Why buy in Albania?

Unfortunately for most people, the first image that comes into their mind when you mention Albania is that of a mafia run country, devastated by fighting and somewhere you definitely wouldn't want to visit, let alone invest in.

However, things couldn't be further from the truth. Albania is now a parliamentary democracy that is transforming its economy into a market-oriented system, and is a potential candidate for membership in the European Union and NATO.

Albania has had a turbulent past, but it was never through the fault of the genral population. From 1944 to 1991, Albania became a People's Republic and was a one-party state in which Enver Hoxha ruled with an austere hand. This led to Albania being almost completely cut off from the rest of the world. The first massive anti-communist protests took place in July 1990, after which things slowly started to change, and by the general elections of June 1996, the Democratic Party achieved an absolute majority, winning over 85% of parliamentary seats.

However, in 1997, widespread riots erupted after the International Monetary Fund forced the state to liberalize banking practices. Many citizens, naive to the workings of a market economy, put their entire savings into pyramid schemes. In a short while, $2 billion (80% of the country's GDP) had been moved into the hands of just a few pyramid scheme owners, causing severe economic troubles and civic unrest.

Since then things have stabilised, and the Euro-Atlantic integration of Albania has been the ultimate goal of the post-communist governments. Albania's EU membership bid has been set as a priority by the European Commission. In 2006, Albania signed a Stabilization and Association Agreement with the EU, thus completing the first major step towards joining the bloc. Albania, along with Croatia and the Former Yugoslav Republic of Macedonia, hopes to receive an invitation to join NATO in 2008.

So why would you want to invest in Albania?

In a nutshell, here's why:

Numerous large corporations are bidding on the tenders for the privatization of the Energy and Water sectors. The tender for Tirana International airport was won recently by Hochtief, a German company, which invested €50 million in a state of the art new terminal. Furthermore a massive improvement in Albania's transportation network will make the country more accessible. The OPEC Fund ($15 million) and the World Bank ($25 million) financed the construction of the pivotal 170km highway between Albania and Kosovo. The cost of the project is EUR 500 million and is being managed by a US-Turkish consortium headed by Bechtel. In the mid-term the completion of the highway along the coast from Dubrovnik through to Saranda will transform the country. This will help Albania make the most of its incredible potential for tourism on its lengthy coast.