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In this page: FDI in Figures | Why You Should Choose to Invest in Slovenia | 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.

Slovenia is totally open to foreign investments in accordance with the principles of the EU and the OECD, and do not disciminate between national and foreigner investors. The main investors are Austria, Switzerland the Netherlands, Germany, Italy Croatia, Belgium and Luxembourg. The attractive sectors are financial services and insurance, distribution, commercial service and leasing, chemicals products tyres and plastic products, engineering, paper telecommunication and transport.

Foreign investments have strongly declined due to the international economic crisis of 2008-2009 and the difficulties of the European continent. Only a global recovery will allow a return of foreign investment in the country. Projects in the energy sector, rail infrastructure, regional centre of sewage treatment and waste co-financed by European funds will make the Slovenian market once again attractive. In 2013 FDI totalled only USD 150 million.

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

  Slovenia Eastern Europe & Central Asia United States Germany
Index of Transaction Transparency* 5.0 7.0 7.0 5.0
Index of Manager’s Responsibility** 9.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 6.0 9.0 5.0
Index of Investor Protection**** 7.3 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) 998-59-679
FDI Stock (million USD) 15,15815,46915,235
Performance Index*, Ranking on 181 Economies 167--
Potential Index**, Ranking on 177 Economies 81--
Number of Greenfield Investments*** 201610
FDI Inwards (in % of GFCF****) 10.7-0.7-8.2
FDI Stock (in % of GDP) 30.234.132.5

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 Slovenia

Strong Points
Slovenia has many strong points, among them:
- An easy access to regional markets, being geographically located in the center of Europe;
- A qualified workforce;
- A good quality of life;
- Economic and political stability:
- Quality infrastructure 
Weak Points
Slovenia still has to face several challenges, among them:
- Low mobility of workforce;
- High social security contributions from salaries;
- A small domestic market;
- A strong exposure to global economic gyration due to the country's openness.
Government Measures to Motivate or Restrict FDI
Slovenia has an ambivalent attitude towards FDI: on one hand, the country would like to be open to investment while on the other, it  remains very cautious regarding foreign investors. Therefore, the government FDI cost-sharing grant scheme is trying to set up measures that will have a positive effect in the creation of jobs, knowledge and technology transfer, improvement in the regional development and it could stimulate the alliance between Slovenian companies and foreign investment.
Concessions belonging to the state are available for investments of more than 0.5 million Euros in the sectors of industry, strategic services (customer service centers, systems and retail business, regional company headquarters), research and development. The type of investment requested the most is high technologies known as "green" technology.
The Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) has prepared a program for promoting the growth of companies in foreign ownership or mixed. The main objective of the program is to stimulate the FDI and to create new jobs in the context of the current economic crisis. 

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Procedures Relative to Foreign Investment

Acquisition of Holdings
A majority holding interest in the capital of a local company is legal in Slovenia.
Obligation to Declare
Slovenia has a fully liberalized foreign investment regime - foreign investments enjoy full national treatment.
Requests For Specific Authorizations
The only exception to the principle of full national treatment relates to the right of branches of foreign companies originating in non-EU member states to obtain ownership over real estate in Slovenia. Foreign investment in the companies related to the production and trade of armaments is subject to the prior approval of the government. For more details click here.

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

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Investment Opportunities

Investment Aid Agency
Invest Slovenia
Tenders, Projects and Public Procurement
Uradni-list, Public Procurement in Slovenia
Tenders Info, Tenders in Slovenia
Globaltenders, Tenders & Projects from Slovenia
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide
 
 

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

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Last Updates: October 2014