Albania’s GDP is expected to cross the $34 billion mark by 2029, an increase of over 36% over the next five years. Similarly, since it has a strong chance of being accepted into the European Union in the coming years, early investment in this country could mean access to all EU countries.
In this guide, we’ll share some of the best available business opportunities in Albania for you to consider if you’re planning on investing in the country.
Key Takeaways
- Albania’s growing economy and the chances of EU accession make it a desirable option for various investments.
- Within the country, the tourism industry and the agriculture sector are more profitable investment options.
- For export purposes and expansion outside the country, eco-conscious products and services in the IT industry can make up good business options in Albania.
Best Business Ideas In Albania
The country’s strategic location in the Balkans makes it an attractive option for various businesses. If you’re planning on investing in Albania, you can consider the following business ideas:
Textile and Footwear Industry
- Expected Footwear market Size in 5 years: $101.7 million
- Expected Apparel Market Size in 5 years: $324.89 million
We highly recommend these industries to kickstart your business journey in Albania. You can benefit from the country’s close proximity to the EU and establish yourself as a leading footwear and textile brand. In fact, the footwear industry was expected to generate a cumulative volume of $92 million in sales in 2024 alone. As for the textile industry, statistics predict an estimated revenue of $283.29 million for the ongoing year.
If considering this industry, we suggest giving priority to women’s demographics as it is seen to be more profitable in the Albanian region. Similarly, you can also find affordable labour directly from within the country, which significantly reduces your production costs. You can also partner with locally established producers to be a part of profitable ventures instead of starting everything from scratch.
Tourism And Hospitality
Expected Market Size in 5 Years: $98.64 million
Albania is a naturally blessed country with all types of seasons and landscapes that attract tourists throughout the year. Similarly, the tourism industry has seen rapid growth in recent years and has attracted over 6 million visitors within the first seven months of 2024. Last year, this industry accounted for $6.15 billion in the country’s economy, which is an increase of 37% from their previous best record.
The country’s stunning landscapes and historical landmarks provide not only good business opportunities but also make it a good place to relocate to. Our detailed guide for Foreigners Moving to Albania is a good head start if you’re considering shifting to this country.
Business opportunities in this sector in Albania range from opening boutique hotels and hostels to establishing travel agencies to offer unique local experiences.
Real Estate
Expected Market Size in 5 Years: $119.20 billion
The real estate market is growing globally, and the same is the case with Albania, especially in cities like Tirana, Saranda, and Vlora. Unlike other European Countries, property prices remain relatively low, which provides an attractive opportunity for real estate developers and investors. In fact, the market is expected to cross the $88 billion mark in 2024.
The Albanian government’s initiatives to ease property buying procedures and support foreign investment are key factors driving growth in this sector. Similarly, the Albanian real estate sector is projected to grow at a steady 6% rate for the next five years. For in-depth guidance, I recommend you read our detailed article on Buying Property in Albania.
Get our “Buying Property in Albania” e-book and start your journey to owning a home in Albania!
Food and Agriculture
Expected Market Size in 5 Years: $11.46 billion
Even though agriculture contributes less than 5% of the GDP of most European countries, it covers over 20% of Albania’s GDP. The country relies highly on its agriculture resources which also provide investment opportunities for eager businessmen. Moreover, even with this much potential, this sector is very unsaturated, as not many people invest in it.
The biggest reason to invest in the food and agriculture sector is that the country has many free trade agreements with some of the biggest economies of the region. You can start exporting raw vegetables or build manufacturing plants to create value-added products that can be exported throughout the region.
IT Services and Outsourcing
Expected Market Size in 5 Years: $177.40 million
Albania has a young, tech-savvy population, and its IT sector is expanding quickly, thanks to widespread internet access. The country is becoming a popular destination for outsourcing services, especially in the software development and customer support sectors.
In fact, call centre businesses in Albania are doing quite well by offering services to Italian, English, and German clients. It is so good that the IT services market is expected to reach $128.90 million in revenue this year.
Moreover, predictions state the industry will grow by 6.60% every year for the next half-decade. With competitive labour costs and a strong focus on education in STEM fields, Albania is in a good position for investors to explore investment opportunities in services-based businesses.
Eco-Friendly Products and Services
With the global shift towards sustainability, businesses focusing on eco-friendly products and services have more chances of succeeding. There is growing awareness and demand for environmentally conscious solutions as the country is trying to align itself with EU environmental standards.
In fact, it is collaborating with the EU to launch campaigns for environmental awareness and eco-consciousness.
This provides an opportunity for investors to take an early advantage and start new businesses that can solve environmental problems. We have a few suggestions in this regard, and you can find some ideas below:
- Biodegradable and Sustainable Packaging: The demand for alternatives to plastic, such as biodegradable paper products and reusable packaging, is growing rapidly in the EU. So, by setting up a business that manufactures eco-friendly packaging materials, you can target markets under pressure to reduce their carbon footprints.
- Eco-Tourism and Green Hospitality: This concept is growing in popularity among tourists who want to experience nature responsibly. Therefore, opening eco-lodges, guided nature tours, or offering sustainable travel packages can be a good profitable business.
- Waste Management and Recycling: As we said above, Albania is increasing its efforts to reduce waste and promote recycling as part of its environmental policy. As an entrepreneur, you can provide waste collection services and recycling facilities or even develop technologies to convert waste into reusable products.
Conclusion
In short, you can get the benefit of its favorable business environment and execute various business ideas in Albania. With the strong possibility of EU accession, your early investment in Albania could open doors to the wider European market for you. Similarly, within the country, from tourism and agriculture to Information Technology, you can explore multiple investment options.
