Regional cooperation and FDI inflow Docent dr. Maida Bećirović Sarajevo, November 2017

FIPA – Who we are? Foreign Investment Promotion Agency (FIPA): - state Agency - maximize the flow of FDI into Bosnia and Herzegovina - encourage existing foreign investors to expand and develop their businesses in B&H Provide information on: - Legal framework for foreign direct investment - Macroeconomic indicators - Business environment - Investment projects, privatization opportunities, available tenders Support you : - during project implementation: preliminary stage and market research, the business establishment phase, - to organize meetings to the investment location and with relevant projects owners - to organize meetings with relevant ministries or departments at different levels of government -aftercare program

The region is a competition or an opportunity ?! Regional cooperation and FDI inflow The region is a competition or an opportunity ?!

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Prospective EU membership □ Macroeconomic stability □ Strategic geographic location □ Diverse economies □ Favourable taxes □ Low labour costs combined with a relatively educated population

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Prospective EU membership: - all aspire to membership of the European Union - attracting foreign investment will be vital for achieving this goal

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Macroeconomic stability: - high degree of macroeconomic stability - Stable exchange rate regimes (rate immovable vis-à-vis the euro ) - low inflation for many years

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Strategic geographic location: - geographic position between the East and West - easy and free access to EU markets - the Pan-European corridors X, VII and Vc - “One Belt, One Road” initiative

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Operating costs – significantly lower than in EU:

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Favourable taxes:

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Low labour costs combined with a relatively educated population: Unit labour costs

What can the Western Balkans offer investors? Regional cooperation and FDI inflow What can the Western Balkans offer investors? □ Diverse economies: - Energy sector - Agriculture-intensive region - Transport infrastructure - Tourism - Metal sector - Inovation

Regional cooperation and FDI inflow FDI in Western Balkans, mil EUR source: data of states national banks

Top investors countries in the Western Balkans States Regional cooperation and FDI inflow Top investors countries in the Western Balkans States source: data of states national banks

What can the region do, to attract higher levels of FDI? Regional cooperation and FDI inflow What can the region do, to attract higher levels of FDI? - Creating a simple, reliable investment framework... - Administration - service of the economy no obstacle... - Improve competitiveness of our economy... - Strengthen Regional economic cooperation ... - Improve image...

FIPA - Foreign Investment Promotion Agency of B&H

Spa tourism projects in B&H Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner 1 776 235 KM app. 908 171 EUR 681 235 KM app. 348 309 EUR Joint venture VIŠEGRAD SPA, VIŠEGRAD Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner 8.35 million KM ( 4,27 million EUR) 6.9 million KM ( app. 3.5 million EUR) Joint venture, Concession, PPP Spa tourism projects in B&H ЈАHОRINА ЕCО WELLNESS, JAHORINA MOUNTAIN Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   5.8 million EUR Joint venture

SPORTS AND RECREATION CENTRE CAJUŠA, KUPRES Estimated total investment cost Form of cooperation with foreign partner Investment cost of the project will be agreed in collaboration with strategic partner Public Private Partnership JAHORINA 5 * HOTEL Winter tourism projects in B&H Estimated total investment cost Form of cooperation with foreign partner 29.4 million EUR Joint venture SPORTS AND RECREATION CENTRE CAJUŠA, KUPRES Estimated total investment cost Form of cooperation with foreign partner 4.5 million EUR Joint venture

Recreation, Sport and Adventure tourism projects in B&H Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner 2 million EUR 1,600, 000 EUR Joint ventures, sales Recreation, Sport and Adventure tourism projects in B&H HOTEL COMPLEX, HIPPODROME, SPORT & RECREATIONAL CENTRE, ČAPLJINA Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   7 million EUR 5.700.000 EUR Joint venture

Sea tourism projects in B&H TOURISM RESORT “GOLDEN SHELL”, NEUM Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner 50 million EUR 50 million EUR Joint venture Sea tourism projects in B&H

IN BOSNIA AND HERZEGOVINA CONSTRUCTION SECTORC IN BOSNIA AND HERZEGOVINA Balkan Distribution Center, Sarajevo Business & Entertainment Centre, Sarajevo Metalurg City Centre, Zenica New Business-Commercial Centre, Sarajevo Senior Accommodation, Busovaca Trading Centre, VMC Mall, Sarajevo Traffic Business Centre, Sarajevo Young Entrepreneurship Centre RRC Juzni logor, Mostar Residential and business centre EUREKA, Banja Luka FIPA - Foreign Investment Promotion Agency of B&H

REGIONAL BUSINESS - TOURIST AIRPORT, BIHAC Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   12 569 791 EUR 10 558 832.8 EUR Joint venture PPP FIPA - Foreign Investment Promotion Agency of B&H REGIONAL BUSINESS - TOURIST AIRPORT, BIHAC Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   2 525 137.66 EUR Joint venture PPP

FIPA - Foreign Investment Promotion Agency of B&H Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   3 754 000 EUR 2 800 000 EUR Joint venture, Sale FIPA - Foreign Investment Promotion Agency of B&H 2. MULTIPLEX BUSINESS AND ENTERTAINMENT CENTRE, SARAJEVO Estimated total investment cost Inputs required from foreign partner Form of cooperation with foreign partner   30.000.000 EUR 22 500 000 EUR Joint venture

www.fipa.gov.ba Automotive Parts and Manufacturing Availability of research and development institutes 6 Faculties of Mechanics) Quality production – ISO and industry certificates Infrastructure in place and energy sources available at lower costs then in surrounding countries Geographical proximity to automotive manufacturing base in Europe allows foreign investors low distribution costs and “just-in-time” production delivery Constant export growth and reputable customers www.fipa.gov.ba

THANK YOU! FIPA Sarajevo Grbavička 4 Tel: +387 33 278 092 Fax: +387 33 278 081 E-mail: maida.becirovic@fipa.gov.ba www.fipa.gov.ba Banja Luka Ðure Daničića 1/III Tel/ Fax: : ++387 51 226 180 E-mail: banjaluka@fipa.gov.ba Mostar Rade Bitange 30 Tel/Fax: ++387 36 558 815 E-mail: mostar@fipa.gov.ba