Investment Opportunities in Bosnia and Herzegovina Oct 27 th, 2009 Eldin Kajevic Consul General Consulate General of Bosnia and Herzegovina in Chicago

Agenda Introduction to Bosnia and Herzegovina General economic indicators Top investor countries Why invest in Bosnia and Herzegovina Attractive Economic Sectors

Introduction to Language Hello Zdravo Welcome Dobro doshli Good EveningDobro veche

Did You Know? The first tram in Europe ran in Sarajevo in 1885 The first power plant was built in 1895 Europe’s largest livestock producer prior to WWI Capital Sarajevo hosted Winter Olympic games in 1984 The oldest pyramids in the world? Fastest growing GDP in South East Europe

Small Country, Huge Potential! Strategic location Population <4 million Possibility to export to about 600 mill. people market without customs and duties The fastest GDP growth The most stable currency in South East Europe Competitively priced labor force

General Economic Indicators Nominal GDP, billion €

Real GDP growth rate, % General Economic Indicators

Industrial production growth rate, %

General Economic Indicators Annual inflation rate, %

General Economic Indicators Annual unemployment rate, %

General Economic Indicators Total FDI inflow, mill €

General Economic Indicators FDI by Sectors

Top Investor Countries in B&H – Total amount 5.3 billion €

Why Invest in B&H? Stable financial sector Favourable trade and other agreements Favourable legislation Favourable tax and customs system Competitively priced labour force Foreign Investors Support Fund

Stable Financial Factor The lowest inflation in SEE The most stable currency in SEE (EURO, 1KM =0.51 EUR) Large inflow of foreign banks – currently, foreign ownership in private banking sector in BiH is 86% “B2” credit rating with the stable outlook by Moody’s Agency, “B+” rating by Standard and Poor

Trade Agreements Central European Free Trade Agreement (CEFTA) - 30 mill Free Trade Agreement with Turkey - 70 mill Preferential Trade Agreement with EU, 27 countries mill Preferential export regimes with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada Agreements on avoidance of double taxation Agreements on promotion and protection of investments

Favorable Legislation FDI Law National treatment of foreign investors Repatriation of profits Protection against nationalization, expropriation or similar measures Right to freely employ foreign nationals, subject to the labour and immigration laws in BiH Corporation organization There are no citizenship/nationality limitations for partners or the members of the management and supervisory boards

Favorable Tax and Customs System Tax system – Unique VAT rate of 17% – Profit tax is 10% – Favorable incentives and tax exemptions Customs system – Exemption from payment of customs duties for foreign investors – Customs rates 0-15%

Competitively Priced Labor Force Average net wages (2008), € Creative, skilled and educated workforce

Attractive Economic Sectors Energy Sector Agriculture and Food Processing Industry Construction Industry and Infrastructure Tourism Auto-components Industry Wood and Metal Industry ICT

Free and Confidential Service Consulate General of Bosnia and Herzegovina 737 N. Michigan Ave, Suite 820 Chicago, IL Ph:

Thank you! Hvala!