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

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

3. Introduction to Language Hello Zdravo Welcome Dobro doshli Good EveningDobro veche

4. 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

5. 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

6. General Economic Indicators Nominal GDP, billion €

7. Real GDP growth rate, % General Economic Indicators

8. Industrial production growth rate, %

9. General Economic Indicators Annual inflation rate, %

10. General Economic Indicators Annual unemployment rate, %

11. General Economic Indicators Total FDI inflow, mill €

12. General Economic Indicators FDI by Sectors - 1994 - 2008

13. Top Investor Countries in B&H 1994 - 2008 – Total amount 5.3 billion €

14. 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

15. 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

16. Trade Agreements Central European Free Trade Agreement (CEFTA) - 30 mill Free Trade Agreement with Turkey - 70 mill Preferential Trade Agreement with EU, 27 countries - 500 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

17. 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

18. 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%

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

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

21. Free and Confidential Service www.fipa.gov.ba Consulate General of Bosnia and Herzegovina 737 N. Michigan Ave, Suite 820 Chicago, IL 60611 Ph: 312-951-1245 www.cgbhchicago.com

22. Thank you! Hvala!