In last several years investments in Bosnia and Herzegovina are dramatically increasing. The biggest growth is in real estate sector in which huge part of investors are people from Arabian countries. Obviously, they …show more content…
According to one research, country’s property increases in value constantly – despite a succession of wars, disasters, recessions and crises. Also, you don’t need specialist knowledge to start investing in property, so, it is relatively easy to get started. When it comes to research, it is much easier to research this sector than stocks and shares for example. Other reasons include easier financing, control, possibility to develop, flexibility of the price, tax breaks and benefits, etc.
Why they decide to invest in Bosnia and Herzegovina? Well, despite Bosnia and Herzegovina is developing country, it is also a country that has an excellent geographical and strategic position on the road between East and West, the Continent and the Mediterranean, a country that possesses the attractive location, the natural resources, the tradition of industrial quality and well-developed trade.
Bosnian companies have rich tradition in successful participation in international projects worldwide, as well as in education and capable labor. Advantages of investing in Bosnia and Herzegovina are: economy open to EU, stable domestic currency BAM pegged to Euro, lowest level of inflation in Southeastern Europe, low costs of distribution and „in-time“ production delivery, product quality- ISO and industry …show more content…
Year later, 2008, the inflow of FDI was 684 million euros, without the expected privatization can be considered satisfactory, especially if we take into account its positive structure (investment in the manufacturing sector and a high share of greenfield investments).
The global economic crisis that occurred in 2009 has contributed to a significant reduction in investment in Bosnia and Herzegovina. Still, in the following two years, 2010 and 2011 the positive trend of FDI was registered. Unfortunately, despite the promising evaluation, FDI flows in 2012 and 2013 did not keep a positive trend (in 2012 there was a decrease of the DSU 14% compared to 2011). Foreign direct investment in 2013 amounted to 208 million euros, which is 32.3% less than investments in 2012.
Data of the Central Bank shows that investments in 2014 amounted to 399 million euros, which is an increase of 91.6% compared to 2013. At 31 Dcember 2015, the total foreign investments in BiH from 12,201.1 million, relating to the ownership shares and retained earnings in the amount of 8,991.7 million (4,597.4 million euros), while 3,209.4 million (1,640.9 million euros) other