INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY

INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY www. fipa. gov. ba “KOIMA“ DELEGATION VISIT TO BIH Sarajevo, March 2011

www. fipa. gov. ba BUSINESS ENVIRONMENT REASONS TO INVEST IN BIH 1. Stable financial sector 2. Favorable trade and other agreements 3. Favorable legislation 4. Favorable tax and customs system 5. Competitive labour force 6. Foreign Investors Support Fund

www. fipa. gov. ba 1. Stable financial sector The most stable currency in SEE (1 KM = 0, 51129 EUR) Constant growth of foreign currency reserves Foreign ownership in private banking sector in Bi. H is 86% Annual inflation rate, % Source: Agency for Statistics of Bi. H, IMF

www. fipa. gov. ba Stock exchange turnover in million 2005 Sarajevo Stock Exchange Banja Luka Stock Exchange Total 2006 2007 € 2008 2009 2010 Total 283. 95 334. 75 651. 56 243. 92 112. 02 108. 55 1, 919. 69 142. 19 198. 62 379. 67 140. 65 92. 28 176. 20 1, 221. 80 426. 14 533. 37 1, 031. 23 384. 57 204. 30 284. 75 3, 141. 49 Source: SASE, BL Stock Exchange

www. fipa. gov. ba 2. Favourable trade and other agreements Free Trade Agreements: - Central European Free Trade Agreement (CEFTA) - 30 mill consumers - Free Trade Agreement with Turkey - 70 mill consumers Preferential Trade Agreements: - EU, 27 countries - 500 mill consumers - Preferential export regimes with: USA, Australia, Canada, Japan, New Zealand, Switzerland, Norway, Russia Agreements on Avoidance of Double Taxation - with 35 countries Agreements on Promotion and Protection of Investments – with 35 countries

Central European Free Trade Agreement (CEFTA) - 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, Canada and Iran Free Trade Agreements

www. fipa. gov. ba 3. 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 Bi. H • Corporation organization • There are no citizenship/nationality limitations for partners or the members of the menangment and supervisory boards

www. fipa. gov. ba 4. Favorable tax and customs system • Tax system – Unique VAT rate of 17% – Profit tax is 10% – Favorable incentives and tax exemptions • Customs system – Exemption from payment of customs duties foreign investors – Customs rates 0 -15%

www. fipa. gov. ba 5. Competitive labour force • Educated & skilled • Efficient, creative and innovative • Foreign language spoken • Price competative (in comparison to other EU countries) • Average net wage in 2010 - 408 EUR

www. fipa. gov. ba 6. Foreign Investors Support Fund • • Established by Council of Ministers Budget 1 mill € Foreign investment projects in production, research, development etc. (except trade, banking, leasing and insurance) Conditions: - Number of employees - Investment location - Value of investment - Export of products - Environment protection

FDI inflow in Bi. H, by years, mill € FDI by Sectors (May 1994 – December 2010) Source: CBBH, Mo. FTER, FIPA Source: CBBH, Mo. FTER i FIPA

Million € www. fipa. gov. ba Top investor countries in Bi. H May 1994 - December 2010 – Total amount 6. 1 billion € Source: CB Bi. H, MOFTER, FIPA

www. fipa. gov. ba The most attractive sectors • Energy sector • Toursim sector • Wood industry • Metal processing industry • Automotive industry • Constructuction industry • Agriculture and food processing • Textile and footwear • ICT

www. fipa. gov. ba Investment opportunities • Availability of natural resources and supply networks • Highly competitive overall cost structure • Privatization process • Concessions • Bankruptcy opportunities • Investment projects • Joint ventures • Investment locations

www. fipa. gov. ba FIPA support What we can do for you? • To inform you on: ü ü • FDI related legislation Macroeconomic indicators Business environment Investment projects, privatisation opportunities, available tenders To advice you: ü How to set up a company ü To identify location for Greenfield investment or business service providers • To support you to: ü Implement projects ü Cooperate with local private sector ü Organise meeting with responsible authorities ALL FIPA SERVICES ARE CLIENT-ORIENTED AND FREE OF CHARGE!

INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY Sarajevo Office Avaz Twist Tower, Tešanjska 24 A Phone: +387 33 278 080 Fax: +387 33 278 081 E-mail: fipa@fipa. gov. ba www. fipa. gov. ba Banja Luka Office Ðure Daničića 1/III Phone/ Fax: : ++387 51 226 180 E-mail: banjaluka@fipa. gov. ba Mostar Office Rade Bitange 30 Phone /Fax: ++387 36 558 815 E-mail: mostar@fipa. gov. ba THANK YOU FOR YOUR ATTENTION www. fipa. gov. ba