Bulk of Foreign Investments Concentrated in Energy Sector

TIRANA, October 4

About 60 percent of foreign investments during the second quarter of 2016 were concentrated in major energy projects. Data issued by the Bank of Albania (BoA) confirm an increase in investments related to this sector. Translated into figures, direct foreign investments for Q2 reached a value of Euro 261 million, which is 37 percent higher compared to Q1 and 24percent more than the same period of 2015.
On the other hand, a drastic decrease of investments in the extracting industry was noticed during the last two years. This was the sector that previously had the major FDI concentration.
Concerning this sector, BoA has not unveiled concrete data due to confidentiality reasons. Thus, it seems that one single company may be responsible for this situation. Moreover, it is estimated that investments in the extracting sector decreased by Euro 30 million.
This is the lowest value since 2014. The major company operating in this sector, Bankers Petroleum reduced investments due to the drop in oil price in stock markets. Reduced investments may have been related to the fact that the company sold its shares to a Chinese company, a process that was concluded in late September.
On the other hand, the financial sector was another field that had major importance for attracting foreign investments. FDI in this sector during Q2 reached a value of Euro 25 million and they were mostly related to additional capital injection in second-tier banks by foreign groups that own them.

News Source: Scan TV

Photo Credit: PM’s Office