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FDI in Figures | Why You Should Choose to Invest in Macedonia | Procedures Relative to Foreign Investment | Investment Opportunities

FDI in Figures

Foreign direct investment in Macedonia is estimated at about USD 600 million. The main foreign investing country is Austria followed by Hungary, Greece and Cyprus. Investments from the countries that were formerly part of Yugoslavia are small in relation to their commercial presence in the country.

Globally, FDI is weak in Macedonia compared to its neighboring countries. Nevertheless, the share of FDI has increased in 2009 and 2010, but it would be convenient to the country to consolidate its image at an international level if it hopes to attract more FDI.

 

Country Comparison For the Protection of Investors

  Macedonia (FYROM) Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 9.0 6.3 7.0 5.0
Index of Manager’s Responsibility** 7.0 4.0 9.0 5.0
Index of Shareholders’ Power*** 4.0 6.2 9.0 5.0
Index of Investor Protection**** 6.7 5.5 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
 
Foreign Direct Investment 200720082009
FDI Inward Flow (million USD) 320--
FDI Stock (million USD) 3,084--
Performance Index*, Ranking on 141 Economies 324460
Potential Index**, Ranking on 141 Economies 99100-
Number of Greenfield Investments*** 92218
FDI Inwards (in % of GFCF****) 43.727.971.4
FDI Stock (in % of GDP) 47.246.551.9

Source: UNCTAD - Last Available Data.

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.

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Why You Should Choose to Invest in Macedonia

Strong Points
The country has great advantages: 
- Salaries are low and there is high-quality workmanship;
- The country has a stable democracy;
- The procedures to create an enterprise are fast and uncomplicated;
- Geographically, the country enjoys an excellent location, it is a meeting point connecting the roads of Europe;
- The country's government has put in place several reforms in order to attract foreign investors.
Weak Points
Due to the economic crisis, the growth rate is very low and the inflation is strong. In addition, the country is again facing corruption and it has a significant foreign debt.
Government Measures to Motivate or Restrict FDI
The country's government has issued laws that provide to foreign investors the same rights as to the national ones. Macedonia proposes to investors a free trade zone for purchasing and selling merchandises, a tax deduction on profits for three years, subsidies for job creation, fast procedures to  private property access, etc.
Bilateral Investment Conventions Signed By Macedonia
Macedonia is a member of ALECE (Central European Free Trade Agreement) since 2000.

The country has also signed agreements of free trade with Turkey and Ukraine.

In 2001, Macedonia signed with the European Union an Association and Stabilization agreement and since 2005 the country has been recognized as a candidate state to the European Union.

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Procedures Relative to Foreign Investment

Freedom of Establishment
Yes.
Acquisition of Holdings
Possible.
Obligation to Declare
It is mandatory that all enterprises declare their activities.
Competent Organization For the Declaration
Chamber of Commerce (in Macedonian)
Requests For Specific Authorizations
The country allows all type of investors without marketing restrictions.
 
Learn more about Foreign Investment in Macedonia on Globaltrade.net, the Directory for International Trade Services.
 

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Investment Opportunities

Investment Aid Agency
Investing in Macedonia
Tenders, Projects and Public Procurement
Tenders Info, Tenders From Macedonia
 Globaltenders, Tenders & Projects from Macedonia
 DgMarket - Tenders Worldwide, Choose your country
Other Useful Resources
Ministry of Economy
 Ministry of Foreign Affairs
 National Agency of Entrepreneurship.

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Learn more about Investing in Macedonia on Globaltrade.net, the Directory for International Trade Services.
 

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Last Updates: January 2012