Albania is a country with great economic potential due to its geographic location in Europe and its abundance of natural resources. In recent years, the Albanian government has implemented a series of reforms to increase investment in the country, improve the business climate, and enhance business competitiveness.

Consequently, the country offers a conducive environment and low costs suitable for doing business, attractive programs for investors, and an online system for company registration and tax payment. The Albanian government places significant importance on sectors with high development potential such as agriculture, tourism, information and communication technologies (ICT), and more. It is noteworthy that Albania offers a simple process for establishing and registering a company or business in the country.

In 2018, the trade volume between Israel and Albania was $20 million. The primary export from Israel to Albania is chemical products, and the main import from Albania to Israel is textile products. For further reading about the relations between the countries and tax aspects in Albania, click here.

Albanian Investment Development Agency – AIDA

The Albanian Investment Development Agency (AIDA) is an integral part of the Ministry of Finance and Economy of Albania. The agency’s purpose is to improve competitiveness in the private sector, strengthen the country’s export potential, promote and support foreign investments in the country, and enhance the tourism potential of the state.

The agency assists various companies at all stages of their business activities in the country, through intervention and cooperation between state institutions and companies wishing to conduct business in the country. AIDA helps companies in the following areas:

• Information – Providing relevant information about the country’s economy, human resources, state infrastructure, and existing investment incentives in the country.
• Contacts and Networking – The agency facilitates direct networking opportunities with business professionals both within Albania and internationally, aiming to ideally align with the specific needs of investors. This initiative is designed to ensure that investors are presented with the most advantageous offers tailored to their unique requirements.
• Consulting – When needed, the agency provides business advice concerning areas of activity, investment plans, and financing methods.
• Assistance – The agency offers close accompaniment during the company’s initial “exploratory visits” in the country before establishing the company, and at each of the different stages of starting business activity in the country. Additionally, the agency connects investors with Albanian institutions and companies involved in the investors’ interests and areas of activity.
• Sustainability – The agency offers support to the company in everything related to sustainability and environmental quality, by matching and attaching one of the government offices or local organizations and authorities to the company for the purpose of improving and promoting sustainability and environmental conservation in the company.

For further reading about AIDA, click here.

Natural resources in Albania

The combination of Albania’s abundant natural resources, along with its diverse landscapes and geographical location, creates unique opportunities for development and investment in the country, particularly in the fields of energy and minerals, agriculture, and tourism.

Energy

As of 2023, the energy sector in Albania contributes 33% to the country’s GDP, and in 2019, this sector attracted 31% of the total investments in the country, positioning it as one of the most significant sectors. Albania is considered rich in resources, including a wide network of rivers and streams of various sizes, climatic conditions that provide 300 sunny days a year, and a location on the Adriatic coast, offering substantial potential for wind energy production. All these factors present significant investment opportunities. Additionally, Albania is rich in large mineral deposits, including copper, limestone, sandstone, asphalt, and more. The exploration and exploitation of these resources are important components of Albania’s economy.

Why invest in the Albanian energy industry?

1. In the “Albania 2030” plan set by the Albanian government, the energy sector is a top priority for the development of a green energy economy in the country.
2. Incentives and government support from AIDA.
3. Skilled, inexpensive, and highly experienced technical labor force.
4. A successful track record of sectoral investments in the energy sector in the country.

Agriculture

The agricultural sector in Albania is one of the most dominant sectors in the Albanian economy and is the main source of income and employment in the country. In 2019, this sector accounted for about 17.8% of the country’s GDP and employed about 40% of the total workforce.

Given the significance of this sector for the country, due to its fertile land and abundance of natural water resources, the agricultural sector offers many opportunities for innovation and development.

Why invest in the agricultural industry in Albania?

1. A typical Mediterranean climate with good and fertile soil.
2. A diverse climate in different regions, suitable for growing various products.
3. 560,000 acres of arable land.
4. Abundant water resources.
5. Skilled, inexpensive, and highly experienced technical labor force.

Tourism

In many countries, the tourism sector is considered one of the most important for development and economic growth. Albania’s geographical location offers full accessibility to countries around the world and particularly to the European community, to its territory. Moreover, Albania has diverse types of tourism such as beaches, mountains and rivers, as well as ancient culture and history.

Foreign Investments in Albania

Albania has unique and investor-friendly legislation designed to attract foreign investors to the country, based on principles of equality, non-discrimination, and protection of investments. The law stipulates that:

• A foreigner (non-resident of Albania) can own 100% of an Albanian company.
• The foreign investor can withdraw their money at any time without restrictions.
• Foreign investments are protected against expropriation or nationalization except in cases defined by law as ‘for public use’ and more.

To read the law in Albanian, click here.

The development and growth in foreign investments in Albania are evident. According to the Bank of Albania, in 2022, total investments amounted to 1.372 billion euros compared to 2021, when the total investments were 1.035 billion euros – a growth of 32.5%.

In conclusion, it should be noted that our office is currently establishing the Israel-Albania Chamber of Commerce in cooperation with the Albania-Israel Chamber of Commerce, headed by Mr. Elton Naik.

Our office has an additional branch in Albania, and we have extensive connections both with government officials and with lawyers, accountants, and bankers in Albania who help us conduct business easily and simply. Our office specializes in assisting businesspeople conducting business activities in Albania, and soon, a convenient and simple package for a complete business envelope in Albania will be offered to Israelis. This package includes company establishment, bank account opening, and professional support in a fast, efficient, and professional manner through an Israeli company in collaboration with leading law firms in Albania.

For contact and arranging an introductory meeting, click here.