Turkey is the main investor in Albania for three consecutive quarters

2024-12-26 22:56:00, Ekonomi CNA

Turkey maintained the leadership of foreign direct investments in Albania for the third quarter in a row.

According to data from the Bank of Albania, for the third quarter of 2024, Turkish investments were worth 58 million euros, roughly the same as the same period a year ago.

While for the 9th month of 2024, the investments of companies with Turkish capital reached the value of 204 million euros, with an increase of 62% compared to the same period a year ago.

The stock of Turkish investments at the end of September 2024 has reached 1.22 billion euros, increasing by 26% compared to the same period of 2023.

Turkish companies have an important role in the Albanian economy, especially in the financial sector, the energy sector, in the extractive industry or even in construction.

However, the increase in the investment stock is not only related to new flows, but also changes in the exchange rate, price changes and other changes should be calculated.

Based on the methodologies used to measure foreign investment, new flows are valued at the average exchange rate of the period, while stock is valued at the exchange rate of the last day of the period.

Also, the stock of foreign investments is periodically reassessed, reflecting the change in asset prices.

After Turkey, the second largest investor for 2024 continues to be Italy, with a total flow of 148 million euros for the 9 months of 2024. Italian investments have increased slightly by 3.5% compared to the same period of a year before and are oriented especially in service activities.

The stock of Italian investments at the end of the third quarter has already reached 1.67 billion euros, increasing by 20% compared to a year ago.

The Netherlands has dropped to third place among foreign investors for 2024. The value of Dutch investments for the 9th month of 2024 fell to 118 million euros, 45% less compared to the same period a year ago. While the stock of Dutch investments has reached the value of 2.47 billion euros, increasing by 17.5% compared to the same period a year ago.

Among the few genuine Dutch investors in Albania is the Shell company, which is estimated to have made large investments in drilling in the oil-bearing area of ??Shpirag in recent years.

However, excluding Shell, the high values ??of Dutch investments in recent years are mainly related to the fact that the Netherlands is one of the preferred countries in Europe to register holding companies, in order to control the international investments of various business groups.

The Netherlands is preferred for the registration of offshore companies, it is because the legislation there guarantees a high degree of confidentiality regarding the ownership of shares.

It is also a preferred jurisdiction for the registration of holding companies, because it has a wide network of agreements with other countries of the world for the avoidance of double taxation.

The fourth most important investor this year, in terms of the value of new flows, is Austria, with 81 million euros. However, Austrian investments have fallen by 8% compared to the same period a year ago.

Austrian investments in Albania are concentrated especially in the insurance market, in the energy sector and in hotel services.

The stock of Austrian investments reached 843 million euros, increasing by 5.4% compared to the same period of the previous year.

The investments of Kosovar enterprises have marked a significant increase this year, which for the 9-month period reached the value of 64 million euros, with an increase of 28% compared to the same period a year ago.

The stock of Kosovar investments reached 387 million euros, an increase of 40% compared to the same period a year ago./ Monitor magazine