Foreign Direct Investment in Albania By Economic Sector 2006-2011

The foreign direct investment (FDI) is an important source of capital flows and economic development in Albania. Open Data Albania has conducted a research work on the amounts of FDI in Albania by economic sector, based on datasets provided from the Bank of Albania.

The FDI includes foreign institutional or individual investments in an enterprise operating in the domestic economy if 10% or more of the capital of the enterprise is owned by the investor.

In 2011, FDI by sector are shown in the following graph:

^{Source: Bank of Albania
Comments and Analysis: ODA}

As it can be seen in the graph, most of the foreign direct investments are concentrated on the industry sector (47%), followed by financial intermediation (15%), distribution (15%), electricity and gas (14%) and telecommunication (9%).

During the years, the weights of the different sectors have changed, as can be seen by the following table:

Foreign Direct Investments by Sector (million Eur)

^{Source: Bank of Albania
Comments and Analysis: ODA}

Compared to previous years, in 2011 the weight of the FDI in the construction and agricultural sectors has decreased, while the weight of the industrial and financial intermediation sectors has increased.

The FDI is an important indicator of the foreign investor confidence in a country: it lowers in cases of economic and political crises, and it grows when the economic and political environment is improving.