INVEST IN SERBIA

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INVEST IN SERBIA
Serbia Investment and Export Promotion Agency
Aleksandra Pastor Country Officer Serbia
March, 2009
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FDI TRACK RECORD

• Over 13bn of FDI since 2002
• EU member states accounted for about 70 of FDI
  inflow
• Top five investors Austria, Italy, Germany, USA
  and Slovenia

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ITALIAN INVESTMENTS IN SERBIA

• 1 billion dollars FDI from Italy
• More then 200 Italian companies present in Serbia
• 2.5 billion dollars turnover of Italian companies
  operating in Serbia
• 18.000 people employed by Italian companies

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WHY SERBIA?

• Increasing stability
• Strategic position and Adequate infrastructure
• Market access Market potential
• Valuable human capital
• Improved legal framework
• Favorable tax Investment regime
• Sourcing opportunities Local suppliers
• FDI track record
• SIEPA services tailored to your needs

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INCREASING STABILITY

• Serbia initialed the Stabilization and
  Association Agreement (SAA) with the European
  Union, signed in April 2008 and ratified in
  Serbian Parliament in September 2008 membership
  candidacy planned for 2009
• WTO accepted Serbias application working group
  established in January 2005, accession planned in
  2009

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GDP GROWTH RATE
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STRATEGIC POSITION

• Crossroad of two high - priority transportation
  corridors
• Corridor X Highway Salzburg -Thessalonica,
  including branches Budapest - Belgrade and Nis -
  Sofia - Istanbul
• Corridor VII Danube, access to the Black Sea,
  and through Rhine - Main - Danube Canal system to
  the North Sea

-- Corridor VII -- Corridor X
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MARKET ACCESS

• SEE is one of the Europes fastest growing
  regions - Serbia is in the center of the SEE
  CEFTA Free Trade Area
• Trade with the U.S. pursued under the GSP
  customs exemptions for more than 4,500 products
• Customs-free exports to the EU (trade measures
  granted by the EU in December 2000)
• Serbia - the only country outside the CIS that
  has an FTA with the Russian Federation a market
  of 142 million people
• Negotiations for the FTA with Belarus and Ukraine
  to be finalized in 2009

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VALUABLE HUMAN CAPITAL

• Number of graduated students from universities in
  Serbia (1/3 of all students are from technical
  schools)

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VALUABLE HUMAN CAPITAL
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IMPROVED LEGAL FRAMEWORK

• More than 260 laws passed since 2004
• Majority related to economic environment
• Bankruptcy (avg. 7 years -gt 1 year)
• Business Registration (51 day -gt 18 days )
• Company Law
• A package of tax laws, including VAT

Serbia is a number one business reformer in the
world. World Bank, Doing Business in 2006
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FAVORABLE TAX REGIME
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FAVORABLE INVESTMENT REGIME

• Corporate profit tax rate 10
• 10 - year corporate profit tax holiday for large
  investments
• Corporate profit tax relief for hiring new
  workers
• Corporate profit tax credit up to 80 of
  investment amount for investing in fixed assets
• Accelerated depreciation
• Import of in-kind equipment exempt from custom
  duties
• Financial incentives for direct investments

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INCENTIVES FOR DIRECT INVESTMENTS
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SOURCING OPORTUNITIES

• Decades of cooperation with International
  companies
• Vs, licensing and other partnership forms
• Automotive component, textile, electronics, food
  and beverages, and IT industry leading the way

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INVESTMENT AND PRIVATISATION OPORTUNITIES

• Infrastructure Development
• Pan-European Corridor X (highways and railways)
• Energy (new thermal and hydro plants)
• Major Real Sector Privatizations in the Pipeline
• Galenika pharmaceutical company tender
• Telekom Serbia
• Belgrade Airport
• Electric Power Company of Serbia
• Booming Real Estate Market
• Tourism (mountain resorts and spa opportunities)
• Construction

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WHAT CAN SIEPA DO FOR YOU?

• Information on general business environment and
  specific industries
• Information on taxation, employment, customs,
  real estate and other relevant laws and
  regulations
• Linking potential investors to Brownfield,
  Greenfield, and JV opportunities, including site
  visit organization
• Advice on business service providers financial,
  consulting
• Assistance with registration, licensing, work
  permits, and other documentation
• Assistance in dealing with administration at all
  levels

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SIEPA SUCCESS STORIES
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INVEST IN SERBIA!THE TIME IS NOW!

• Serbia Investment and
• Export Promotion Agency
• 3/V Vlajkoviceva St.
• 11000 Belgrade
• Phone [phone]
• Fax [phone]
• Email office_at_siepa.sr.gov.yu
• www.siepa.sr.gov.yu