The Legal Framework of Foreign Direct Investments in Kosovo

• Author: Kreshnik Kaçiu - Lulzim Ejupi
• Position: Master of Laws, LL.M, University of Maastricht, Republic of Kosovo - Master of Sciences, Mr. Sc, University of Prishtina Hasan Prishtina, Republic of Kosovo
• Pages: 144-157

ACTA UNIVERSITATIS DANUBIUS Vol. 13, no. 3/2017

144

The Legal Framework of Foreign Direct

Investments in Kosovo

Kreshnik KAÇIU

1

, Lulzim EJUPI

2

Abstract: This paper deals with the issue of Kosovo‟s Legal Framework in attracting the Foreign

Direct Investment and the current developments in this field. This subject matter has been in the focus

of Kosovo Government for a long time, thus FDI seems to be an important instrument of Kosovo‟s

economic growth. Legal Framework covering foreign investment differs depending in each country‟s

legal system. Many authors throughout the history have mentioned the impact that a good Law might

have in setting up a good and a comprehensive legal framework. On the other hand, many others

argue that foreign investments are mainly attracted if there is a strong political willingness and a

medium legal framework which covers direct investment. We will further analyze the current Legal

Framework in the field of for eign investment and discuss a number o f cases, applying the

comparative method. The paper will give an overvie w of the definition of foreign investment and its

legal and economic impact. We will specifically focus on the Law on FDI, the Law on Strategic

Investments and other investment related laws. We will also analyze the Law approximation process

with EU Acquis, the Trade Agreements, and finally the entry into force of the SAA.

Keywords: Legislation; Investment; Law approximation process; European Union

1. Introduction

Foreign Direct Investments are becoming a very important method of the further

development in the economies of the developed countries in general and the

fastening of the development in the economies of the developing countries in

particular. Being located in the heart of the Balkans, Kosovo has strategic

geographical position; the highway with Albania and the plan for the construction

of the highway with Macedonia are expected to reduce the time of transport to

1

Master of Laws, LL.M, University o f Maastricht, Republic of Kosovo, Address: Lupç i Poshtëm,

n.n. 11050, Podujevë, Republic of Kosovo, Tel.: +37744899650, E-mail: kreshnik.kaciu@gmail.com.

2

Master of Sciences, Mr. Sc, University of Prishtina Hasan Prishtina, Republic of Kosovo, Address:

Str. Lidhja e Prizrenit, n.n., 10000, Prishtina, Republic o f Kosovo, Tel.: +37744995955,

Corresponding author: lulzim.ejupi@rks-gov.net.

AUDJ, vol. 13, no. 3/2017, pp. 144-157