L o g o Doing Business in SEE What Albania offers...Albania has good solar energy regime with 300...

L o g o

Doing Business in SEE

What Albania offers

Tirana Chamber of Commerce & Industry

Visit www.cci.al for further information about Albania

Why ALBANIA

Political stability and low country riskPolitical stability and low country risk1

Growing economy with low rate of inflationGrowing economy with low rate of inflation2

““ProPro--businessbusiness”” government policiesgovernment policies3

A very favorable geographical positionA very favorable geographical position4

Our

country

offers

Rich in natural resourcesRich in natural resources5

Skilled human resourcesSkilled human resources6


Great Economic Potential

�� Sound Macroeconomic ManagementSound Macroeconomic Management::�� high & stable growth (average 7 % annually during last decade), high & stable growth (average 7 % annually during last decade), �� low inflation ( between 2low inflation ( between 2--4 % annually), 4 % annually), �� low fiscal deficit (3low fiscal deficit (3--4 %) and low public debt (less than 60%) conform EU standards.4 %) and low public debt (less than 60%) conform EU standards.

�� Strong commitment of proStrong commitment of pro--business governmentbusiness government: : �� improved business climate improved business climate �� Progressively increasing FDIs (680Progressively increasing FDIs (680 mio mio €€ in 2008, 42% increase from 2007in 2008, 42% increase from 2007))

�� Important Geographical PositionImportant Geographical Position: : �� Potential to become crossroad between EastPotential to become crossroad between East--West & NorthWest & North--South South

international trade. international trade. �� Significant potential to be the gateway for the region.Significant potential to be the gateway for the region.

�� Skilled Human ResourcesSkilled Human Resources: young population, well educated & : young population, well educated & trained labor force, very competitive salaries.trained labor force, very competitive salaries.

�� Rich of Natural AdvantagesRich of Natural Advantages: tourism, maritime resources, minerals, : tourism, maritime resources, minerals, oil & gas, hydro power, agriculture, etc. oil & gas, hydro power, agriculture, etc.


Stable Political Situation

�EU integration.

� Signed SAA with EU as of 12 June 2006.

� Trade Interim Agreement since 1 December 2006.

� Application for candidate status within 2009.

�NATO integration.

� Candidate status approved in 2008

� Full membership expected by April 2009, in the

Strasburg Summit


Fiscal Attractiveness

Corporate Income Tax

19%

16%

16%*

15%

12%

10%*

POLAND

SLOVENIA

ROMANIA

CROATIA

CZECH

REPUBLIC

ALBANIA

Personal Income Tax

PIT rate in UK 22%

CIT rate in UK19% 24%

23%

20%

19%

16%

10%

SLOVENIA

CROATIA

POLAND

ROMANIA

CZECH REPUBLIC

ALBANIA

The Tax System in Albania includes

Corporate Income Tax 10% flat tax from Jan. 08’Personal Income Tax 10% flat tax from Jan. 08’Withholding Taxes 10% Interest, Dividends and Profit Social Insurance Tax 15% Employer contributionValue Added Tax 20% Negotiations to reduce it


Legal Incentives

• Facilitated registration procedures (1 day“One Stop Shop)

• Facilitated licensing process (one-stop-shop) From May 2009

• Improved tax administration (ON-LINE tax)

• Facilitated e-procurement procedures for public tendering

• Concession law to guide public-private partnership

• Equal treatment of domestic and foreign investors

• Tax Exemption for profit reinvested in Albania

• Full profit and dividend repatriation

• Bilateral Agreements (Free Trade Area agreements)

•Treaties to avoid double taxation


Economy Performance

�� Starting a businessStarting a business

�� Getting CreditGetting Credit

�� Protecting InvestorsProtecting Investors

�� Paying TaxesPaying Taxes

Source: Doing Business 2009, World Bank

Economy

Ease of

Doing

Business

Rank

Starting a

Business

Dealing with

Construction

Permits

Employin

Workers

Registering

Property

Gettin

g

Credit

Protecting

Investors

Paying

Taxes

Trading

Across

Borders

Enforcing

Contracts

Closing a

Business

Macedonia 71 12 152 125 88 43 88 27 64 70 129

Albania 86 67 170 108 62 12 14 143 77 89 181

Monteneg 90 105 167 104 123 43 24 139 125 130 42

Serbia 94 106 171 91 97 28 70 126 62 96 99

Croatia 106 117 163 146 109 68 126 33 97 44 79

Bosnia 119 161 137 117 144 59 88 154 55 123 60

Second TopSecond Top--Reformer Country in the WorldReformer Country in the World


Attractive sectors

The most attractive sectors to invest

in Albanian

BB

EE

CC

DD

AA�� Energy SectorEnergy Sector(hydro, windy & solar

energy, oil & gas)

�� Industrial ZonesIndustrial Zones

�� TransportTransport(road, railway,

air transport)

�� Tourism SectorTourism Sector((coastal, mounting & coastal, mounting &

historical tourismhistorical tourism),),

�� MiningMining((Groundwater resources,

carbonate & industrial minerals,

mineral rocks, chromites etc))


Energy Sector

•Hydro EnergyAlbania has a major hydropower potential of which only 35 % so far is being exploited.

•Oil & Gas EnergyMore than 50 million tone of crude oil and 10 billion sm3 natural gas are produced.

•Solar EnergyAlbania has good solar energy regime with 300 days/year.

•Wind EnergyThree companies already got the license in Albania to establish wind power plants.

•Fuel WoodQuite significant consumption especially in the countryside.

•Bituminous SandsAlbania is one of the richest countries with bituminous sands.

•Geothermal EnergyAlbania is rich of thermal springs and wells, which represent a real potential


Industrial Zones


Six Industrial Zones Identified

Durres, Shkoder, Lezhe, Vlora, Elbasan

Feasibility studies for 3 zones completed

in cooperation with GTZ and WB

Law on Free Zones and the law On

Concessions in force

The identified sites are Greenfield, with

perfect vicinity to infrastructure, sea port

and logistics

Full government support for the

development of the sites


Transport Sector

�� EastEast--West CorridorWest Corridor

260 km The main section

96 km Other branches

�� NorthNorth--South Corridor South Corridor 339 km The main Section

72 km Other branches

�� DurresDurres––Morine Morine

(Albania to Kosovo) Corridor

169 km Motorway

�� Road of Arberit Road of Arberit

(Albania-Macedonia) Corridor

72,6 km Highway


� Durres

� Vlora

� Shengjin

� Saranda

Sea Ports

Durres

Vlora

Saranda

Shengjin

• It’s situated in SW part of the city of Durres and 36 km West of Tirana.

• The main and biggest Port in Albania and the gateway of Corridor no. 8th

•Durrës Port


Touring Albania

Over 2 million tourists visited Albania until September 2008(previous years average 250 thousand tourists a year)

Development of the tourism sector, made Albanian real estate sector

one of the most attractive markets in Western Balkans

Albania, possesses a very rich natural and cultural heritagewith very attractive tourism potential.


Touring Albania

Coastal TourismThe Albanian Riviera is one of the most picturesque places of the Mediterranean with almost non exploited tourist potential

Mountain & Rural Tourism

Cultural TourismRound 2000 archaeological/historical sites (castles and fortresses, religious monuments and vernacular architecture) art galleries etc.

Flora & FaunaGreat variety of plants and a number of rare birds and animals.

Outdoor ActivitiesExcellent sites for outdoor sports and activities


Business key figures

85%

of GDP

85%85%

of GDPof GDP

99.5 %

private capital

0.5% state capital

84 700 companies

75%Working

Force

75%75%Working Working

ForceForce


Business Key figures

1 % joint capital

99% albanian capital

Domestic and

foreign

capital ratio

L o g o

C l i c k t o e d i t c o m p a n y s l o g a n .Thank YouTirana Chamber of Commerce &Industry

Mimoza Preku

Head of Office Services

L o g o Doing Business in SEE What Albania offers...Albania has good solar energy regime with 300...

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