Open Data Albania has updated the stock data of Foreign Direct Investment (FDI) in the Albanian economy. The data are according to the Bank of Albania. Foreign Direct Investment Stock represents the level of Direct Investment at a given point in time. The stock of FDI represents the value of assets owned by foreigners in the Albanian economy, in the form of capital and net loans they have provided to resident companies.
At the end of 2020, the stock of Foreign Direct Investment in the Albanian economy reached 8.82 billion (8 billion eight hundred and twenty million) Euros, which marks the highest historical value. At the end of the first quarter of the current year 2021, the Foreign Direct Investment Stock reached 9 billion Euros. The value of assets owned by foreigners in Albania has increased from year to year, and from 3.9 billion (three billion nine hundred million) Euro in 2012 has exceeded the value of 9 billion euros at the end of the first quarter of 2021.
The stock of FDI in Albania is characterized by an upward trend, namely from 2012-2020 the total growth results in plus 4.9 billion Euros or an additional 126% higher than the stock in 2012.
If we analyze the change in the stock of foreign direct investment on an annual basis, it turns out that the biggest change, i.e. the highest growth is observed in 2018, respectively 15.5 percent higher than in 2017 or about 1 billion euros more investment.
Open Data Albania has also researched the origin of foreign direct investments in Albania by values and years. Switzerland, the Netherlands and Canada are currently the three countries with the highest values of Direct Investment Stock. Until 2017, our southern neighbor Greece was the country with the most Foreign Direct Investment in Albania. The country with the highest stock of FDI, since 2018 is Switzerland. At the end of 2018, the investment stock of Swiss companies in Albania was 1.3 billion euros or 18 percent of the total, while in 2020, the investment stock reached the value of 1.66 billion euros or 19 percent of the total. Switzerland has had a very high increase in the stock of FDI, specifically, it is the country with the highest increase in the value of investments, from 2014 to the end of 2020, the increase is about 1.58 billion ALL. In the case of Switzerland, the increase in foreign investment is mainly due to investments in the energy sector, such as the Trans-Adriatic Pipeline, but also other investments such as the Ballsh refinery, etc.
The second country with the highest share of foreign investments in Albania at the end of 2020 is the Netherlands, which accounts for 16% of the FDI portfolio in Albania, or 1.4 billion euros. The Netherlands has had a significant increase in investments in our country, respectively from 2014-2020 have been invested 916 million Euros more. For the Netherlands, the increase came from the oil company Shell, but also due to the fact that a number of Public-Private Partnership companies operating in Albania are registered in the Netherlands. Another investing country with a high impact on the Albanian economy is Canada, which accounts for 13% of the FDI portfolio, or about 1.13 billion Euros. Since 2014-2020, the inflow of investments from Canada to Albania has increased by 404 million Euros.
Many of these investments are foreign as the Business that owns the Capital is registered in a foreign country, but the possibility that the final owner is an Albanian citizen is evident in the case of shell companies for which the name of the final owner is not published.
Italy also represents an important part of the foreign investments benefitting Albania for years. Currently 10% of the FDI portfolio is owned by Italian companies, whose investment exceeds the value of 873 million euros. Italian companies have increased investment in Albania over the years, from 2014 to the end of 2020 investments have increased by 350 million euros. Italy dominates the Manufacturing, Electricity, Gas, Water, Construction and Other Services sectors.
Other countries with a significant weight in terms of Foreign Direct Investment in Albania are Turkey with 7%, Austria with 7%, Bulgaria with 6%, Greece with 6%, France with 4%, while 12% consists of other countries., such as: Cyprus, Germany, USA, Hungary, United Kingdom, Slovenia, Luxembourg, Panama, etc.
Greece has a stock decline of 649 million euros from 2014 to 2020, changing the position of countries in the FDI portfolio in Albania. Greece has been the largest investor until the end of 2017, then fell to second place and in 2019 and 2020 ranks eighth in terms of the share of foreign investment in total. Greek investments in the country are generally made in the banking sector, the telecommunications sector, but also in other manufacturing sectors.
Also other countries that have reduced the stock of investments in Albania from 2014-2020, including: Kuwait, Cayman Islands, British Isles, and International Organizations.
Bulgaria from 2019 appears among the 10 countries with a high weight respectively 6% of the total or 535 million euros. Finally, the increase comes mainly from investments in power generation and electricity networks and in telecommunications.
The Excel version of this article can be easily downloaded by highlighting the visualized data in the table.Download excel: Origin and Stock of Foreign Direct Investment March 2021
Comment and Analysis: Open Corporate Albania
Translated by: Etleva Kondakçi