The focus for the future development of the Albanian economy will remain on attracting FDIs with a focus on sectors where the Albanian economy has unexploited potential both in terms of natural resources as well as in developing sectors that are yet under-performing such as renewable energy, tourism, agribusiness, infrastructure and services. Albania has adopted a liberal framework which has been designed to create a favorable investment climate for foreign investors. Albania has also signed a considerable number of Bilateral Investment Treaties with different countries such as United Kingdom, France, Germany, Italy, Austria, Switzerland, United States, China, Russia, Israel, Egypt, Cyprus, Turkey and others .
Law no.7764, dated 02.11.1994 “On Foreign Investments” creates a favorable investment climate for foreign investors in Albania. It offers all foreigners, either physical or judicial persons, a range of provisions including:
• No sector is closed to foreign investment and no prior government authorization is needed to invest.
• There is no limitation on the percentage share of foreign participation in companies – 100 % foreign ownership is possible.
• Foreign investment may not be expropriated or nationalized directly or indirectly, except in special cases, in the interest of the public, defined by law.
• Foreign investors have the right to expatriate all investments in the form of funds and contributions in kind.
• The most favorable treatment according to international agreements is provided
Albania’s tax system also does not discriminate against foreign investors.
Legislation concerning the public procurement process makes little distinction between foreign and domestic firms.
Dispute Resolution :
Investors in Albania are entitled to judicial protection through rights related to their investments. Should there be a dispute; parties may submit claims to an arbitration institution for consideration. Foreign investors also have the right to submit disputes to an Albanian court or to the Arbitration Court in Tirana. Provisions on domestic and international commercial arbitration can be found in the Code of Civil Procedure.