This brochure presents an overview of key issues for those considering investing or doing business in Kosovo. The information presented here has been carefully researched, and all efforts have been made to ensure the information is correct and reflects the current situation as of December 2016, unless otherwise stated.
Investment in Kosovo offers a brief look into the history and development of the political, economic and social structures of Kosovo. The newest state in Europe has been gifted with enviable human and natural resources, from minerals to fertile agriculture land, from a young and dynamic labor force to a favorable central location in the region. The combination of these assets demonstrates overwhelming potential for investors and will surely contribute to the growth of the Kosovo economy.
Due to the continuous growth and constant change in Kosovo, it is important to obtain further, current information before making any investment decision. We would appreciate the opportunity to assist you in planning and implementing your investment in Kosovo.
For further information or inquires on any matters discussed in this publication, please feel free to contact us.
FAST KEY FACTS
10,908 sq. km
53% agriculture, 41% forests
1,815,606 (est. 2012 Kosovo Agency of Statistics)
Average Monthly Labor Costs
EUR 360 (skilled and well educated work force, 2012 est.)
Pristina (est. population 205,133)
Official Languages Albanian, Serbian Currency
Source: KIESA – Kosovo Investment and Enterprise Support Agency.
A BRIEF HISTORY OF KOSOVO
At the heart of the Balkans, Kosovo was part of the Roman Empire, then Byzantium, and part of the Ottoman Empire in the early 15th century. Kosovo became part of Serbia prior to the First World War, and part of Yugoslavia just after it. In the Socialist Federal Republic of Yugoslavia (SFRY), Kosovo enjoyed a certain degree of autonomy from 1974 to 1989. The SFRY began to break up during the early 1990's with Slovenia, Croatia and Bosnia and Herzegovina breaking away from the state. During 1998 the Serbian police and military took a brutal campaign against ethnic Albanians in Kosovo which lead Kosovo in the war.
During this campaign over 800,000 ethnic Albanians were expelled by force from their homes in Kosovo and tens of thousands of people were killed.
As a result of the brutal campaign and ethnic cleansing the International community attempted a settlement at the Rambouillet Accords, which offered autonomy for Kosovo alongside a NATO presence. Serbia's failure to agree led to 78 days aerial bombing on the Federal Republic of Yugoslavia (F.R.Y.).
UN Security Council Resolution 1244 (1999) placed Kosovo under a transitional ad- ministration, the UN (Interim Administration) Mission in Kosovo (UNMIK). Under the resolution, Serbia's territorial integrity was protected, but it was UNMIK that assumed responsibility for governing Kosovo. KFOR, the NATO-led peace implementation force, provided military security in Kosovo.
In 2001, UNMIK promulgated a Constitutional Framework, which established Koso- vo's Provisional Institutions of Self-Government (PISG). A UN-led process began in late 2005 to determine Kosovo's future status. Negotiations held intermittently between 2006 and 2007 on issues related to decentralization, religious heritage, and minority rights failed to yield a resolution between Serbia's willingness to grant a high degree of autonomy and the Albanians' call for full independence for Kosovo. On February 17, 2008, the Kosovo Assembly declared its independence from Serbia, which was recognized by the USA, the majority of EU countries and other nations. Since then, the Republic of Kosovo has been an independent, sovereign and democratic country and a potential candidate for European Union (EU) membership.
In recent years, the country has accelerated its integration process into the EU, inabilization and Association Agreement (SAA), signed on 27 October 2015 and entered into force the 1 of April 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.