Q:
A:
Foreign direct investments necessary for Serbia's development
Belgrade,
2 June 2008
Serbian Deputy Prime Minister Bozidar Djelic stated that Serbia must attract more foreign investments in the upcoming years, increase exports and provide better living standards for citizens.
Predrag Bubalo and Bozidar Djelic
Author:
Tanjug
At the presentation of the brochure "Largest Foreign Investors in Serbia“, he stressed that everyone in Serbia agrees that the country will be strong if it is open for investments from all over the world and for trade with the whole world.
He said that investment today means jobs tomorrow, export and pensions soon, noting that since 2000 Serbia has become a magnet for investments in the Balkans, pulling in €9 billion in foreign investments.
The pace until 2003 was over $1 billion per year, so now we have a substantial base of foreign investors who are the country's greatest ambassadors in the world.
He also said that foreign investments this year are affected by political risk and a more difficult economic situation in the world, which is why Serbia saw its first unsuccessful privatisations.
Since 2006 only 17% of investments were made in the only industry which can ensure export in the future, whereas 40% of funds were invested in the financial sector, 22% in telecommunications, 10% in real estate and 8% in trade, specified Djelic.
Apart from income tax reduction, in the next several years Serbia must seriously deal with construction licences, draft a modern law on trade and attract investors from new developing markets such as the Chinese, Indian and Middle East markets, he said.
Minister of Trade Predrag Bubalo stressed that in order to attract investors, the key thing is to ensure a stable political situation and let investors know that laws and contracts are well respected in Serbia.
Bubalo stressed that investments should be two-way, as well as that investments by Serbian companies in neighbouring countries considerably increase their rating in the course of privatisation and recapitalisation. He added that the best recommendation to new investors is the satisfactory experience of those who are already in Serbia.
He said that investment today means jobs tomorrow, export and pensions soon, noting that since 2000 Serbia has become a magnet for investments in the Balkans, pulling in €9 billion in foreign investments.
The pace until 2003 was over $1 billion per year, so now we have a substantial base of foreign investors who are the country's greatest ambassadors in the world.
He also said that foreign investments this year are affected by political risk and a more difficult economic situation in the world, which is why Serbia saw its first unsuccessful privatisations.
Since 2006 only 17% of investments were made in the only industry which can ensure export in the future, whereas 40% of funds were invested in the financial sector, 22% in telecommunications, 10% in real estate and 8% in trade, specified Djelic.
Apart from income tax reduction, in the next several years Serbia must seriously deal with construction licences, draft a modern law on trade and attract investors from new developing markets such as the Chinese, Indian and Middle East markets, he said.
Minister of Trade Predrag Bubalo stressed that in order to attract investors, the key thing is to ensure a stable political situation and let investors know that laws and contracts are well respected in Serbia.
Bubalo stressed that investments should be two-way, as well as that investments by Serbian companies in neighbouring countries considerably increase their rating in the course of privatisation and recapitalisation. He added that the best recommendation to new investors is the satisfactory experience of those who are already in Serbia.
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