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Foreign Direct Investment
It would be an understatement to say that Kosovo is somewhat unique in the world of investment opportunities. Its undecided political status creates considerable uncertainty, anathema to investors, which is only exacerbated by its poor economic performance, all-too-often troubled relationships with its regional neighbors, and its landlocked geographic position. However, the changes that are underway in Kosovo create opportunities that could encourage foreign investors provided that the return is attractive when compared to their other options and the risks they are taking.
The need for increased foreign investment in Kosovo requires no elaboration. Furthermore, there has been little debate in Kosovo about the utility of a foreign investment law aimed at making Kosovo more attractive to outside investors. UNMIK promulgated the current investment legislation in early 2001 and the Government is now drafting its own law which will provide certain incentives to investors. Despite this, better foreign investment laws are unlikely to have much impact on the quality or quantity of foreign investment in Kosovo. Political resolution of Kosovo’s status, improved economic outlook, and better promotion of Kosovo’s investment opportunities will.
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