Istanbul, 3 June, 2024
For the first time, the Economic Forum between Kosovo and Turkey is being held, which is taking place in Istanbul. This forum brings together businesses from Kosovo and Turkey, with the aim of strengthening cooperation and expanding investment opportunities. The start of the event was preceded by a bilateral meeting between the Prime Minister of the Republic of Kosovo, Albin Kurti and the Minister of Trade of Turkey, Ömer Bolat.
In his speech at the opening of the Forum, the Prime Minister expressed his gratitude for the deep relations between Kosovo and Turkey, underlining the role that this forum will have in the further advancement of cooperation between our two countries.
“Our ties are set on an ever-increasing trajectory of economic cooperation, with Turkish investments ready to play a vital role in the development of Kosovo. The main areas of cooperation include trade, defense, technology and light industry. Here with us today are dozens of successful companies from Kosovo, as well as representatives of the Kosovar-Turkish Chamber of Commerce, the Association of Wood Processing in Kosovo and the Association of Tree and Vegetable Processors, demonstrating the potential and investment perspectives that Kosovo offers to Turkish investors”, said the prime minister.
Furthermore, he also addressed the development and progress that the country has seen in the last three years, where he then focused on improving the environment for doing business and the proactive development of three groups of the private sector, agriculture, industries and the technology sector.
“Kosovo boasts a democratic, secure, stable and open market economy, supported by partnerships with the European Union, the United States of America, Germany, Great Britain, France, Italy and many other countries around the world. Known for its advances in the rule of law, political rights, civil liberties and electoral democracy, Kosovo has been recognized as the most democratic country in the Balkans. Therefore, Kosovo represents an ideal destination for Turkish businesses that seek to rebuild their production units in a country oriented towards democratic values and economic stability”, concluded the prime minister.
After the Prime Minister’s speech, the forum continued with two discussion panels. One on investment opportunities in infrastructure, where as panelists were the Deputy Minister of Environment, Spatial Planning and Infrastructure, Hysen Durmishi, the Deputy Minister of Economy, Getoar Mjeku, and the Deputy Minister of Culture, Youth and Sports, Daulina Osmani. Meanwhile, the second panel, composed of the Minister of Agriculture, Forestry and Rural Development, Faton Peci, the Deputy Minister of Industry, Trade and Entrepreneurship, Mentor Arifaj.
Prime Minister Kurti’s complete speech:
Dear Emilija Rexhepi, Deputy Prime Minister of the Republic of Kosova,
Dear Prof. Dr. Ömer Bolat, Minister of Trade of Türkiye,
Dear Mr. Nail Olpak President of the Foreign Economic Relations Board (DEIK),
Dear Mr. Agon Vrenezi, Ambassador of the Republic of Kosova to the Republic of Türkiye,
Dear Mr. Faton Peci, Minister of Agriculture, Forestry and Rural Development,
Dear Mr. Fikrim Damka, Minister of Regional Development,
Dear Mr. Elbert Krasniqi, Minister of the Local Government Administration,
Dear Mr. Batuhan Özdemir, Chairperson of the Türkiye-Kosova Business Council,
Dear deputy ministers, members of Parliament of the Republic of Kosova,
Distinguished representatives of the private sector, future investors in Kosova,
Ladies and gentlemen, sisters and brothers,
It is truly a pleasure to address you today at the first ever Kosova-Türkiye Economic Forum. As you all may know, Kosova and Türkiye share a profound and enduring relationship. Our bond, steeped in history and enriched by mutual respect, cooperation, and shared aspirations, serves as a model for international partnership. I had the pleasure of meeting His Excellency, President of the Republic of Türkiye, Mr. Recep Tayyip Erdoğan, on Friday, together with Vice President, Mr. Cevdet Yılmaz and Minister of National Defense, Mr. Yaşar Güler, where we discussed the important roles Türkiye and Kosova play in preserving regional peace, security and stability, as well as how we can further strengthen the great relations between our two countries, especially in defense and economy.
I also had the pleasure of meeting with His Excellency, Mr. Hakan Fidan, the Minister of Foreign Affairs of Türkiye, as well as had the privilege of laying flowers at Atatürk mausoleum, paying homage to his enduring legacy as a visionary leader whose influence extends far beyond the borders of Türkiye. Atatürk’s principles of modernization, progress and peace, resonate deeply with the Albanian people, who share a historical connection with Türkiye. The relationship between our nations, rooted in shared values and mutual respect, continues to flourish, creating numerous opportunities for collaboration and growth.
I am delighted to be here in Istanbul, a city that embodies the spirit of connectivity and cultural richness—a spirit that the Republic of Kosova and the Republic of Türkiye share deeply.
Before delving into the main topic at hand, I’d like to shine a spotlight on a remarkable figure in Turkish football history of Albanian descent: Ali Sami Frashëri. He was the son of one of our most distinguished Albanian figures in education and literature, Sami Frashëri. Ali bey established Galatasaray sports club, one of Turkey’s most prestigious football teams. His vision and leadership were instrumental in laying the foundation of the club in 1905, almost 120 years ago, fostering a strong sense of community and sportsmanship. Galatasaray holds the title as the most successful Turkish football club in European competitions. However, as someone neutral in the vibrant arena of Turkish football, I wish all the best to Fenerbahce and Besiktas as well, whose fans I’ve heard create an electric atmosphere at every match that’s hard not to admire.
And last night, I was waiting my ministers to join me at the meeting at the lobby hotel where I’m staying and they were a bit late. When I asked them why you are late at this important meeting prior to the forum today, they said well, we landed at the airport at the same time with Jose Mourinho. So they have been forgiven for being late at the meeting.
Now, just as fans unite under the banners of their favorite football clubs, let’s pivot to another field where unity and support are key. Türkiye was one of the first countries to recognize Kosova’s independence in 2008, a gesture that cemented the friendship between our countries. This recognition was not just a diplomatic formality. It was an affirmation of the right to self-determination and a testament to Türkiye’s commitment to supporting the sovereignty and independence and territorial integrity of Kosova.
Our bonds are set now to extend into ever-growing economic collaboration, with Turkish investments poised to play a vital role in Kosova’s development. Key areas of cooperation include trade, defense, technology, and light manufacturing. Here with us today are tens of flourishing companies from Kosova, as well as representatives of the Kosova-Turkish Chamber of Commerce, the Wood Processing Association to Kosova, and the Association of Fruits and Vegetable Processors, demonstrating the potential and investment prospects Kosova offers to Turkish investors.
Kosova, located at the heart of the Balkan region, acts as a crossroads between Europe, the Middle East, and North Africa, namely the Emena region. Since our independence sixteen years ago, Kosova has experienced rapid development and growth, boasting a robust average annual GDP growth rate of 6.2% over the last three years. The inflation rate for the april month this year stood at only 2.1%. Kosova also maintains the youngest demographic structure in Europe, with an average age of 31, and strong public finances, highlighted by the lowest general gross debt among Balkan nations in 2022, at only 17.3%. This allows us securing better interest rates for long-term developmental loans for significant public infrastructure investments.
Kosova Government has achieved significant progress across multiple sectors. Over the past three years the country’s exports and foreign direct investments doubled. The defense budget more than doubled, with substantial investments in armaments and advanced military equipment. In agriculture, there has been an increase of 29% in agricultural exports, and over 30,000 farmers receive annual support. Kosova’s cultural and sports sectors have flourished, with winning the bid to host the 2030 Mediterranean Games, 26 countries competing in 24 sport disciplines, and substantial investments in cultural heritage and sports infrastructure. Health and education have seen notable improvements, including the addition of new essential medicines and scholarships for students, particularly in STEM fields, science, technology, engineering and maths. Significant investments and projects in energy, infrastructure, and digitalization have enhanced the country’s development. Kosova’s foreign policy has strengthened, with advancements in NATO and EU membership applications, reflecting the government’s commitment to economic development, security, and international integration.
Kosova leads the Western Balkans in real economic growth from 2023 to 2025 according to the World Bank, ranks first in the region and second globally in the rule of law improvements as per the World Justice Program, secures the second position in Europe and third worldwide in enhancing political rights and civil liberties, according to the Freedom House Report, and stands unparalleled in Western Balkans for Electoral Democracy as identified by the V-Dem Institute. So economic growth and democratic progress in our country, go hand in hand together, not one at the expense of the other.
Our country recently achieved its inaugural sovereign credit rating from FitchRatings, which will also enhance foreign investment, lower borrowing costs, improve access to global capital markets, and boost economic growth.
These positive developments have made Kosova’s business environment very friendly and together with the proximity to the EU market we expect a continued increase of foreign direct investment in our country, including we hope from Turkish firms such as yours.
Our government has been actively accelerating reforms to enhance our country’s business climate. Currently, we are planning and implementing over 50 significant infrastructure projects requiring an investment of more than 7 billion euros, respectively 3 billion in transport, 2 billion in environment, and another 2 billion in energy sectors. This includes approximately 1.2 GW of renewable energy capacity. Approximately half solar, half wind. We’ve recently concluded a successful 100 MW solar energy auction and inaugurated the American Millennium Challenge Corporation’s battery storage project, a landmark 236 million euros initiative, which makes us globally the largest per capita battery storage in the world. Our aim is to bolster our energy security, with a target to increase renewable energy usage to 35% by 2031.
As an international vote of confidence on Kosova’s future, EBRD in February this year in its biannual summit in London, committed through a Memorandum of Understanding, 400 million euros of new funding for infrastructural upgrades, the green economy transition, regional integration and the private sector.
In terms of the private sector, we’re committed to the proactive development of three groups of sectors. First is Agriculture and Food Processing, second is Manufacturing, Electrical Equipment, Metal, Plastics, Wood, and third is IT-enabled BPO Services, software development, digital accounting, digital marketing.
Let’s start with the first, agricultural and food processing is crucial for our food security, rural employment, and reducing import dependency. The government has significantly increased support for these sectors to stimulate rural economies and sustainable development. We have increased with budget allocation, subsidizing for farmers up to 216% in comparison to three years ago.
Second is manufacturing, particularly in light industries, which is vital for our economic resilience, job creation, and skill development. We have a longstanding tradition in wood-working, with a well-developed industry boasting around 1,300 furniture makers across Kosova, providing a solid foundation for further growth in these sectors. As His Excellency Minister of Trade announced, third week of November please do come to Kosova, for this wood processing conference. And we have not singled out a specific day, we said third week of November, because we want you to come and spend a week in Kosova, not one or two days only.
And third, Kosova is capitalizing on the global ICT boom, experiencing significant growth in IT-enabled BPO services such as software development, digital accounting, digital marketing and this growth is supported by a skilled, multilingual workforce of approximately 14,000 professionals. Our country’s competitive advantages include its strategic location, full broadband internet penetration, and young, tech-savvy talent pool, making it an attractive tech hub in Europe. Kosovo’s vibrant tech sector boasts over 1,500 companies, with 85% of them engaged in exporting services, and tech service exports have grown by almost 300% in the past three years. Ten universities offer ICT study programs, and the government, alongside development partners, is training over 3,500 youth yearly and providing nearly 5,000 STEM scholarships for girls.
Kosova boasts a democratic, secure, stable, and open-market economy, supported by partnerships with the European Union, the United States, Germany, UK, France, Italy and many other countries around the world. Recognized for its advancements in the rule of law, political rights, civil liberties, and electoral democracy, Kosova has been acknowledged as the most democratic country in the Balkans. Therefore, Kosova presents an ideal destination for Turkish businesses looking to reshore their production units to a nation aligned with democratic values and economic stability.
By investing in Kosova, you will gain access to an inherently business-friendly environment. Our streamlined regulatory framework facilitates the creation of businesses, earning Kosova a notable 12th ranking globally by the World Bank for “starting a business.” Taxation regulations in Kosova are highly favorable for businesses, with 0% custom duty on exports, the second-lowest corporate tax rate in Europe at 10%, and exemptions on customs duty for imports of machinery and raw materials intended for further processing by manufacturing companies.
Operational costs are pretty low, from stable and affordable electricity supply to cheap granting premises, and recently we have engaged in a project which is very dear to my heart, bridging skills gap by linking labor market with professional education. For every diploma in a school, you will be able to get a job in the market. And in this way in 14 municipalities, 23 schools, 12 profiles, all together 920 pupils and students have been enrolling dual education system, what our diaspora, joint diaspora, Albanian and Turkish diaspora in Germany, call it “ausbildung”. So, we want to link labor market with professional education, economy with education. In this century, there is one thing more important than education and economy, and that is the link between the two. The link between education and economy, will define the fates of countries, societies and people.
In conclusion, the relationship between Kosova and Türkiye is a beacon of what can be achieved through cooperation, respect, and shared values. It is a relationship that has weathered the test of time and emerged stronger, a testament of the enduring bonds of friendship and mutual support. As we celebrate our past and look forward to a promising future, let us continue to work together, hand in hand, for the prosperity and well-being of our people and our countries.
Thank you, teşekkür ederim, faleminderit shumë.
Last modified: June 4, 2024