The U.S. Department of State has published its 2026 report on Albania’s investment climate, highlighting challenges related to corruption, organized crime, money laundering, property rights and competition.
The 40-page report notes that despite the increase in foreign investment, investors continue to face a lack of transparency, informality, difficulties in contract enforcement and limited competition.
According to the document, corruption in public administration, the justice system, public procurement and the media ranks among investors’ main concerns. The report also refers to the impact of proceeds from criminal activities on the economy, noting that money from drug trafficking and tax evasion can distort competition.
Another concern reported by investors is the risk of extortion or blackmail by public officials, media outlets and criminal groups. The document does not identify specific cases or individuals, but lists the phenomenon among the problems affecting the business climate.
Strategic Investments and PPPs
The report also raises questions about the implementation of the Strategic Investments Law. According to the document, most approved projects have been concentrated in the tourism sector and financed by domestic companies, while foreign investors have reported delays in receiving responses from institutions.
Regarding public-private partnerships (PPPs), the U.S. Department of State highlights limited competition, weak analysis and a lack of technical expertise in some projects.
Property Rights Remain a Problem for Investors
A significant part of the report focuses on property registration. Citing EU data, the document states that 80% of previously registered records require verification, while only 43% of property titles and 10% of cadastral maps have been digitized.
Problems related to property ownership and registration are considered particularly significant for investments in coastal and mountainous areas.
76 State-Owned Enterprises
The report also cites OECD data indicating that Albania has 76 companies that are wholly or majority state-owned. However, the country does not publish a complete list of these companies, making it more difficult to assess their assets, revenues and number of employees.
According to the report, the independence of state-owned enterprise boards remains limited, while management appointments may be influenced by political decision-making.
Money Laundering and Justice Reform
The U.S. Department of State notes that Albania was removed from the FATF grey list in 2023, but continues to be considered a major money-laundering jurisdiction in U.S. reports.
At the same time, the report highlights progress by the Special Anti-Corruption Structure (SPAK) and the National Bureau of Investigation (NBI) in investigating and prosecuting corruption and organized crime cases, including those involving senior officials.
Foreign Investment Reaches Record Levels
Despite these challenges, foreign direct investment in Albania has increased. According to the report, FDI reached $1.84 billion in 2025, up from $1.72 billion in 2024.
Real estate accounted for the largest share of investment inflows at 34%, followed by financial services at 18%, extractive industries at 10% and trade at 10%.
The report also identifies high levels of informality, labor shortages and emigration as significant challenges for businesses.
Overall, the U.S. report presents a mixed picture of Albania’s investment climate: foreign capital inflows have increased significantly, while corruption, property-related issues, informality, competition and transparency remain among investors’ main concerns.
The post U.S. State Department Report on Albania: Foreign Investment Rises, but Corruption and Informality Remain Concerns appeared first on Euronews Albania.
