Albania has a favourable geographic position, enabling it to develop trade relations with the bordering countries and other countries in Europe and farther, by land, by air and by sea. Its two big ports, in Durres and Vlora, are equipped with all kinds of facilities harbour and handle ships of various capacities.

Albania has a stable political and economic situation. It has already signed the Stabilisation and Association agreement with EU and is fast meeting EU standards to become a full fledged member in the coming years. Albania has also received the invitation to NATO and is expected to join it as a full member on April 2009. It is a member of UN, OIC, and OSCE (Organisation for Security and Cooperation in Europe). Albania is also a member of the WTO (World Trade Organisation) and has signed bilateral economic agreements with numerous of countries it has economic relations with. The Islamic Bank is also a strategic partner of Albania.

The consecutive governments of Albania have paid special attention to accomplishing the legal framework with all the respective laws required for carrying out business activities and investments in Albania. Foreigners can set up their own companies, buy land, and carry out their business protected by special laws.

Opportunities & Incentives For Foreign Investors
Notwithstanding the difficulties and challenges, Albania is a country that offers many investment opportunities to foreign entities and individuals. The country has considerable natural resources, including oil, gas, coal, iron, copper, chrome, water and hydroelectric potential.

The privatisation process in itself offers a wide range of options. Potentially high profit sectors include mining and oil extraction, both of which are export-oriented industries. Albania is the only country in Europe with substantial reserves of chromium, which before 1990 made it the world’s third largest producer of chrome ore. Nevertheless, significant capital investments and capacity upgrades are needed in order to modernise the old, outdated production methods. Other areas of interest include thermal and hydro power production, alternative sources of energy production, infrastructure, agriculture as well as light industry sectors such as textiles, leather and footwear, confections and meat processing.

The privatisation strategy explicitly seeks qualified foreign firms as strategic investors for these key sectors. The process has already attracted foreign investors, mainly from Greece, Italy and Turkey.

Tourism also offers great investment prospects. Albania has spectacular mountain scenery, a beautiful and pristine coastline, as well as ancient history and culture. Tourism could be one of the main attractions for foreign investors in the future, but currently Albania offers all facilities to promote investments in this sector. Albania has 400km coastline.

Investors in Albania enjoy full legal protection of their investments. Private investments cannot be nationalised, expropriated or subject to any similar measure, except in special cases provided by law such as public interest. Parties in a dispute may agree to submit claims for consideration by an arbitration institution. Foreign investors have the right also to submit disputes to an Albanian court.

Other legal incentives include:
• Equal treatment of foreign and domestic
investors
• Full profit and dividend repatriation,
after taxation
• Repatriation of funds from liquidated
companies
• Bilateral agreements on the promotion
and protection of reciprocal investments
with Austria, Belgium, Bulgaria, China,
Croatia, Czech Republic, Denmark,
Egypt, Finland, France, FYROM, Germany,
Greece, Hungary, Israel, Italy,
Luxembourg, Malaysia, the  Netherlands,
Poland, Portugal, Romania, Slovenia,
Sweden, Switzerland, Tunisia, Turkey,
United Kingdom and the United States.

The former President of Albania, who is also the head of Government, Dr. Sali Berisha and the former Prime Minister of Malaysia, Tun Dr. Mahathir have visited the respective countries. These visits served to boost the bilateral relations between the two countries and lay down the ground for economic cooperation.

The following agreements have been signed between the two countries:
• Abolition of double taxation and prevention
of fiscal evasion
• Cooperation in the areas of Economy,
Science and Technology
• Trade agreements
• Promotion and protection of investment
• Payments adjustment between the Bank
of Albania and Bank Negara of Malaysia
• Agreement for abolishment visa for citizen of
two countries

The Chamber of Industry and Commerce of Albania and The International Commercial Bank, which is part of the ICB Financial Group (Malaysia), are two important institutions operating in Tirana that can provide all the information one needs when it comes to doing business in Albania.

References:
Ministry of Economy, Trade and Energy
http://www.mete.gov.al

Chamber of Commerce and Industry of Tirana
http://www.cci.gov.al

Albania – A New Mediterranean Love
http://www.albaniantourism.com

ICB Global Management Sdn Bhd
http://www.icbglobal.com.my