Investment Forum – Hong Kong Invest in Albania Tirana, 27. October 2015 Page 1
Agency Profile AIDA - Albanian Investment Development Agency • Principal partner for foreign investors • Direct contacts with all public & private sector key deciders • Project management assistance • Direct support by the Minister of Economic Development, Trade Tourism and Entrepreneurship and Prime Minister. Page 2
Country Profile Located in the center of Southeastern Europe at major crossroads. Neighboring Countries: Montenegro, Kosovo, Macedonia & Greece. Surface: 28,748 km² (Belgium: 30,355 km²) Population: 2.9 million (average age ca. 31.6 years) Coastline: 316 km Climate: mild 270-300 sunny days Int. Airport: Tirana Main Ports: Durres, Saranda, Vlora, Shengjin Natural Resources: petroleum, gas, bauxite, chromite, copper, iron, nickel, salt & timber Huge potential to produce hydro, solar & wind energy Page 3
Economic Profile • Highest economic growth in the region ( World Bank Report ) • 2.1% in 2014 • 3.0% in 2015 (forecast) • Low inflation rate , stable at 1.6%-1.9% during the last 10 years • Solid Exchange Rate at LEK 140.0 = EUR 1.0 • S&P-rating improved twice from “B - ” to “B stable/B positive” Page 4
Economic Trade Integration Free trade with 620 million customers in • CEFTA • EU/EFTA • Turkey • CEFTA is a market of 26 million customers 1 • 7 million Albanian speaking people within CEFTA CEFTA • Since 2014 a EU- Candidate 2 • 40-56 hrs. trucking time to major European cities EU/EFTA • Member of WTO 3 • Trade agreements with many other countries and USA WTO Page 5
Positive Investment Climate • Friendly Business Environment • 100% profit repatriation • Simplified taxation procedures & competitive low tax rates • Competitive Human Capital • Several Sectorial Investment Incentives • Export-oriented growth, 21% annual growth for the past 5 years Page 6
Law 55/2015 on SI • Facilitate administrative procedures and reduce legislative complexity for strategic investments • Due diligence procedure (AIDA completes the due diligence within 30 days of the submission of an application) • Support with the necessary infrastructure and sectorial studies • Provision of fixed assets to develop and implement strategic investment projects • BOSS - Business One Stop Shop Page 7
COMPETITIVE WAGES Average monthly wage in EUR, 2014 Monthly minimum wages in EUR, 2015 Montenegro 288 Albania Albania Bulgaria 157 Bosnia and Herz. 164 Macedonia Bulgaria 194 Romania 214 Macedonia Bosnia and Herz. 236 Serbia Serbia 235 Romania Montenegro 425 Turkey Turkey • According to the latest minimum wage law of • The average monthly wage of Albanian workers is Albania, it is the lowest in the region as low as 266 euros Page 8
Tax & Customs • Corporate tax rate - 15 % • VAT – 20% • Personal tax rate from 0 - 23 % • Favorable tax system for Small Businesses - 7.5% • Treaties for the Avoidance of Double Taxation with over 30 countries Page 9
GDP total in 2014: USD 15.3 billion Steadily growing sectors Agriculture Industry 21.7% 15.3% Construction 12.0% Other services Transport 30.2% 2.8% Page 10
Trade Dynamics Total export 2009-2014 in USD mio. Total import 2009-2014 in USD mio. +5.4% +21% Page 11
Trade Relations with UAE Exports /mln Euro Most exported 2010 2011 2012 2013 2014 products: Mineral, fuel and energy, United Arab Machinery and 8,7 0,6 2,1 1,2 1,2 Emirates equipment Imports /mln Euro Most imported products: Construction 2010 2011 2012 2013 2014 materials and metals; chemical and plastic United 1,4 2,2 2 3,7 3,3 Arab products Emirates Page 12
PRIORITY SECTORS Renewable energy ▀ ▀ Mining Industry ▀ Manufacturing ▀ Agriculture ▀ Transport & Logistics ▀ Tourism Page 13
Where to invest… New Port of Shëngjin Blue Highway / highways Privatization of Albpetrol New Airports Albanian Railway Network Page 14
Where to invest… Hydropower plants Waste Management Infrastructure Projects Spitalla Industrial Park Digitalization of Touristic Information System Agriculture Page 15
Technical and Koplik Economic Development Spitalla Areas TEDA Vlora “JOIN ALBANIA’S GROWTH” Page 16
TEDA SPITALLA • Located close to the city of Durrës, the second most developed city in Albania • 6.4 km from the port of Durrës, the biggest and most important port in Albania • 30 km from Tirana International Airport “Mother Teresa” • 37 km south-west of Tirana • Contract Notice was published by the Procurement Agency on 24/08/2015 and FT on 26-27-28/08.2015 • Deadline for submission of offers: 28/10/2015 Page 17
TEDA SPITALLA Manufacturing – industrial and agro- processing • New innovative industries with high – tech • Energy-efficient industries • High-productivity industries • IT activities • Automotive spare parts, construction materials etc. Commercial and goods storage • Services (Administration, Banking, Customs, Health-care, legal, insurance companies, notaries etc.) • Transport activities • Support logistics Duration for the operation of the TEDA • 99 years Page 18
TEDA’s INCENTIVES 1. Albanian goods that enter TEDA are exempted from VAT taxation 2. Developers and users are also exempted from 50 %of the profit tax rate (currently at a rate of 15 percent) for a period of 5 years 3. Buildings in TEDA are exempted from real estate taxes for a period of 5 years 4. Buildings transferred to the TEDA are not subject to the transfer tax on real estate 5. Wages and social costs are 150% deductible for the first year and new expenses for wages and social contribution compared to the previous year are 150% deductible for the subsequent years 6. Training costs are doubly deductible for a period of 10 years 7. Research and Development costs are doubly deductible for a period of 10 years Page 19
Investors already present in Albania Source: Albanian Investment Development Agency
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