The Kosovo Assembly approved the new Law on Sustainable Investment on October 19, 2023. The purpose of this law is to establish a comprehensive legal framework on protection, promotion and encouragement of sustainable investments in Kosovo. Upon entry into force of the Law on Sustainable Investment, the existing Law No. 04/L-220 on Foreign Investment and the Law on Strategic Investments in the Republic of Kosovo will be replaced and consolidated into a single law.
The objectives of the Law on Sustainable Investment are to attract investments, remove legal or administrative barriers, and establish screening mechanisms for the review of investments to ensure their compliance with the public interest. To achieve these goals, the Law on Sustainable Investment has partially transposed EU Regulation 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union.
According to the new Law on Sustainable Investment, priority sectors for investments in the Republic of Kosovo include manufacturing and processing industry, agriculture, information and communication technology, education and training, research and innovation, health, tourism, sewage and waste administration, transport, energy and mines. The new law has established the Agency for Investment and Export (AIE) and Agency for Support to Enterprises in Kosovo (ASEK) while terminating KIESA, an agency previously tasked with promoting investment in Kosovo.
Currently, the Law on Sustainable Investments has not yet entered into force as several elected members of the Parliament have requested a constitutional review of the law. Therefore, the fate of the Law on Sustainable Investment is pending a decision from the Constitutional Court before it enters into force.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.