TIRANA, March 28, 2022 – With an annual increase of 10 percent, Italy has become the second largest foreign investor in Albania in 2021, with a total inflow of 142 million euros, according to data from Albania’s central bank.
Italian investments are spread in many sectors, but are oriented especially toward service activities.
While nominally the Netherlands came in first for the third year in a row, the number is largely due to Albanian and other non-Dutch investors registering in the Netherlands as a favorable EU jurisdiction, experts say.
Data from the Bank of Albania show that investments from Dutch-registered companies last year reached 237 million euros, a value that accounts for about 23 percent of the total inflow of foreign investments in 2021.
Some of the most important companies in Albania controlled by investors registered in the Netherlands are Devoll Hydropower, Vodafone Albania and American Hospital, according to an analysis by Monitor magazine.
The third largest investor in 2021 was Turkey, with a new investment flow of 89 million euros. However, Turkish investment fell sharply by 26 percent compared to a year ago. Turkish businesses are present in Albania with several large enterprises in important sectors of the economy, such as the banking market, the financial market, the metallurgical industry, energy or construction.
However, earlier this year one of the most important Turkish investors, Çalik, decided to sell the controlling stake in Albtelecom to the Hungarian group 4iG, which led to the shift.
Significant increase for 2021 was also marked by French investments, which reached the value of 70 million euros, with an increase of 75 percent compared to the same period a year ago.
Among the most important businesses with French capital in Albania are the company for the production of identification documents ALEAT, the bitumen mine in Selenica and some companies engaged in the renewable energy sector.
The fifth largest foreign investor for last year was Austria, with a total investment of 66 million euros, slightly increasing by two million euros compared to a year ago.
Austrian investments in Albania are mainly concentrated in the insurance market and in the construction sector.
Swiss investment fell further last year to 52 million euros, 72 percent less than in 2020. The decline in Swiss investment in recent years has been linked to the completion of the construction of the TAP pipeline, a multinational company, but registered in Switzerland.
Last year there was also a significant increase in investments from Germany, Kosovo and the United States. German investments for 2021 were worth 44 million euros, with an annual increase of 144 percent, Kosovar investments reached 41 million euros, annual growth of 193 percent and American investments reached 33 million euros, an annual increase of 120 percent, according to Monitor magazine.
