Foreign direct investment (FDI) in Albania rose to 362 million euros in the first quarter of 2025, the highest level ever recorded for that period, driven by strong inflows into real estate, financial services, and the extractive industries.
Economy, Culture and Innovation Minister Blendi Gonxhja said the record inflow marked a significant vote of confidence in Albania’s economic outlook.
“FDI reached a new record in Q1 2025, with 362 million euros flowing in between January and March – the highest ever for this period,” Gonxhja told reporters.
According to official data, the largest share of FDI came from Türkiye (13.8%), followed by the Netherlands (13.5%), Italy (12.7%), Austria (8.6%) and Germany (7.7%).
The real estate sector attracted the largest share of foreign capital, accounting for 28.7% of total FDI. The finance and insurance sectors followed with 20.7%, while the extractive industry drew 14.1%, underscoring its continued appeal to foreign investors. Manufacturing and trade each received 8.8%.
Albania outperformed most Western Balkan peers in FDI inflows relative to its economy in the first quarter of 2025. Serbia, the region’s largest FDI recipient, attracted around 820 million euros in Q1, mainly in automotive and energy sectors. However, when adjusted for population and GDP size, Albania’s 362 million euros represents a stronger per capita inflow.
North Macedonia recorded around 130 million euros in FDI during the same period, Bosnia and Herzegovina about 110 million euros, and Montenegro approximately 95 million euros. Kosovo trailed with 65 million euros, mostly in real estate.
Analysts say Albania’s competitive tax policies, improved infrastructure, and ongoing digital reforms have contributed to its recent investment surge.
FDI plays a key role in supporting job creation, infrastructure development and deeper economic integration with international markets.