Law No. 08/L-209 on Sustainable Investments has entered into force today. It brings significant changes to Kosova’s investment and export landscape, marking a milestone toward enhancing the country’s economic development.

The law consolidates the previous Law on Foreign Investments and the Law on Strategic Investments into a single framework, making it easier for investors to navigate the regulatory landscape. With a focus on sustainable growth in priority sectors, it aims to position Kosova as a competitive destination for investment and boost the country’s export potential.

Establishment of the new Agencies

One significant change introduced by this law is the dissolution of KIESA and its restructuring into two separate agencies that will now contribute to enhancing the business climate in Kosova:

1) Agency for Investments and Exports (AIE);

2) Agency for Innovation and Support to Enterprises in the Republic of Kosovo (AISEK)

Most functions related to investments and exports will be streamlined under the AIE, rendering it a one-stop shop for investors and exporters. The AIE, an executive structure under the Prime Minister’s Office, will provide comprehensive services, ranging from investment promotion and facilitation to strategic investment evaluation and post-investment care. Additionally, the AIE will help promote Kosova’s products in international markets, paving the way for an increase in exports. By concentrating these investment and export functions within a single agency, the law aims to reduce bureaucratic barriers, facilitating easier business operations and investments in Kosova.

AISEK, on the other hand, is a structure established under the Ministry of Industry, Entrepreneurship, and Trade. Its main role will be boosting innovation and entrepreneurship in Kosova. Besides providing initial business information, financial advice, and other help for businesses, AISEK also works to build partnerships, organizes networking events both locally and internationally, and helps improve production capacities for export. Furthermore, the AISEK promotes tourism and manages industrial and technological parks, supporting a business-friendly environment and fostering international cooperation.

A thriving business environment

The law places a strong emphasis on sustainability, prioritizing investments that align with long-term economic, social, and environmental objectives. Investors contributing to national objectives or priority sectors recognized by this law stand to benefit from a range of incentives. Such benefits include tax breaks, subsidies for research and development, access to industrial parks, access to finance, and reduced administrative hurdles.

As the agencies prepare to begin their operations, businesses can anticipate new growth opportunities and expansion. The improved regulatory framework and streamlined services will create a more favorable environment for businesses looking to innovate and thrive in Kosova.

With these changes, we look forward to a business ecosystem more conducive to growth, innovation, and sustainability in the coming years.