1. Dr. Besim BEQAJ1 Investment Development and Financing 4 th Vienna Economic Forum Dr. Besim BEQAJ November 5, 2007 Kosovo Chamber of Commerce

2. Dr. Besim BEQAJ 2 Economic outlook Population 2.2. mil GDP per capita ~1200 Euro Economic growth ~5% Unemployment ~40% Good legislation harmonized with EU Sound macroeconomic policies Human and material resources Stimulating investment environment Stable political system Sound banking system An inviting business environment Customs code harmonized with EU Many investment opportunities

3. Dr. Besim BEQAJ 3 Trade liberalization and integration FTA with countries in the region under SP for SEE Signatory of CEFTA agreement Regional Energy Market SEETO SAP through STM Trade regionalism Political background Economic Background

4. Dr. Besim BEQAJ 4 Privatization and SME Development Successful story – still continues with very high transparency SME-s will be the backbone of the Kosova economy. Strong entrepreneurial spirit Orientation for outsourcing services

5. Dr. Besim BEQAJ 5 Stimulating investment environment Political and legal stability (Status to be defined soon). Free access to the market of the European Union and the markets of neighboring countries; Modern business-support institutions; Simple and quick business registration procedure Modern and EU compatible legal framework; The Euro is official currency, eliminating Euro zone currency risk

6. Dr. Besim BEQAJ 6 Stimulating investment environment - cont National treatment investment regime Guarantees for unrestricted use of income Prohibition of favoritism and discrimination Protection against expropriation 99 year land lease (UN guarantee) Central location in the region

7. Dr. Besim BEQAJ 7 Sound banking system BPK Authority-regulates banking and insurance sectors All banks are private 7 banks, including Raiffeisen Bank, 8 insurance companies

8. Dr. Besim BEQAJ 8 Expansion of investment activities Education Industrial sector Agro processing industry Energy SME competitivness Infrastructure Construction Service sector Banking Insurance Tourism Information Technology

9. Dr. Besim BEQAJ 9 Import substitution Trade exchange: Agro processing Construction materials Food and beverages Packaging Wood processing

10. Dr. Besim BEQAJ 10 You can contact me: besim.beqaj@oek-kcc.org +381 38 224741 +377 44 500 499 Thank You for attention! besim.beqaj@oek-kcc.org