Kosovo

Political, legal, administrative

aspects

SourceDie Welt in Bildern. Eine Bildauswahl der NZZ-Redaktion.February 17th, 2011.

Kosovo celebrates year 3 of its independence

Sourcehttp://www.nzz.ch/nachrichten/politik/international/jahjaga_zu_neuer_praesidentin_des_kosovo_gewaehlt_1.10170146.html

Ms. Atifete Jahjaga, President of Kosovo

The gender equality is one of the fundamental values of democratic development of society of Kosovo.

Source: http://www.rks-gov.net/en-US/Qytetaret/Familja/Pages/BaraziaGjinore.aspx

Tax Percentage

Personal income tax 0 – 10%

Value added tax 16%

Corporate income tax 10%

Source: http://www.eciks.org/english/publications/Top10_2010_Web.pdf

Taxes in Kosovo

Comparison of tax systems in the region

Source: http://www.eciks.org/english/publications/investorsguide09.pdf, p. 34.

Economic aspects

In 2008, there were 87,960 small and medium enterprises (SME).

About 47% of these are engaged in trade industry.

Source: http://www.ipak-vienna.org/repository/docs/investorsguide.pdf

The Trepca and Ferronickel conglomerates employ, together, more than 12,000 people.

Source: http://www.invest-ks.org/?cid=2,45

The Ferronikeli nickel plant in Kosovo is supplied with nickel ore from the group’s mines in the country, as well as imports of third party ore from Albania, and supplemented with other ore to optimise blends and production.

In 2006, Cunico Resources acquired Ferronikeli. Cunico Resources is incorporated under Dutch law as the holding company for a joint venture operation owned equally by International Mineral Resources, Zürich, and BSGR, two strategic investors in the metals and mining industry. IMR is owned by the Eurasian Natural Resources Corporation (ENRC).

Sourceshttp://www.eciks.org/english/lajme.php?action=total_news&main_id=618 http://www.bsgresources.com/ http://www.cunicoresources.com

Ferronikeli

Source: http://www.eciks.org/english/publications/investorsguide09.pdf

Some foreign companies in Kosovo

Naturalresources

lead

chromekaolin

zinc

bauxite

magnesium

nickel

lignite

Source:http://www.eciks.org/english/publications/investorsguide09.pdf

World lignite reserves

At 14.700 million tonnes, Kosovo possesses the world’s 5th largest proven reserves of lignite.

This mineral is of outstanding importance for the country, representing in a long term one of the most crucial factors for the power generation.

Source:http://www.invest-ks.org/?cid=2,44 http://www.pak-ks.org/?id=20

6 million m3 of Onyx Marble in Istog. Large amounts of White and Gray Marble in Rahovec. Very high amount of Black Marble in Rugova Gorge. Gray Granite of Shipashnica is about 16.5 million m3. Breccia Marble quarry in Decan has over 420,000 m3 and 2,400 000 m3 in Gadime near Lipjan.

Other decorative stones such as Gneiss, Andesite, Magnesite, Serpentite, Quarzite, Trachyte, Porphyry etc., are available in large amounts.

Decorative stones

Source: http://www.invest-ks.org/?cid=2,47

Source: http://www.eciks.org/english/publications/investorsguide09.pdf, p. 20.

Top 6 exports

Agriculture

Agriculture contributes 19% to the GDP and is the main source of income for the majority of the population.

Source: http://ipak-vienna.org/repository/docs/investorsguide.pdf

Dairy farm structure

Sourcehttp://www.euroqualityfiles.net/AgriPolicy/Report%202.1/Kosovo%20Agripolicy%20D2-1.pdf

Sourcehttp://www.euroqualityfiles.net/AgriPolicy/Report%202.1/Kosovo%20Agripolicy%20D2-1.pdf

Largest companies in Kosovo dairy market

Dairy sector efficiency

Sourcehttp://www.euroqualityfiles.net/AgriPolicy/Report%202.1/Kosovo%20Agripolicy%20D2-1.pdf

Sourcehttp://ipak-vienna.org/repository/docs/investorsguide.pdf http://www.pak-ks.org/?id=20http://www.eciks.org/english/publications/investorsguide09.pdf

Long wine making tradition in Kosovo

Financial industry

8 licensed banks of which 6 are foreign-owned. 2 pension funds. 19 other financial intermediaries. 28 financial auxiliaries. 10 insurance companies.

Sourcehttp://www.eciks.org/english/publications/Top10_2010_Web.pdf

Financial industry in Kosovo

Banks

Source: http://www.ipak-vienna.org/repository/docs/investorsguide.pdf

Procredit Bank arrived in Kosovo in 2000 and is now a leading player with more than 40% share of the market and more than 300,000 customers.

Sourcehttp://www.kosovotimes.net/kosovo-pdf-library-download-section/doc_download/49-republic-of-kosovo-a-realm-of-golden-investment-opportunities.html

Insurance companies in Kosovo

Sigal. Siguria. Vienna Insurance Group – SIGMA. Took over TBIH stakes in insurance companies in 2009. Sigkos. Dukagjini. Dardania. Croatia Osiguranje. INSIG Tirana. Kosova E Re.

Sourceshttp://www.uniqagroup.com/uniqagroup/cms/eng/press/press_release/archive/2007/pae_albanien.jsphttp://www.ks-siguria.com/siguria/siguria/index/26 http://www.kosovotimes.net/kosovo-pdf-library-download-section/doc_download/49-republic-of-kosovo-a-realm-of-golden-investment-opportunities.html

Insurance companies

Source: http://www.ipak-vienna.org/repository/docs/investorsguide.pdf

The automobile sector again dominates the market taking up a share of 57%. Currently only one single company offers life insurances.

Sourceshttp://www.uniqagroup.com/uniqagroup/cms/eng/press/press_release/archive/2007/pae_albanien.jsp

Infrastructure

There is an opportunity to construct a highway in Kosovo worth 1.17 billion euros and Turkish companies can participate in such construction.

Zafer CaglayaTurkish State Minister

Sourcehttp://www.turkishweekly.net/news/78512/turkish-minister-there-are-serious-business-opportunities-in-kosovo.html

SourceSwedish Trade Council, June 2009.http://www.swedishtrade.se/PageFiles/136620/About%20Kosovo%20-%20Fact%20Pack%20-%20Juni%202009.pdf

IT andtelecommunications

From being inexistent 10 years ago, Kosovar companies in the IT sector offer today high quality services and the latest technologies to their customers both locally as well as to foreign companies who want to outsource their software development or support centres.

Sources: http://ipak-vienna.org/repository/docs/investorsguide.pdf

Internet market

Companies Kujtesa. Owned by Slovenian Telecom. IPKO (2008 revenue: EURO 41 million). Dardanet. Subsidiary of Post and Telecom of Kosovo (PTK).

Size of marketEUR 10 Million per year.

Sourceshttp://www.invest-ks.org/?cid=2,89 http://www.kosovotimes.net/kosovo-pdf-library-download-section/doc_download/49-republic-of-kosovo-a-realm-of-golden-investment-opportunities.html

Source: http://www.invest-ks.org/?cid=2,89

According to the latest figures of the Telecommunication Regulatory Authority (TRA) only about 15,3% of the Kosovars use internet on a regular basis.

Sourceshttp://www.eciks.org/english/invest.php?action=total_invest&main_id=15 http://ipak-vienna.org/repository/docs/investorsguide.pdf http://www.kosovotimes.net/kosovo-pdf-library-download-section/doc_download/49-republic-of-kosovo-a-realm-of-golden-investment-opportunities.html

Kosovo has 2 mobile telephony operators, with over 200 million Euro investment by the Slovenian Telecom for one of them.

The state-owned mobile telephony operator VALA with over 850,000 users will be available for privatization soon.

Textile industry

Currently, there are some 451 private companies engaged in textile production.

Of these, 90% are final product producers. 

Source:http://www.eciks.org/english/publications/investorsguide09.pdf, p. 14.

Sports

Sourceshttp://ipak-vienna.org/repository/docs/investorsguide.pdf http://www.invest-ks.org/?cid=2,48 http://en.wikipedia.org/wiki/Kosovo

The mountainous south of Kosovo hasgreat potential for winter tourism. One of the most interesting opportunitiesfor foreign investors in this region is the skiing resort Brezovica in the Sharr Mountains.

The resort, situated between 1,700 and 2,500 meters above sea level, has been offered for privatization by the Kosovo Trust Agency. It offers excellent weather and snow conditions as well as long ski seasons from November to May.

Publicly owned

companies

Kosovo Energy Corporation JSC (KEK). Transmission System and Market Operator JSC (KOSTT). Post and Telecommunications of Kosovo JSC (PTK). Kosovo Railways JSC. Kosovo Landfill Management Company JSC. HPE Iber Lepenc JSC. Radio Television of Kosovo (RTK). Pristina International Airport JSC. Given by way of concession to the Limak-Airport.

Publicly owned companies in Kosovo

Source:http://www.eciks.org/english/publications/LegalGuide_2010_Web.pdf, p. 9.JSC = Joint Stock Company.

Kosovo's citizens are the poorest in Europe, with an average annual per capita income of approximately USD 2,750.

About 45% of the population are unemployed.

Source: http://www.state.gov/r/pa/ei/bgn/100931.htm

Cultural aspects

Population 2.2 Million

70% under 35 years old

Groups in population 88% Albanians

7% Serbs

5% other

Sourceshttp://www.rks-gov.net/

https://www.cia.gov/library/publications/the-world-factbook/geos/kv.html

http://www.guardian.co.uk/country-profile/kosovo

http://www.eciks.org/english/invest.php?action=total_invest&main_id=15

http://www.invest-ks.org/?cid=2,10

http://www.kosovotimes.net/kosovo-pdf-library-download-section/doc_download/49-republic-of-kosovo-a-realm-of-golden-investment-opportunities.html

With an average age of 25 years, Kosovo has the youngest population in Europe.

Source: http://www.eciks.org/english/publications/Top10_2010_Web.pdf

Population density

Source: http://www.asecu.gr/Seeje/issue05/beilock.pdf, p. 228

Kosovar diaspora

Every person who has legal and regular residence outside Kosovo, but who was born in Kosovo, and has close family and economic relations in Kosovo, is considered a member of Kosovar Diaspora.

Source: http://www.rks-gov.net/en-US/Qytetaret/Mergata/Pages/KthimiTrurit.aspx

Definition

Residence of kosovar diaspora Percentage

Germany 49%

Switzerland 24%

Source: http://www.hslu.ch/amir_haxhikadrija_e.pdf

The Kosovar diaspora are about

30% of the Kosovo population.

Source: http://www.hslu.ch/amir_haxhikadrija_e.pdf

Remittances from the kosovar diaspora - located mainly in Germany, Switzerland, and the Nordic countries - are estimated to account for 13% - 17.5% of GDP.

The GDP of Kosovo is USD 5.3 Billion.

Sources:https://www.cia.gov/library/publications/the-world-factbook/geos/kv.html http://www.hslu.ch/amir_haxhikadrija_e.pdf

74% of Kosovo-Albanians in Switzerland aged 23 and 24 hold no more than a compulsory school diploma.

Source: http://www.hslu.ch/amir_haxhikadrija_e.pdf

Geographical aspects

Source: http://www.eciks.org/english/publications/investorsguide09.pdf, p.42.

Traveling distances from Prishtina to major regional centres

Sourceshttp://www.guardian.co.uk/country-profile/kosovohttp://www.flickr.com/photos/kosovakid/182689634/in/set-72057594126115415/ http://www.flickr.com/photos/kosovakid/140469090/in/set-72057594126115415/

Gjeravica 2,565 metres