(AG Real Estate) OECD : "Investment awards in Serbia"

INVESTMENT AWARDS IN SERBIA

This year in Vienna, the Organisation for Economic Cooperation and Development (OECD) has awarded prizes named "Investors of the Year" during its Fifth Ministerial Conference on Investment and Trade in South East Europe.

This is an award accorded each year by OECD to foreign investors in the South-East European countries. Elseways, the "International Investor of the Year" is an event offering an unique opportunity to present successful examples of international investments in S.E. Europe, which is contributing to the positive business image of the region as a whole, while the leading position of Serbia for the last three years speaks for itself about the investment potential of our country.

This time the awarded projects from Serbia are: The Airport City Belgrade, as the best regional "Greenfield" investment, Banca Intesa as the best investment in Serbia, as well as the ComTrade Group in a newly established category named: "The most innovative domestic investor".

For the sixth consecutive year Serbia is in transition. The projected direction of Serbia's approach to the European Union is more or less expected, and positive. Efforts carried out by the last three Serbian governments, were oriented towards the process of drawing on the existing market environment to the actual and current rules and regulations pleaded by Europe.

Because of the aforesaid, each award or recommendation emanating from competent European authorities, is additionally raising values to all efforts, which in final instance are preparing the state and the society for a market oriented ambience that is prevailing in the Old continent.

The pace and the quality of the influx of foreign investments in Serbia are increasing each year.

This index, besides many others, shows how the domestic market is attractive for investment. It also shows how much is done in the approach and introduction of market conditions, which are recognizable and expected to foreign investors.

2005. awards

For the third consecutive year the rewarded Greenfield Investment for the whole region has come back to Serbia ("Ball Packing" for 2004, "METRO" for 2005 and "Airport City Belgrade" for 2006. "Airport City Belgrade" (ACB) is a joint investment of "Africa Israel Corporation" and "Tidhar group Ltd" from Israel and is representing the first business park in Serbia. This investment, besides the biggest concentration of business area in the country, shall offer to its beneficiaries the comfort of highest world standard as well as all accompanying amenities, full infrastructure, parking areas, etc. - in one word: a city within the city!

A sum of 120 million euros shall be invested in the project. The realization shall be carried out by numerous domestic companies. Once completed, the most modern business park in this part of Europe shall cover an area of 12 ha, offering 126,000 sq.m of first-class business space located at less than a kilometer from the Motorway E-75 and at some 10 minutes from the Belgrade airport Nikola Tesla.

The acquisition of bank Intesa, which is until now, with more than 450 million euros of investment, the biggest financial investment in the banking sector in Serbia. This is, generally speaking, the biggest foreign investment in Serbia during the last year.

This bank employs today in Serbia 2,246 persons of which 409 have been hired during 2005.

Although it has been a starting year, Banca Intesa Beograd has recorded a high credit and deposit activity as a result of ever growing number of clients reaching today more than 800,000 individuals and companies. Deposits have arisen 40% enabling therefore the bank to keep its leading position with business deposits while at the same time strengthening its position in its activities with the population. An increase in foreign currency saving accounts for almost 100 million euros (60%) during 2005 is a proof. The network of Intesa bank accounts some 160 organizational units in more than 100 towns of Serbia.

The influential finance magazine "The Banker" has proclaimed Banca Intesa Beograd for the Bank of Year (2005) in Serbia and Montenegro.

The award attained by company "ComTrade Group" is to be emphasized in particular since we have here, for the first time this year, an award from OECD. This domestic , but also the most prominent IT company in the region, has received this award, among other things, for the electronic system developed for the needs of Serbian Ministry of Justice. Spinnaker has developed a database of legal regulations and legal practice for judicial institutions of Serbia which aim is to promote the quality of legal system through a fast access to valid legal framework of relevant cases from the judicial practice. Currently Spinnaker New Technologies is a member of ComTrade Group, included in the development of this system for the Rrepublic of Macedonia. The company has also developed a web portal under the name of "Portal4partners" - which will for attending high quality European standards, be present on domestic market but also on demanding market of EU.

In the same time the company called Spinaker New Technologies, a member of ComTrade Group, has developed a web portal named "Portal4partners" which thanks to the implementation of European high standards, shall be distributed both on domestic and on demanding market of European Union.

By founding the first technology centre and by opening the new company's building ComTrade Technology Centre in the beginning of 2006, the company is becoming a regional scientific and technological instigator with more than 550 employees.

In accordance with its development strategy to position itself as a leading system integrator in the region, ComTrade Group is planning, for its main orientation in this field of activity to sell corporative software solutions to public administration and big clients as well as the development of software and applications for mobile telephony and PDA (Personal Digital Assistant) devices.

A year ago…

For the previous "competition year 2004" during the Ministerial Conference held in Sofia in 2005, nominated projects from Serbia have won awards. For the best Greenfield Investment in the region the award was won by METRO Cash and Carry and Coca Cola HBC as investments in Serbia.

In the beginning of 2005 METRO has opened a distribution centre in Belgrade district Krnjaca, first of the kind in Serbia. With an investment worth 15 million euros, 400 persons have been employed and within 3 months a wholesale store has been built with an area of 8,300 sq.m. Also, with the arrival of the leading producer of non-alcoholic beverage Coca Cola, local economy has gained a great opportunity to increase its exports for the fact that with the opening of its own production in Serbia, Coca Cola has opened the door of its mighty marketing and distribution machinery which will additionally promote the potential and the quality of local economy.

And two years ago…

The nomination from Serbia in the competition "International Investor of the Year 2003" for the best Greenfield Investment which was the winning one, represents the investment project by the name of Ball Packaging corporation. It realized then the 1st Stage of its investment employing 120 workers which in 5 shifts are supplying the market with products assigned to breweries and to soft drink producers. Once the investment completed, we shall have some 100,000 sq.m of modern production space. The actual installed production line makes 2.2 million units i.e. 1700 units per minute. The yearly output is 650 million units.

In other respects Ball Packaging, as an investor in Serbia, has enhanced the "value" and the competitivity of the Serbian market. In Europe this corporation has 11 production plants (4 in Germany, 3 in England, 2 in France 1 in Poland and 1 in the Netherlands) and a yearly turnover of more than 1 billion euros with a production of more than 11 billion units. In Europe the company employs a total of 2,500 persons and has a firm 2nd position in Europe with 30% of market.

It is interesting to mention that the gravitational market of Ball Packaging programme from Serbia spreads to neighboring countries of ex Yugoslavia also to Bulgaria, Romania, Hungary and Albania. Once again this indicates that Serbia, in the near future, will take over once again the market leadership in the region.

SIEPA - Serbia Investment & Export Promotion Agency has nominated the best Greenfield Investment and the best overall investment in the region. Besides, SIEPA with its activities and in cooperation with the commercial section of the US embassy in Serbia has nominated Serbia the past winter for being "The Market of the Month" in accordance to the US Commercial Service. Thanks to the latter, our country has gained this flattering title in January.