Number of foreign and joint ventures grew rapidly in 2021, reaching the highest level ever recorded.

According to INSTAT data, at the end of 2021, there were 6,635 enterprises with foreign and joint capital in the country, with an increase of 10% compared to last year. 600 new enterprises with foreign or joint capital were opened in 2021, from about 15 thousand that were a total of entities added in the same period.

In 2020, the number of foreign enterprises had decreased by 6.3% compared to 2019, as a result of the consequences created in the economy of the pandemic and the restrictions that were taken to curb it.

However, even in relation to 2019, the number of foreign and joint ventures increased by 3.2%.

Although the total number of foreign and joint ventures in the country has increased significantly, it is the small ones that have made the difference, while large companies, which employ more than 50 employees have marked a significant decline.

According to INSTAT data, in 2021 44 companies left (net), which had more than 50 employees and another 97 that had from 10 to 49 employees. The departures are mainly in the field of industry, it was the only activity with decreasing number of foreign businesses in 2021.

In contrast, 648 small entities have been added, with 1-4 employees and 93 businesses with 5 to 9 employees.

According to INSTAT, Enterprises with foreign owners or co-owners occupy 5.6% of total enterprises, compared to 5.1% of active enterprises in 2020, and employ 12.7% of total employees.

Enterprises from European Union countries represent 57.6% of foreign and joint ventures. Owners or co-owners of Italian and Greek origin represent 45.5% of the total foreign and joint ventures. Foreign and joint ventures are mainly concentrated in the regions of Tirana and Durrës, respectively 68.9% and 12.7%.

Services dominate in foreign businesses opening in Albania, with 38% of the total, followed by trade with 24%. Services also marked the highest growth of foreign businesses, accounting for more than half of the entities in this category, registered in 2021.

A positive phenomenon is the increase of foreign businesses in the activity of "Information and communication", which increased by 22%, or 97 new enterprises. This is the highest percentage increase of all economic activities, followed by services, with 16%.

Technology and Information are attracting foreign investors in recent years, providing services to third parties, taking advantage of the cheap cost of labor. Market operators have claimed that despite the high interest rate, the problem remains finding a specialized workforce due to the emigration of professionals.

Despite the growth, the share of IT businesses in total foreign entities remains low, at only 8% of the total.

Even businesses with foreign capital are generally small. Only 4.4% of foreign companies in the country had more than 50 employees.

(Source: Monitor)