Reinvested profit makes up 3rd of foreign investments in Serbia – EUR 384 million leaves country in dividends

In the nine months of 2016, investments in Serbia amounted to EUR 1.3 billion, a third of which, EUR 438 million, is reinvested profit.

Foreign investors took EUR 384 million out of the country in dividends. Such a structure of foreign direct investments is a normal process in market economy, as those who invest here at some point wish to transfer their assets elsewhere, says Professor Ljubodrag Savic of the Faculty of Economics. He also explains for N1 why there are not more local investments.

– The amount of assets they've reinvested is larger than what they've taken out. In any case, it's good that foreign investors are coming to Serbia, that there's that kind of activity. The worst kind of situation is when, at some point, foreign investors come and when, after some time, to use a common expression, investments start escaping the country. Another problem is that we don't have local investors who are ready to go on that kind of a business adventure, if I may call it that. They have neither the managerial skills nor the willingness to wait to invest into some kind of industrial production, which means a pretty high amount of money, to deploy technology and wait for several years to make a profit – Savic said for Infobiz.

foreign investments in Serbia

Ljubodrag Savic

reinvested profit

local investments