The US Department of State published the 2026 Investment Climate Report on Albania. The 40-page document ( READ HERE ) highlights challenges related to corruption, organized crime, money laundering, property rights, and competition.
The report notes that despite the increase in foreign investment, investors continue to face a lack of transparency, informality, difficulties in enforcing contracts, and limited competition.
According to the document, corruption in public administration, the justice system, public procurement and the media are among the main concerns of investors. 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, the media 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 Law on Strategic Investments. According to the document, most of the approved projects are focused on the tourism sector and have been financed by local companies, while foreign investors have reported delays in receiving responses from institutions.
Regarding public-private partnerships (PPP), the US 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 portion of the report focuses on property registration. Citing EU data, the document claims that 80% of previously registered data requires 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 important for investments in coastal and mountainous areas.
76 state-owned enterprises
The report also cites OECD data showing 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 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 can be influenced by political decision-making.
Money Laundering and Justice Reform
The US State Department notes that Albania was removed from the FATF grey list in 2023, but continues to be considered a major money laundering jurisdiction in US reports.
At the same time, the report highlights the progress made 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 high-ranking officials.
Foreign investments reach record levels
Despite these challenges, foreign direct investment in Albania has increased. According to the report, foreign direct investment 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 US report presents a mixed picture of the investment climate in Albania: foreign capital inflows have increased significantly, while corruption, property-related issues, informality, competition and transparency remain among the main concerns of investors. ©LAPSI.al
