TIRANA, August 17
The Albanian capital remains the favorite destination for foreign companies and joint ventures that decide to relocate to the country. Based on the data provided by the National Business Center, about 65.7 percent of foreign companies are based in Tirana, Scan TV reported. According to the National Business Center, 6,443 companies out of a total of 155,900 enterprises are fully foreign-owned companies or joint ventures.
Meanwhile, the Municipality of Tirana confirmed that 4,232 foreign companies operate in the Albanian capital. The reasons why foreign companies choose Tirana over other Albanian cities depend on various factors.
Great location and connectivity
Located at the crossroad of the main trade and shipping routes, including Albania’s only Airport, Tirana takes great advantage of its location. Many entrepreneurs or business people looking for new relocation opportunities have the chance to reach the city through direct flights from many European capitals and major hubs.
Access to the skilled and multilingual labor force
Some of the best public and private universities in Albania are located in the capital city. This means that thousands of students from all over the country move every year to Tirana. The city is highly attractive to students and young professionals. Besides well-educated, the population in the capital city is also multilingual. English and Italian are widely spoken.
Among the most economical nearshore BPO destinations in Europe
Given that the majority of foreign/joint ventures in Tirana operate in the sectors of trade, consulting, accounting and finance, and Information and Communication Technology (ICT), the Albanian BPO sector holds a bright future. Workforce availability, affordable costs, and geographical proximity make Tirana a prominent BPO destination not only in the country but in the region as well.
Investment friendly for ICT companies
Compared to the other countries in the Western Balkans, Albania has the lowest corporate income tax rate (5 percent) for all companies whose activity is software production and development. As was mentioned above, the capital city offers access to the large talent pool of professionals. In the meantime, the impact of the COVID-19 pandemic in the sector was nonexistent, given the high capability of the sector to operate remotely conforming to all security requirements.
Underdeveloped startup ecosystem
Even though engineering talent is in Tirana, overall, Albania is currently behind in terms of startup activity. Missing skills can be imported or developed within the local market. Meanwhile, old economic models that are considered pretty much outdated hopefully will be soon replaced with new economic models especially those focused on Research and Development. Tirana, like Pristina, offers great potential for anyone that would like to start a business, especially in technology.