Croatia has a growing ICT sector. As early as 2014, AmCham Croatia highlighted the strategic potential of this sector, which is now evident in the development of startups and innovative tech companies. Notably, Croatia has two domestic unicorns in the tech sector. Encouraging the growth of the ICT sector through education, support for startups, and investments could lead to economic growth and the creation of high-quality jobs. Advanced manufacturing, which generates high value through high-tech and innovative products, such as Jabil’s investment in Osijek, has the potential to diversify an economy heavily reliant on tourism. Their investment is a positive signal for other potential investors.
Considering the global growth trend in healthcare and biotechnology, Croatia’s existing pharmaceutical production and its well-educated workforce offer a significant advantage in this sector. These strengths are evident in investments by companies like Pliva and Pfizer, as well as domestic investments in the field.
Business standards in Croatia have significantly improved in recent years, along with measures for administrative relief, tax policy advancements, and increased transparency in dealings with public institutions. When foreign companies compare Croatia to similar investment destinations, there are still challenges, such as administrative inefficiency, high taxation on middle and upper-income salaries, and, more recently, workforce availability—an issue that was previously less pronounced in Croatia compared to investment- saturated countries like the Czech Republic or Poland.
According to AmCham Croatia’s annual business climate survey, investors emphasize EU membership, Croatia’s geostrategic location, and tourism potential as key advantages
According to AmCham Croatia’s annual business climate survey, investors emphasize EU membership, Croatia’s geostrategic location, and tourism potential as key advantages. Around 30% of respondents state that business conditions in Croatia are better than in comparable Central and Eastern European countries, while approximately 46% rate them as similar. Encouragingly, the number of lower evaluations has been steadily decreasing.
Croatia will soon need to transpose the EU Directive on improving gender balance among directors and the Directive on strengthening the principle of equal pay for equal work. This obligation applies to large companies listed on stock exchanges. While there are few such companies, this requirement brings attention to the position of women in leadership roles.
AmCham Croatia recently hosted an ESG conference, where the central panel focused on diversity in leadership. In collaboration with the consultancy firm Kearney, AmCham Croatia is conducting research on the maturity of ESG principles implementation among member companies. It is encouraging to see excellent examples; however, when it comes to ESG, social and governance principles are still less developed than environmental ones. AmCham Croatia itself is a good example of female representation, with four out of seven Board members being women and the Board being chaired by a woman.
