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Director Haris Bašić. FIPA SUPPORT. Servicing potential and existing investors , especially during the process of business registration L egal advises for foreign investors Providing of all information related to BiH business environment I nvestor’s after-care Policy advocacy
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Director Haris Bašić
FIPA SUPPORT • Servicing potential and existing investors, especially during the process of business registration • Legal advises for foreign investors • Providing of all information related to BiH business environment • Investor’s after-care • Policy advocacy • Analysis and presentation of attractive sectors for foreign investments • Good co-operation with all levels of Government in BiH OUR SERVICES ARE FREE AND CONFIDENTIAL!
Bosnia and Herzegovina – facts and figures • Located in the West Balkans – SE Europe • Territory: 51,209 sq.km • Territorial units: • two entities – Federation B&H • Republika Srpska • one district – Brčko District B&H • Climate: continental, sub-continental, Mediterranian • Population: about 4 million
GENERAL ECONOMIC INDICATORS (2000 – 2005) Source : Central Bank B&H, MOFTER 1 Statistical offices in B&H produce only data for Industrial Production Growth rate on entity levels. Therefore, B&H Industrial Production Growth rate is estimation. 2 The Labour Force Survey was for the first time carried out in April 2006, as an annual survey 3Source: Central Bank B&H
SARAJEVO AND BANJA LUKA STOCK EXCHANGE In Million EUR Sources: SASE – Sarajevo Stock Exchange and Banja Luka Stock Exchange
MAJOR FOREIGN TRADE PARTNERS (2005) TOP INVESTOR COUNTRIES IN BIH (1994 – 2005)TOTAL AMOUNT 2.2 billions € 294,00 281,21 252,58 221,39 201,45 151,85 50,11 39,37 39,37 29,65 Austria Croatia Lithuania Netherlands Antili Slovenia Germany Netherlands Serbia and Montenegro Switzerland Italy milion €
FDI in BiH by sectors (May 1994 – June 30, 2006) Source: Central Bank of BiH, MOFTER
Top 20 Foreign Investment 1994- June, 2006 (million EUR) Source: MOFTER
FDI INFLOWS IN SOUTH EAST EUROPE (mil. $) FDI PER CAPITA (in $) Source: UN World Investment Report 2005 1 Source: Hrvatska narodna banka 2 Source: SIEPA 3 Source: InvestBulgaria Agency 4 Source: Centralana banka BiH
Why invest in BiH? • Economic Accelerated Reform Process • Fast improvement of business climate • Stable financial sector • Unique VAT rate of 17% • Availability of skilled, educated and competitivelypriced labour force • An abundance of premises and sites: 7 free zones • Long industry tradition and experience of jointventures (engineering, metal) • Negotiations with WTO
Why invest in BiH? Financial Stability • The lowest inflation in SEE • Most stable currency in Southeast Europe(pegged to EURO, 1KM =0.51 EUR) • Permanent growth of GDP 6 % per year • On the May 17, BiH was given “B2” credit rating with a stable perspective by the Moody’s Agency • Large inflow of foreign banks – currently, foreign ownership in banking sector in BiH is 85%
Investment Environment • FDI Law • National treatment of foreign investors • Exemption from payment of custom duties and custom fees for investment • Repatriation of profits • Protection against nationalization, expropriation orsimilar measures • Right to freely employ foreign nationals, subject to the labour and immigration laws in Bosnia and Herzegovina • Tax incentives • Five year exemption from payment of tax on profits in Federation BiH • Corporate organization • There are no citizenship/nationality limitations for partners or the members of the management and supervisory boards Favourable Legislative Treatment
Investment potentials – Attractive economic sectors • Auto-components • Metal industry • Energy sector • Tourism • Agriculture and Food processing industry • ICT • Wood industry • Infrastructure
OUR GOALS • Sustain economic growth • Progress in reforms and economical liberalization • Creating enviromant for public private partnerschips • Creating of industrial parks and eraes • Creating a friendly business environment • Removal of administrative barriers • Implementation Strategy for promotion – attraction investmants in BiH
Advantages are: • Macro economic stability • The lowest inflation in the region • The fastest GDP growth in the region • Stable Currency exchange rate • Completely reformed banking sector • Reform of tax system, including VAT system, created unique tax system in the Country. • Favorable legal framework for foreign investment.
Branilaca Sarajeva 21 Phone: ++387 33 278 080 Fax: ++387 33 278 081 E-mail: fipa@fipa.gov.ba