Belarus

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Investing in Belarus

FDI in figures | Why you should choose to invest in Belarus | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

The tendency towards increase in the inflowing foreign capital has emerged in the recent years. For instance, over USD 5 billion of foreign investments were channeled to the Belarusian economy in 2002 – 2005. USD 1.8 billion of foreign investments were attracted in 2005, with the quarter of them being direct foreign investments (about USD 0.5 billion). The five main investor-countries include Russia, Switzerland, Austria, Germany and Latvia.
Nearly 3 thousand companies founded with involvement of investors from 77 countries operate in Belarus. 87 investment projects are being implemented in various sectors of economy with the foreign capital participation. Machine-building and metal-working, consumer goods, chemical and petrochemical, woodworking and also trade, communication, transport and medical sectors are most attractive for foreign investors in Belarus.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	305	354	1,772
FDI stock (millions USD)	2,383	2,734	4,500
Performance Index*, ranking on 141 economies	117	122	95
Potential Index**, ranking on 141 economies	47	48	-
Number of Greenfield investments***	11	21	19
FDI inwards (in % of GFCF****)	3.8	3.2	12.9
FDI stock (in % of GDP)	7.9	7.4	10.0

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Belarus

Strong points: -Advantageous geographical position, the country can be a point of entry into Europe and the countries of the Commonwealth of Independent States (CIS).
-Many measures favorable to direct foreign investments
-Political and economica stability
-Qualified and cheap labour
For more informations go to the National Investment Agency website
Weak points: -Communist country with dictatorial character
-Heavy corruption and administration
- Weak infrastructure
-Russian influence
For more information go to the National Investment Agency website.
Government measures to motivate or restrict FDI: The government has implemented a number of measures to provide investor protection; it has created six duty-free zones in the country and set up an Investment Advising Office as well as the National Investment Agency. For more information go to the National Investment Agency website.

Procedures relative to foreign investment

Freedom of establishment: The country is open to direct foreign investment but a number of sectors are still managed by the State, such as the energy distribution sector. For more information go to the National Investment Agency website.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Belarus. For more information go to the National Investment Agency website.
Obligation to declare: The World Association of Investment Promotion Agencies in the country provides information about authorisations necessary for establishment of businesses.
Competent organization for the declaration: National Investment Agency website
Requests for specific authorizations: In this country, where admistration rules all, many sectors require a specific authorisation. For more information, go to the website of the National Investment Agency.

Finding assistance for further information

Investment aid agency: Investment Opportunities of the Republic of Belarus
Other useful resources: National Investment Agency

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