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INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW
OPPORTUNITY
BOSNIA AND HERZEGOVINA INVESTMENT
OPPORTUNITIES Presented by Dika
Mustafic-Cokoja
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INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW
OPPORTUNITY
A small country with huge potential

• Population 3.4 million
• Possibility to export to about 600 mill. people
  market
• without customs duties
• Strategic location
• Cheap labour force
• The most stable currency
• The fastest growth of GDP in the region

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Reasons to invest in BiH

• 1. Stable financial sector
• 2. Favourable trade and other agreements
• - 37 Agreements on Protection of
  Investments
• 28 Agreements on Avoidance of Double Taxation
• Central European Free Trade Agreement - 30 mill
• Free Trade Agreement with Turkey - 70 mill
• Preferential Trade Agreement with EU, 27
  countries - 500 mill
• Preferential export regimes with USA, Australia,
  New Zealand,
• Switzerland, Norway, Russia, Japan and
  Canada.
• 3. Favourable legislation for investment
• 4. Favourable tax and customs system
• 5. Cheap labour force
• 6. Attractive incentives for foreign investors
• 7. Investor protection index

Investor Protection Index
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Stable Financial Sector

• The lowest inflation in SEE
• The most stable currency in SEE tied to EUR(1KM
  0.51 EUR)
• Large inflow of foreign banks foreign ownership
  in private banking sector
• in BiH is 86
• Getting credit (Doing business 2008 - WB)
• 1st position in the region,
• 13th out of 178 countries

• Progress on straightforwardness of border trade,
  to 56th place from 122nd
• Progress in property registration area

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Favourable Legislation

• FDI Law
• National treatment of foreign investors
• Repatriation of profits
• Protection against nationalization, expropriation
  or similar measures
• Right to freely employ foreign nationals, subject
  to the labour and immigration laws in BiH.
• Corporation organization
• There are no citizenship/nationality limitations
  for partners or the members of the menangment and
  supervisory boards

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Encouraging Tax and Customs System

• Corporate income tax of 10
• Favourable incentives and tax exemptions
• Flat VAT rate of 17
• The lowest VAT rate in the region
• Customs rates of 0-15
• Exemption from payment of customs duties
• for equipment of foreign investors
• Free trade zones
• Exemption from paying VAT and customs duties

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Local Support for Foreign Investors
Top foreign investors

• State Level Support
• Foreign Investors Support Fund
• Entity Level Support
• Privatisation Process
• Cantonal Level Support
• Project of the Interest Regression on
  Investment Projects
• Municipality Support
• Land Grant/Privileges

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BiH France

• Foreign investment from France
• 44.48 mill EUR (1994 -2007)
• Major French investors in BiH
• Petrolinvest doo
• Eden doo
• Interrex doo
• Agreements signed between BiH and France
• Free Trade Agreement
• Agreement on Avoidance of Double Taxation
• Agreement on Promotion and Protection of
  Investments

French Institutions in BiH

• The French Embassy in BiH
• The French Institute in BiH
• The French School Sarajevo
• BiH Embassy in France
• No visa requirements for citizens of France

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BiH France
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• Attractive Economic Sectors
• Energy Sector
• Tourism
• Auto-components Industry
• Wood Industry
• Metal Industry
• Agriculture and Food Processing Industry
• Construction Industry
• Infrastructure
• ICT

Total FDI inflow, mill
Source CB BiH, MOFTER, FIPA
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FIPA Support

• Servicing potential and existing investors
• Legal advice for foreign investors
• Providing of all information related to BiH
  business environment
• Investor after-care
• Policy advocacy
• Analysis and presentation of attractive sectors
  for foreign investors
• Good co-operation with all levels of Government
  in BiH.
• OUR SERVICES ARE FREE AND CONFIDENTIAL

Branilaca Sarajeva 21 Phone [phone]
080 E-mail fipa_at_fipa.gov.ba www.fipa.gov.ba
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INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW
OPPORTUNITY
A Great Place to Work....And to Enjoy Life
Bosnia and Herzegovina is a great place to
invest, not in the least because it is a great
place to live! The country lifestyle is deeply
rooted in its rich tradition, culture heritage
and natural beauties, married with the
amenenities of the west.
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THANK YOU FOR YOUR ATTENTION !