Energy and gas, the much preferred sectors for foreign investments in Albania

Money mainly spent to produce or transmit electric energy or gas. This is the latest trend of foreign direct investments in Albania, at least referring to the data provided by the Bank of Albania. According to these data, electricity and gas are the main sector where most of the money of foreign entrepreneurs are recently being spend in our country in the form of foreign direct investments. This sort of “momentum” was more notable last year, where, as part of the investments made on the Trans-Adriatic pipeline (TAP) or those made in the power plant of Devoll, direct foreign investments in the “Electric energy, gas, steam and supply with air conditioning” sector amounted to 1.5 billion euros. This is a much higher figure than the one three years ago, namely, 30 million euros, or 2016 when this figure was 960 million euros. This goes to prove that from one year to another, foreigners are considering Albania has a country worthy investing in hydro power plants or gas projects. Meanwhile, there has been a modest growth in the investments made in the domain of financial activities or insurance sector. In 2014, the amount of foreign direct investments for these sectors amounted to 725 million euros, while last year, they amounted to 987 million euros.

Management of wastes and water attract fewer investments

The management of wastes in general or water supply are the domains where foreigners are less interested on spending their money in in Albania. Although there’s been debate on the processing of wastes in the country, foreign companies seem skeptic to invest in this field. The data from the Bank of Albania show that at the end of last year, the stock of direct foreign investments concerning this domain was 3 million euros. Quite a small figure, which is close to the 8 million euros worth of foreign direct investments made in agriculture or fishing. It must be said that fishing is a much neglected sector by foreign investments, although, the government has recently made all possible efforts to make it attractive before foreign entrepreneurs. Education is another sector with a very low level of direct foreign investments, which last year, amounted to 17 million euros. This is a level which has remained almost unchanged in the recent years and proves very little interest by foreigners in this sector.

Banks and insurance still remain an attractive sector for investments

Banks and insurance sector still remain an attractive domain for foreign direct investments in our country. Although they’re nowhere near to the investments made in the sector of hydro power plants or gas, they can still be considered high with 987 million euros at the end of last year. Meanwhile, three years ago, this amount has been lower, namely, 725 million euros. This shows how financial activities such as the insurance market, continues to be on the focus of foreign investors who decide to spend money in Albania. Let us recall than commercial banks operating in Albania consist almost entirely of foreign capital and the same goes for a significant part of insurance companies.

Construction and transports, activities being funded by Albanians

Construction and transports are two activities which are mainly being funded by Albanians, rather than foreign investors. Such fact is shown by the latest figures provided by the Bank of Albania, according to which, foreign direct investments in these two sectors are not at optimal levels. So, according to the Bank of Albania, the construction sector has registered a drop of foreign investments in it, at a time when, according to the Bank of Albania, this sector has seen a positive performance. Foreign direct investments in construction at the end of last year amounted to 110 million euros and this figure was lower than the one 2 or 3 years ago, when it amounted to 140 million euros. The same thing can also be said about transport, which, although foreign direct investments from one year to another have not seen a decline, they are still low. According to the Bank of Albania, at the end of last year, the stock of direct foreign investments in the sector of transports was 160 million euros, while 3 or 4 years ago, they were in the area of 153 million euros.