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BiH’s FDI Surges by 24% in First Nine Months of 2023

Foreign Direct Investment (FDI) in Bosnia and Herzegovina during the first nine months of 2023 increased by nearly 24 percent, confirmed by the Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina.

According to the recently published preliminary data from the Central Bank of BiH in the framework of FDI flows, with estimated retained earnings, for the period January – September 2023, direct foreign investments amounted to 1,442.8 million KM or 737.7 million euros,” FIPA told the portal Radiosarajevo.ba.

Foreign investments for the period from January to September 2023 were 23.9% higher compared to the same period in the previous year when FDIs were 1,164.1 million KM, the institution reported.

Interestingly, the largest investor in BiH in the first nine months of 2023 was the Russian Federation, which invested 312 million KM in BiH. This is confirmed by data from the Central Bank of BiH.

Specifically, Russia, under strict international sanctions since its invasion of Ukraine, brought in 342 million BAM into BiH in the so-called “other capital” category in the nine months of 2023. However, it simultaneously withdrew about 30.6 million through “retained earnings”, bringing the investment level down to the mentioned 312 million KM.

Baščaršija, Sarajevo, Photo: Unsplash

Following Russia, the Netherlands and neighboring Croatia invested 166 and 165.1 million KM, respectively, in BiH.

Close behind them is the United Kingdom with investments of 163.4 million KM, mainly related to the British “Adriatic Metals” project in Vareš, and Turkey with 120 million KM.

BiH’s long-standing business partner, Germany, invested 92.3 million KM in BiH this year, while Austria invested 79.8 million KM.

Italy and Slovenia invested 65.3 and 60 million KM, respectively, in BiH.

The circle of the top ten investors is concluded by neighboring Serbia, which invested 51.7 million KM in BiH. Not to be forgotten is Switzerland with 42.2 million KM.

Other investors include Belgium, the Czech Republic, Cyprus, Montenegro, France, Lithuania, Luxembourg, Hungary (notably, Hungary invested about 4.3 million KM, despite the president of the BiH entity RS Milorad Dodik’s announcement that it would “take over” all German projects halted due to his secessionist policies), Saudi Arabia, the United States, the United Arab Emirates (UAE), Slovakia, Saudi Arabia, Norway… These represent significant investments. It should be noted that almost 62 million KM was invested in BiH by all other countries in 2023, according to data from the Central Bank of BiH.

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