Albanian investments abroad slowed down in the first quarter of the year

Albanian investments abroad suffered a slowdown in the first quarter of this year.

According to data from the Bank of Albania, the value of investments by Albanian companies abroad dropped to 67 million euros, 7% less compared to the same period a year ago.

Despite the decline compared to last year's figure, which had also marked a historic record for Albanian investments abroad for this period of the year, the first quarter of this year still marks the second highest value ever recorded.

For the most part, Albanian investments have been channeled into direct contributions to the capital of companies controlled abroad. These capital injections accounted for approximately 75% of the new Albanian investment flow abroad.

The rest consists mainly of reinvested profits of companies owned abroad.

In recent years, foreign direct investments in Albania this year are hitting record values, but, on the other hand, Albanian investments abroad are also showing a similar upward trend.

However, the net balance of foreign direct investment for the first quarter of 2025 was negative, for a total value of 295 million euros, up 4% compared to the same period last year.

The negative balance in the foreign investment account means that foreign direct investment inflows into Albania remain much higher compared to Albanian investments abroad.

However, in recent years, some of the largest business groups in Albania have been making significant investments in foreign markets. If until a few years ago investments were mainly in neighboring markets, now there are Albanian groups that are also investing significant amounts in the markets of Western Europe and the USA.

The Balfin Group has been investing in the construction and real estate sectors in Austria for years. According to the group's own data, until May of this year the investment portfolio in Austria was estimated at around 100 million euros, while it aims to further increase the investment portfolio in the Austrian market to 200 million euros, mainly in the real estate sector. Since 2022, the Balfin Group has also started operating in Switzerland, and is now also present in the American market, with the main focus always on the development or acquisition of real estate in the USA and Canada, in the model it has also followed in Albania, Kosovo and North Macedonia.

The Kastrati group has also expanded its investments in the American market, with the purchase of DUA Hotel Miami.

Statistical data on Albanian corporate investments abroad do not provide details on their geographical or sectoral distribution. For this reason, there is still no real “map” of Albanian investments abroad, or in which countries or sectors the growth has been concentrated in recent years.

However, it is a fact that some of the most important Albanian business groups have been located in neighboring markets for years, mainly in Kosovo and North Macedonia. / MONITOR