Business Environment


Belgrade is developing at a vigorous rate into one of the most attractive investment locations in this part of Europe. The capital of Serbia has, since the inception of the democratic reforms of 2000, attracted more than 3.5 billion dollars of direct foreign investments, primarily in the service sector, such as banking, retailing and telecommunications, but also in other industries, such as property development and manufacturing.

Today a large number of multinational companies are based in Belgrade: Telenor, Mobilkom Austria, Banca Intesa, Metro Cash & Carry, Microsoft and Ball Packaging Europe, to name but a few.


The best affirmation of the great business potential of Belgrade was the City of the Future in Southern Europe prize, awarded in 2006 by the prestigious FDI Magazine, published by Financial Times. From among competing cities from Slovenia, Croatia, Bosnia and Herzegovina, Macedonia, Albania, Bulgaria, Romania, Greece, Turkey, Cyprus and Malta, the Serbian capital was selected on the basis of a range of positive indicators such as:

  • economic potential,
  • operating costs,
  • human resources,
  • transport network,
  • information and communications technology,
  • quality of life
  • and investment promotion strategy.

Besides being an affirmation of the radical reform of the business environment, this award has a much wider significance – it serves as a recommendation to international investors as to which locations offer the best conditions for investment.


During the last three years the Serbian economy has experienced an exceptionally high average growth of 7%, and Belgrade contributes as much as a third of the gross national product which in 2006 amounted to 31 billion dollars. Amongst the sectors showing the fastest growth are telecommunications, construction, transport and retailing. In addition, intensive average GDP growth of 7% is projected for the next few years.


The purchasing power of Belgrade’s population is growing rapidly. With average monthly net earnings of 435 Euros in August of this year, Belgrade is at the top of the earnings scale for Serbia, and foreign retail chains – Veropoulos, Agrokor, Metro Cash & Carry, Mercator and Merkur - have built a large number of hypermarkets in the capital.


At the same time, inflation was last year reduced to a single digit figure of 6.6%. Projected average price rises for 2007 are 6.5%.


Economic stability has been further facilitated through the record currency reserves held by the National Bank of Serbia, which amount to more than 13 billion dollars.

Following the appreciation of the dinar in the second half of 2006, the exchange rate has been fully stabilised and is formed in the inter-bank market, with minimal central bank intervention.