its position as the second-largest investor for the current year, with a total investment flow of 109 million euros. Italian investments have seen a remarkable 45% increase compared to the corresponding period the previous year and are diversified across various sectors, with a notable emphasis on service-oriented activities. Italy’s investment stock in Albania has now reached 1.35 billion euros, marking a 27% increase from a year ago.
Turkey ranks as the third-largest foreign investor in the past year, with new investments amounting to 68 million euros. Turkish investments have rebounded this year after registering negative values during the same period in 2022, largely attributed to the sale of Albtelecom from the Turkish Çalık Group to Hungary’s 4iG.
The cumulative Turkish investment stock has reached 905 million euros, marking an 18% increase compared to the previous year. Following their exit from the telecommunications sector, Turkish enterprises continue to play a significant role in the financial, energy, manufacturing, and other sectors in Albania.
Austria takes the fourth spot as a major foreign investor in the past year, with a total investment of 59 million euros, signifying a remarkable 79% increase compared to the same period the previous year.
Austrian investments in Albania are predominantly concentrated in the insurance market, the energy sector, hospitality services, and the construction industry, through various companies. Austria’s investment stock has reached 772 million euros, marking a 21.2% increase compared to the previous year.
The United States stands as the fifth-largest foreign investor for this year, contributing 32 million euros, reflecting an 18.5% increase compared to the same period the previous year. Kosovo follows with 28 million euros, indicating a modest 3% decline.
Other countries with substantial investment values in Albania remain undisclosed due to confidentiality obligations under official statistical legislation. This confidentiality rule is applied when data pertains to a single enterprise to prevent its identification.
Notably, a Canadian-registered company controls Bankers Petroleum Albania, one of the most significant foreign investors in the past two decades. Although the company has been acquired by a Chinese entity, the transaction was executed indirectly through the control of the parent company in Canada.
Hence, Bankers Petroleum is still technically classified as a Canadian company. Data regarding Canadian investments is available solely for their cumulative stock, which reached 1.59 billion euros in the mid-year assessment, marking a 19% increase compared to the previous year.
