Over the last decade, Albania has witnessed a remarkable transformation in foreign direct investment (FDI), both in terms of volume and structure. Between 2014 and 2024, FDI inflows to Albania surged from around €869 million to over €1.5 billion, marking an increase of more than 80% and reflecting an average annual growth rate of nearly 6%. This growth underscores Albania’s rising appeal as an investment destination in the Balkans and Europe.
According to a recent analysis by Scan Intel, the evolution of FDI in Albania over the past ten years goes beyond simple numerical growth. The profile of investors and the sectors attracting foreign capital have shifted significantly, demonstrating Albania’s increasingly diversified economic landscape.
In 2014, the FDI landscape in Albania was dominated by countries such as Greece, the Netherlands, Switzerland, and Turkey. These countries accounted for the bulk of capital inflows, reflecting historical trade and investment relationships. Over the years, however, these dynamics changed substantially.
Italy, in particular, emerged as a major player in Albania’s FDI landscape. From 2020 onwards, Italian investments showed steady growth, reflecting stronger economic ties between the two countries. The rise of Italy as a leading investor demonstrates how regional partners are increasingly turning to Albania as a hub for strategic investments in key sectors.
Kosovo’s emergence is another remarkable story. From an almost negligible contributor in 2014, Kosovo became a significant investor by 2024, injecting over €95 million into the Albanian economy. This rise highlights how smaller neighboring countries can quickly become influential investors, given the right economic and political conditions.
Turkey and Germany also increased their investment presence in Albania, particularly in the period 2023–2024, introducing fresh capital to sectors such as infrastructure, energy, and services. Meanwhile, Greece saw a decline in its relative influence compared to the start of the decade, while the Netherlands remained an important but fluctuating source of global capital.
The sectoral distribution of FDI in Albania has also evolved. Earlier investments were concentrated in a few traditional sectors, but recent years show increasing diversification. Technology, renewable energy, and infrastructure projects now attract a growing share of foreign capital, indicating that Albania is positioning itself as an attractive destination for forward-looking, high-growth investments.
This decade-long transformation offers several lessons for policymakers and investors. First, sustained economic reforms, political stability, and a favorable regulatory environment are critical to attracting FDI. Second, the shifting profiles of investors highlight opportunities for new entrants to play an influential role. Third, sectoral diversification is key to long-term economic resilience, reducing dependency on a few industries and fostering innovation-driven growth.
Looking ahead, Albania is well-placed to continue this upward trend. Strategic incentives, targeted economic policies, and continued investment in infrastructure and human capital could see FDI surpass €2 billion in the next decade. By embracing a diversified investment strategy, Albania can strengthen its position in the regional and global economy.
In conclusion, Albania’s foreign direct investment landscape has changed dramatically between 2014 and 2024. From €869 million to over €1.5 billion in inflows, the country has experienced both quantitative growth and qualitative shifts in investor origin and sector focus. The increasing roles of Italy and Kosovo, alongside growing investments from Turkey and Germany, illustrate Albania’s rising attractiveness for global investors. With continued reforms and strategic planning, Albania is poised to build on this success and secure a strong investment future.