The President of the Chamber of Commerce and Industry in Tirana, Nikolin Jaka, in an interview with Radio Kosovo, said that a particular trend of the recent period is that Kosovo has become the largest investor in Albania, leading to a significant increase in direct investments and exploiting the potential of the Albanian market in sectors such as real estate, construction, energy and tourism.

Mr. Jaka, how do you assess the current level of economic cooperation between Kosovo and Albania?

Nikolin Jaka: Economic and trade cooperation between Kosovo and Albania has seen significant improvements in recent years, reflecting the political will and growing interest of the business community in both countries. Trade exchanges have reached historic levels. For the first half of 2025, Albanian exports to Kosovo are estimated at around 420 million euros (around 41 billion lekë), almost double the same period last year. Imports from Kosovo to Albania are also increasing, but overall remain at lower levels compared to Albania's exports.

However, despite these results, the current level of cooperation still remains below the real capacity that the two economies can achieve, given the geographical proximity, historical and cultural ties, and the complementary structure of the markets. Trade is mainly concentrated in traditional sectors such as construction materials, fuels, beverages, metals and minerals, while other value-added sectors remain untapped.

From a business perspective, administrative obstacles, customs procedures, and the not always effective implementation of existing agreements continue to be considered barriers to the real deepening of economic cooperation. For this reason, a more practical and coordinated approach is needed, focused on facilitating procedures, harmonizing regulations, and creating concrete conditions for businesses to operate more freely and competitively in both markets.

What are the main sectors where economic cooperation between the two countries has increased in recent years?

Nikolin Jaka: In recent years, economic cooperation between Albania and Kosovo has increased in several key sectors, where business interest and institutional support have yielded concrete results.

One of the main areas remains trade in industrial goods, especially construction materials, minerals, energy and other industrial products, which constitute a significant portion of trade exchanges between the two countries.

The energy sector represents an important and relatively new direction of cooperation, especially through the functioning of the Albanian energy exchange ALPEX and joint projects in the field of electricity, which are creating opportunities for optimizing resources and stabilizing the energy market at the regional level.

Also, transport and logistics infrastructure are areas where cooperation has intensified, especially in terms of the use of Albanian ports by Kosovo businesses and the implementation of infrastructure projects aimed at facilitating the movement of goods and services.

In the agriculture and food sector, there has been an increase in trade exchanges and cooperation initiatives at the government level, although there is still untapped potential for increasing value added and standardizing products.

However, despite these positive developments, direct investment between the two countries still remains relatively modest. The private sector continues to seek a more favorable business environment, more developed infrastructure, and support mechanisms that would foster deeper and longer-term cooperation.

What impact have intergovernmental agreements had on increasing trade between the two countries?

Nikolin Jaka: Intergovernmental agreements have played an important role in creating the institutional and legal basis for increasing trade between Albania and Kosovo. From a business perspective, these agreements are essential as they create legal certainty for investors. In particular, agreements for the protection and promotion of bilateral investments aim to increase cross-border capital and encourage more active engagement of the private sector in both markets.

Also, new agreements in areas such as agriculture, social security, railways, energy, and border cooperation have significantly expanded the framework of economic cooperation, creating premises for deeper market integration and improving operational conditions for businesses.

Customs facilitation, mutual recognition of documents and industrial standards, as well as measures to simplify procedures, have helped reduce barriers to trade and increase the mobility of goods and services between the two countries.

However, it should be noted that, despite progress at the formal and institutional level, the real impact of these agreements on the ground often remains more limited due to challenges in practical implementation. For the business community, the main focus should now be on monitoring implementation, institutional coordination and transforming these agreements from formal documents into functional instruments that produce concrete economic results.

How interested is the private sector in mutual investments between Kosovo and Albania?

Nikolin Jaka: The lack of language and cultural barriers, geographical proximity and historical ties between Albania and Kosovo make the process of integrating businesses much easier and faster.

However, a noticeable trend in recent years is that businesses from Kosovo show a much higher interest in investing in Albania than Albanian businesses in Kosovo. In fact, Kosovo has become the leading foreign investor in Albania for 2025, marking a record year for capital flows and strategic acquisitions in the Albanian market.

Bank of Albania data show that for the third quarter of 2025 alone, investments from Kosovo reached 90 million euros, four times more than a year earlier. For the entire 9 months of the year, direct investments from Kosovo reached 153 million euros, registering a dramatic increase of 139% compared to the same period in 2024.

Referring to these figures, we can say that there are several reasons why Albania is of interest to many businesses from Kosovo. First, Albania offers a growing market, especially thanks to the development of tourism and increased consumption, as well as opportunities for expansion in various sectors, which make the country a very favorable destination for investment.

In Albania, meanwhile, there is high demand for housing and property, especially from foreigners and the Albanian diaspora. As a result, as the real estate market in Albania has seen significant growth, construction companies in Kosovo have shown high interest. Construction companies from Kosovo have bought shares in Albanian companies to have legal facilities, to obtain construction permits faster and to build with local partners, seeing numerous opportunities for new projects. In contrast to Kosovo, where the market is oversaturated, Albania offers a larger space.

On the other hand, Albania offers a wide range of incentives for businesses from Kosovo, both officially and through practical facilities.

From our institutional perspective, this trend should be seen not as a flight of capital, but as an opportunity to strengthen nationwide economic cooperation and create a more integrated business space between Albania and Kosovo. Nikolin Jaka: This is the moment to work hard for institutions to create support mechanisms for businesses, making this process more structured, safer and with long-term benefits for both parties. /rtk/

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