The State Department report notes that the Albanian legal system does not discriminate against foreign investors and the country’s economic rebound is expected to be fueled mostly by increased consumption and a large post-earthquake reconstruction program.

“Albania has been able to attract increasing levels of foreign direct investment (FDI) in the last decade,” the report reads.

The Department of State report also praises significant advancements in digitalization of the public service delivery to citizens and businesses. “This should help curb corruption by limiting direct contacts with public administration officials,” the report notes.

The document also cites corruption, particularly in the judiciary, a lack of transparency in public procurement, and poor enforcement of contracts as continuing problems in Albania.

The report, which is based on the data from the International Monetary Fund (IMF), notes that Albanian economy was hit by the earthquake in November 2019 and the COVID-19 crisis, but the rebound is expected to be fueled mostly by increased consumption and a large post-earthquake reconstruction program.

“The Albanian legal system ostensibly does not discriminate against foreign investors.  The U.S.-Albanian Bilateral Investment Treaty, which entered into force in 1998, ensures that U.S. investors receive national treatment and most-favored-nation treatment. The Law on Foreign Investment outlines specific protections for foreign investors and allows 100 percent foreign ownership of companies in all but a few sectors. Albania has been able to attract increasing levels of foreign direct investment (FDI) in the last decade,” the report highlights.

According to the Bank of Albania data, flow of FDI has averaged USD 1.1 billion in the last six years, and stock FDI reached USD 9.5 billion at the end of 2019. Investments are concentrated in the energy sector, extractive industries, banking and insurance, telecommunications, and real estate. Switzerland, The Netherlands, Canada, Turkey, Austria, and Greece are the largest sources of FDI.

The report notes that implementation of judicial reform is underway and its completion is expected to improve the investment climate in the country.

“To address endemic corruption, the Government of Albania (GoA) passed sweeping constitutional amendments to reform the country’s judicial system and improve the rule of law in 2016. The implementation of judicial reform is underway, including the vetting of judges and prosecutors for unexplained wealth.  More than half the judges and prosecutors who have undergone vetting have been dismissed for unexplained wealth or organized crime ties. The EU expects Albania to show progress on prosecuting judges and prosecutors whose vetting revealed possible criminal conduct. The implementation of judicial reform is ongoing, and its completion is expected to improve the investment climate in the country,” the report concludes.

/u.sh/