Kosovo is indeed Europe's youngest country that, since declaring independence, has embarked on a major social and economic development program that will act as the foundation for a better future.

Kosovo is well aware that independence brings with it opportunities to increase foreign investments, to increase our manufacturing base, and to generate profits. It is important to underscore the fact that Kosovo has a clear future in the European Union.

Kosovo has low taxes and a simple tax system. It further offers macroeconomic stability, simple and quick business registration procedures, the Euro as its official currency, and a young, dynamic and well educated work force. Through its membership in CEFTA, investors entering Kosovo will enter a market of 28 million people. In addition, Kosovo enjoys customs-free access to the EU market based on the EU Autonomous Trade Preference (ATP) Regime as well as customs-free access to the US market.

We strongly believe that Kosovo will benefit greatly from foreign direct investments (FDI). We are convinced that Kosovo has great potential to become a favored destination for FDI.

The last two years have shown the first signs of sustainable economic development with the private sector being the main backbone of this growth. Kosovo was one the few economies that experienced a positive economic growth (3.8‚ÄČ%) in 2009, despite the financial crisis. However, the FDI inflow decreased during 2009, but the amount of FDI still remained on an acceptable level. Still ,some of the key challenges of Kosovo, such as the big trade imbalance and the high unemployment rate remain.

We think that the best way to successfully tackle these challenges is by continuing to facilitate FDI. Foreign investments are bringing fresh capital, know-how and are creating new jobs in our country. They have started to help Kosovo to reactivate and mobilize its huge resources. At the same time, they are strengthening efforts for a sustainable long-term economic development of the country.

We assure you that the Government of Kosovo will remain focused in further improving the business climate and in speeding up the regional and European integration of Kosovo. We guarantee you the support of the Government for your business and investment activities in our country and we sincerely welcome you in the new Kosovo.

Lutfi Zharku
Minister of Trade and Industry

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