A Quiet Powerhouse for Global Capital

In the ever-shifting world of global investment, one country in Southeastern Europe is quietly gaining the attention of smart investors: Albania.

While FDI flows around the world have faced headwinds: think geopolitical instability, interest rate hikes, and reduced financial activity in developed markets, Albania is bucking the trend. It’s positioning itself as a dynamic and dependable destination for foreign direct investment.

Here’s how and why that’s happening.
Who’s Investing? A Look at the Major Players
 
Albania’s FDI base is impressively international. From 2014 to Q3 2023, the top investor countries were:
  • 🇨🇭 Switzerland – €1.83 billion
  • 🇳🇱 Netherlands – €1.69 billion
  • 🇮🇹 Italy – €887 million
  • 🇹🇷 Turkey – €809 million
  • 🇦🇹 Austria – €489 million
In terms of investment stock, the Netherlands and Switzerland lead the pack, followed by Canada, Italy, and Turkey.
FDI Globally Is Slowing But Not in Albania

Let’s put it in perspective: in 2022, global FDI fell by 12%, hitting $1.3 trillion due to uncertain market conditions. Meanwhile, Europe saw modest recovery in 2023 with inflows rebounding to $70 billion. Amid that, Albania not only weathered the storm but continued to thrive.

In 2022 alone, Albania attracted €1.37 billion in FDI. By the first nine months of 2023, it had already pulled in €1.09 billion on track to top the previous year. This isn’t a fluke. Albania has consistently outperformed its ten-year FDI average for the last five years. That kind of consistency is hard to ignore.
This diverse portfolio reduces dependency on any single partner and boosts Albania’s resilience.