FIPA BiH

1
Director Haris Bašic
2
FIPA SUPPORT

• Servicing potential and existing investors,
  especially during the process of business
  registration
• Legal advises for foreign investors
• Providing of all information related to BiH
  business environment
• Investors after-care
• Policy advocacy
• Analysis and presentation of attractive sectors
  for foreign investments
• Good co-operation with all levels of Government
  in BiH

OUR SERVICES ARE FREE AND CONFIDENTIAL!
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Bosnia and Herzegovina facts and figures

• Located in the West Balkans SE Europe
• Territory 51,209 sq.km
• Territorial units
• two entities Federation BH
• Republika Srpska
• one district Brcko District BH
• Climate continental, sub-continental,
  Mediterranian
• Population about 4 million

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GENERAL ECONOMIC INDICATORS (2000 2005)  
Indicators 2000 2001 2002 2003 2004 2005
  GDP, billion 5,6 6,1 6,5 6,8 7,5 8,0
  GDP per capita, 1.475 1.603 1.690 1.778 1.950 2.095
  Real GDP growth rate, 5,5 4,5 5,5 3,0 6,0 7,5
  Industrial production growth rate, 8,8 12,2 9,2 4,8 9,0 10,0 1
  Annual inflation rate, 4.8 3.1 0.4 0.6 0.4 3.7
  Annual unemployment rate, 39,7 40,3 40,9 42,0 47,2 31,1 2
  Average monthly net salary, 190 209 228 247 258 275
  Foreign reserves, million 522 1.378 1.260 1.422 1.768 2.144
TOTAL FDI INFLOW million 159 140 309 338 3 618 421 3
Source Central Bank BH, MOFTER 1 Statistical
offices in BH produce only data for Industrial
Production Growth rate on entity levels.
Therefore, BH Industrial Production Growth rate
is estimation. 2 The Labour Force Survey was for
the first time carried out in April 2006, as an
annual survey 3 Source Central Bank BH
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SARAJEVO AND BANJA LUKA STOCK EXCHANGE

In
Million EUR
Turnover (EUR) 2002 2003 2004 2005 I-VI 2006 TOTAL
The Sarajevo Stock Exchange 21,31 60,79 102,84 283,95 91,58 560,47
Banja Luka Stock Exchange 3,75 37,08 51,54 142,19 64,04 298,60
  Sources SASE Sarajevo Stock Exchange and
Banja Luka Stock Exchange
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MAJOR FOREIGN TRADE PARTNERS (2005)
TOP INVESTOR COUNTRIES IN BIH (1994 2005)TOTAL
AMOUNT 2.2 billions
Country Volume (in 000 )
TOTAL 100 7.621.480
CROATIA 21,8 1.664.393
SERBIA MONTENEGRO 12,7 973.928
GERMANY 11,5 881.988
SLOVENIA 10,1 773.978
ITALY 9,4 718.815
AUSTRIA 6,1 465.421
HUNGARY 4 307.059
SWITZERLAND 2,3 182.161
TURKEY 1,9 150.529
UNITED KINGDOM 1,7 131.454
CZECH REPUBLIC 1,6 128.474
UNITED STATES 1,6 123.258
POLAND 1,4 112.735
RUSSIAN FEDERATION 1,4 110.604
FRANCE 1,3 102.950
TOP 15 90 6.827.748
294,00 281,21 252,58 221,39 201,45 151,85 50,11 39
,37 39,37 29,65
Austria
Croatia Lithuania
Netherlands Antili Slovenia
Germany
Netherlands Serbia and Montenegro Switzerland Ital
y
milion
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FDI in BiH by sectors (May 1994 June 30,
2006)
Source Central Bank of BiH, MOFTER
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Source MOFTER
Top 20 Foreign Investment 1994- June, 2006
(million EUR)
No Foreign Investor Home Country Host Company Amount
1 Uždaraji Akcione Bendrove U.B. Investicine Grupe Lithuania Tvornica glinice "BIRAC" AD-Zvornik 238.05
2 Mittal Steel Holding V.V. Hol. Antili "Mittal Steel Zenica" d.o.o. Zenica 192.11
3 Hypo Alpe-Adria-Bank AG Austria   111.76
  "Hypo Alpe-Adria-Bank" d.d. Mostar 61.35
  "Hypo Alpe-Adria-Bank" AD Banja Luka 50.41
4 HT- Hrvatske telekomunikacije Croatia   57.86
  Eronet Telekomunikacije d.d. Mostar 35.28
      Eronet Pokretne komunikacije d.d. Mostar 22.59
5 LIVAR d.d. Ivancna Gorica Slovenia "JELŠINGRAD" Livnica celika a.d. Banja Luka 46.03
6 Zagreb. banka d.d. Croatia UniCredit Zagrebacka banka d.d. Mostar 39.95
7 PS Mercator-Ljubljana Slovenia "Mercator BH" d.o.o. Sarajevo 36.80
8 Petrol-Ljubljana Slovenia "Petrol BH Oil Company" d.o.o. Sarajevo 35.18
9 Heidelberger Zement AG Germany "Tvornica cementa" d.d. Kakanj 25.06
10 CC Beverages Holdings II B.V. Netherland "Coca Cola HBC-BH" d.o.o. Sarajevo, Hadžici 23.62
11 Finvest Co-Cabar Belgium "Finvest Drvar" d.d. Drvar 22.11
12 V.I. Sports Consulting Belgium "Mico" d.o.o. Banja Luka 20.45
13 Alas International Baustoff. AG Austria "Fab. cementa Lukavac" d.d. Lukavac 18.31
14 Ostereich. Volksbanken Austria "Volksbank BH" d.d. Sarajevo 17.38
15 Hemofarm a.d. Vršac Serbia and Monte Negro "Hemofarm" d.o.o. Banja Luka 17.15
16 OMV Refining Marketing GmbH Austria "INTEROIL" d.o.o. Srebrenik 17.08
17 Global Infrastructure Holding LTD Great Britain Global Ispat Koksna industrija d.o.o. Lukavac 15.92
18 Bank Austrija Austria HVB-Banka Bosna i Hercegovina d.d. Sarajevo 15.00
19 KCIC Kuvajt "UNITIC" d.o.o.Sarajevo 14.99
20 Dubai I.B. UAE "Bosna Bank International" d.d. Sarajevo 13.25
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FDI INFLOWS IN SOUTH EAST EUROPE (mil. )
Slovenija Croatia Serbia and Montenegro Makedonia Bulgaria Albania BiH4
2002 1 686 1 126 137 78 905 135 265
2003 337 2 042 1 360 95 2 097 178 381
2004 516 1 076 966 151 2 488 426 663
2005 N/A 1 605,81 1 2862 N/A 2 324,23 N/A 523
FDI PER CAPITA (in )
Slovenija Croatia Serbia and Montenegro Makedonia Bulgaria Albania BiH4
2002 844,26 253,75 16,88 38,61 113,55 42,19 69,23
2003 168,75 460,17 167,53 47,03 263,11 55,63 99,43
2004 258,39 242,48 118,99 74,75 312,17 133,13 172,52
2005 N/A 361,87 158,41 N/A 291,61 N/A 136,06
Source UN World Investment Report 2005 1
Source Hrvatska narodna banka 2 Source SIEPA 3
Source InvestBulgaria Agency 4 Source
Centralana banka BiH
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Why invest in BiH?

• Economic Accelerated Reform Process
• Fast improvement of business climate
• Stable financial sector
• Unique VAT rate of 17
• Availability of skilled, educated and
  competitively priced labour force
• An abundance of premises and sites 7 free zones
• Long industry tradition and experience of joint
  ventures (engineering, metal)
• Negotiations with WTO

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Why invest in BiH?
Financial Stability

• The lowest inflation in SEE
• Most stable currency in Southeast Europe (pegged
  to EURO, 1KM 0.51 EUR)
• Permanent growth of GDP 6 per year
• On the May 17, BiH was given B2 credit rating
  with a stable perspective by the Moodys Agency
• Large inflow of foreign banks currently,
  foreign ownership in banking sector in BiH is 85

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FREE TRADE AGREEMENTS
ALBANIA
BULGARIA
ROMANIA
CROATIA
SERBIA AND MONTENEGRO
MAKEDONIJA
MOLDOVA
PREFERENTIAL EXPORT REGIME
ALL 25 EU COUNTRIES
USA
AUSTRALIA
NEW ZEALAND
SWITZERLAND
NORWAY
RUSSIA
JAPAN
CANADA
AGREEMENTS ON PROMOTION AND PROTECTION OF INVESTMENT AGREEMENTS ON PROMOTION AND PROTECTION OF INVESTMENT
AUSTRIA BELGIUM AND LUXEMBOURG
BELARUS CROATIA
CZECH REPUBLIC CHINA
DENMARK EGYPT
FRANCE FINLAND
GREECE GERMANY
HUNGARY ITALY
IRAN INDIA
JORDAN KUWAIT
MACEDONIA MALAYSIA
MOLDOVA NETHERLANDS
OPEC FOUND PAKISTAN
PORTUGAL QATAR
ROMANIA SERBIA AND MONTENEGRO
SLOVENIA SWITZERLAND
SPAIN SWEDEN
TURKEY USA (OPIC)
UKRAINE UNITED KINGDOM
AGREEMENTS ON AVOIDANCE OF DOUBLE TAXATION AGREEMENTS ON AVOIDANCE OF DOUBLE TAXATION
BELGIUM CROATIA
CZECH REPUBLIC CHINA
CYPRUS DENMARK
EGYPT FINLAND
FRANCE GERMANY
HUNGARY ITALY
IRAN MALAYSIA
MOLDOVA NORWAY
PAKISTAN PHILIPPINES
POLAND ROMANIA
SERBIA AND MONTENEGRO SLOVAKIA
SLOVENIA SWEDEN
TURKEY UNITED KINGDOM
UNITED ARAB EMIRATES UNITED ARAB EMIRATES
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Investment Environment
Favourable Legislative Treatment

• FDI Law
• National treatment of foreign investors
• Exemption from payment of custom duties and
  custom fees for investment
• Repatriation of profits
• Protection against nationalization, expropriation
  or similar measures
• Right to freely employ foreign nationals, subject
  to the labour and immigration laws in Bosnia and
  Herzegovina
• Tax incentives
• Five year exemption from payment of tax on
  profits in Federation BiH
• Corporate organization
• There are no citizenship/nationality limitations
  for partners or the members of the
  management and supervisory boards

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Investment potentials Attractive economic
sectors

• Auto-components
• Metal industry
• Energy sector
• Tourism
• Agriculture and Food processing industry
• ICT
• Wood industry
• Infrastructure

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OUR GOALS

• Sustain economic growth
• Progress in reforms and economical liberalization
• Creating enviromant for public private
  partnerschips
• Creating of industrial parks and eraes
• Creating a friendly business environment
• Removal of administrative barriers
• Implementation Strategy for promotion
  attraction investmants in BiH

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Advantages are

• Macro economic stability
• The lowest inflation in the region
• The fastest GDP growth in the region
• Stable Currency exchange rate
• Completely reformed banking sector
• Reform of tax system, including VAT system,
  created unique tax system in the Country.
• Favorable legal framework for foreign investment.

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Branilaca Sarajeva 21 Phone [phone]
080 Fax [phone] E-mail
fipa_at_fipa.gov.ba