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flag Belarus Belarus: Investing

In this page: FDI in Figures | Why You Should Choose to Invest in Belarus | Procedures Relative to Foreign Investment | Investment Opportunities

 

FDI in Figures

In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. However macroeconomic fragility and policy uncertainties are driving investors to caution.

Foreign capital inflow has increased in the first half of the 2000s. However, it has been declining since 2008 due to the global economic crisis on the one hand, and the country's strong dependence on Russia, on the other hand. Belarus' five main investors are Russia, Switzerland, Austria, Germany and Latvia. The most attractive sectors to foreign investors are construction and metallurgy, consumer goods, chemical and petro-chemical products, wood, transport and the medical sector.

In 2013 FDI reached USD 1.442 billion. The recovery of FDI inflow into Belarus in 2014 will depend on the economic health of its Russian partner.

Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).

 

Country Comparison For the Protection of Investors

  Belarus Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 7.0 7.0 7.0 5.0
Index of Manager’s Responsibility** 1.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 5.3 5.9 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

 
Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 4,0021,4642,233
FDI Stock (million USD) 13,00814,58616,729
Performance Index*, Ranking on 181 Economies 38--
Potential Index**, Ranking on 177 Economies 27--
Number of Greenfield Investments*** 311918
FDI Inwards (in % of GFCF****) 17.67.09.5
FDI Stock (in % of GDP) 21.823.123.3

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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Why You Should Choose to Invest in Belarus

Strong Points
Belarus' main strong points are:
- An advantageous geographical position, the country being a point of entry into Europe and into the CIS countries;
- A number of measure favorable to direct foreign investments;
- Political and economic stability;
- A Qualified and cheap labor force.
Weak Points
The country's weak points are still many.  We can particularly name:
- A high level of corruption;
- The slowness of administrative procedures;
- Low quality infrastructures.
Government Measures to Motivate or Restrict FDI
For a number of years, the government has been seeking to enhance the country's appeal at a global level. It has therefore implemented a number of measures to ensure investor protection, has created six duty-free zones in the country and set up Investment Advisory Offices as well as the National Investment  Agency.

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Procedures Relative to Foreign Investment

Freedom of Establishment
The country is open to direct foreign investment but a number of sectors are still managed by the State, such as the energy distribution sector. For more information go to the National Investment Agency website.
Acquisition of Holdings
A majority holding interest in the capital of a local company is legal in Belarus. For more information go to the National Investment Agency website.
Obligation to Declare
The World Association of Investment Promotion Agencies in the country provides information about authorizations necessary for establishment of businesses.
Competent Organization For the Declaration
National Investment Agency website
Requests For Specific Authorizations
In this country, where administration rules all, many sectors require a specific authorization. For more information, go to the website of the National Investment Agency.

Learn more about Foreign Investment in Belarus on Globaltrade.net, the Directory for International Trade Service Providers.

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Investment Opportunities

Investment Aid Agency
Investment Opportunities of the Republic of Belarus
Tenders, Projects and Public Procurement
Tenders Info, Tenders in Belarus
Globaltenders, Tenders & Projects from Belarus
DgMarket, Tenders Worldwide
Other Useful Resources
National Investment Agency
 
 

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Learn more about Investing in Belarus on Globaltrade.net, the Directory for International Trade Service Providers.

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Last Updates: October 2014