Dedicated to Serbia’s Prosperity

By committing to innovation, sustainability, and the rule of law, Serbia can secure its position as an attractive investment destination. The 2024 White Book outlines key strategies to make this a reality

Serbia continues to be a top destination for foreign investment, with €4.52 billion in foreign direct investment (FDI) recorded last year. Despite this success, recent global disruptions, particularly in Europe, have pressured supply chains, and the overall investment climate has made foreign investors cautious.

To better position Serbia as a place with great investment potential, it is crucial for all stakeholders to collaborate in fostering effective governance, competitiveness, and improved living standards, of the Foreign Investors Council Serbia (FIC Serbia). “The 2024 White Book provides food for thought on how to improve the business and investment climate that is an incentive to attract foreign investments while strengthening domestic companies, which are becoming global value chains.”

In its recently published 2024 White Book, the FIC Serbia outlined a series of recommendations aimed at deepening reforms and making Serbia’s business environment more appealing to investors. Drawing from the experiences of more than 120 member companies, which collectively represent €45 billion in investments and employ over 116,000 people, the White Book provides actionable insights for improving critical areas of the Serbian economy. These include refining tax policies, modernising labour laws, upgrading infrastructure, accelerating digitalisation, and enhancing environmental sustainability. The recommendations offer a roadmap for addressing systemic challenges and unlocking the country’s potential for sustainable growth.

Why today is it particularly important for Serbia and the Region to push for reforms?

In his introduction to the 2024 White Book, Emanuele Giaufret, the EU Ambassador to Serbia, underscored that the European Union’s renewed commitment to enlargement offers Serbia an unprecedented chance to harness reform opportunities through closer alignment with EU standards. This path, he argued, goes beyond the prospect of membership— it represents a gateway for Serbia successfully within the EU’s single market.

Thus, business environment enhancements, advancements in digital technology, green energy investments, and importance”.

As Serbia moves forward, the recommendations presented in the FIC Serbia’s White Book underscore the importance of sustaining momentum during this critical period.

Building upon the findings of the 2024 White Book, what do you consider the most significant improvement in Serbia’s business climate over the past year?

The White Book 2024 outlines significant advancements in various sectors of Serbia’s economy and regulatory framework. We highlighted that the most significant progress was made in Indeed, for several years, digitalisation has been one of the strongest areas. For example, businesses have recently received unique eMailboxes connected to the Business Registers Agency, facilitating more efficient operations. The introduction of the Open Balkan Identification Number enhanced e-government services across North Macedonia, Albania, and Serbia. Additionally, work began on the Strategy for Artificial Intelligence Development (2024– 2030), alongside amendments to key laws regulating electronic governance and trust services.

In the environmental sector, notable achievements include adopting the Low Carbon Development Strategy, the first Air Protection Programme (2022– 2030), and a Circular Economy Development Programme. These steps align Serbia with EU environmental and climate goals.

The pharmaceutical industry saw expanded funding for therapies through the NHIF, enabling off-label drug use and enhancing therapeutic options for patients.

The introduction of digital systems such as the Regulatory Information Management System (RIMS) further modernised regulatory processes. In real estate, amendments to the Law on Planning and Construction introduced green construction concepts and the “E-space” platform, simplifying construction permit issuance. Other positive steps included intensified efforts to suppress the grey economy through digitalised fiscalization systems and the adoption of targeted anti-grey economy action plans.

Which areas need further attention from the government?

Despite progress, challenges remain in taxation, with unresolved issues like property tax harmonisation, fair value of property for corporate income tax purposes and parafiscal charges. Labour law needs flexibility for remote work and clearer termination guidelines, while dual vocational education reforms are still incomplete. The tourism industry needs a new strategic framework to sustain its growth in an increasingly competitive international market. Environmental management must address waste sorting, illegal landfills, and air quality improvements. Similarly, foreign exchange regulations remain outdated, with complex procedures that limit liberalisation in the Open Balkan region.

FIC Serbia is committed to supporting Serbia’s green and digital transitions, which are already transforming global economies

Equally important are reforms in food safety laws, which need alignment with EU regulations and efforts to adopt regenerative agricultural practices. Finally, in pharmaceuticals, securing stable funding for innovative and generic therapies is crucial, along with expanding the NHIF reimbursement list.

How should Serbia pursue further alignment with the EU?

To attract additional investments, acceleration of integration with the EU market including is essential. Specifically, countries in the Western Balkans, including Serbia, must persist with structural reforms and align their policies with EU standards to enhance competitiveness and secure a position in global supply chains. It is equally important to recognise the significant role of domestic companies, as fostering both foreign and local investments is crucial for maintaining a balanced economic ecosystem.

How does FIC Serbia support these efforts?

FIC Serbia is committed to supporting Serbia’s green and digital transitions, which are already transforming global economies. We believe accelerating digital transformation and prioritising environmental sustainability are essential for unlocking Serbia’s economic potential. As initiators of key digitalisation efforts, FIC members played a crucial role in advancing solutions such as digitised promissory notes, video identification, cloud-based signatures, and other tools that have simplified business practices and improved working conditions.

The FIC Serbia expanded its efforts in 2024 by further strengthening cooperation with the National Bank of Serbia and raising awareness on ESG, green and digital transformation, transfer pricing, and regulatory frameworks for generative AI. We also collaborated with the European Bank for Reconstruction and Development (EBRD) to organise a conference on financial services focused on these transformations. We hosted a successful event in the telecommunications sector, emphasising the importance of continued investment in enhancing service quality.

In the 2024 White book, you have included an important manifesto. Tell us more about it.

The FIC Serbia’s greatest asset is the knowledge and expertise that our members generously share to improve the Serbian business climate. Their experience and expertise are crucial in helping Serbia adopt these international ESG standards and successfully navigate the green and digital transitions.

We believe businesses are key in driving economic growth while promoting social inclusion, cohesion, and environmental protection. To achieve this, we remain committed to supporting the development of public policies that encourage sustainable and responsible business practices, fostering multi-stakeholder and cross-sector dialogue to address urgent economic, social, and environmental challenges, and leading by example in corporate governance and transparency. This includes promoting best practices in transparent reporting on social and environmental impacts.