Due to the new geopolitical context, Romania could attract up to 2 billion euros in new foreign investments by the end of this year, according to public data and already existing market negotiations in the middle of the year. , analyzed by ONV LAW.
According to the analysis, Romania is progressing on an upward trend in terms of investment attractiveness, with the volume of foreign investment increasing by more than 50% in the middle of the current year, compared to the same period in 2021.
Until recently, Ukraine represented an important strategic point for many global companies planning large business investments in the neighboring country, mainly because of tax facilities and accessible labor. The war that started at the beginning of the year has however changed these perspectives and Romania is now one of the countries absorbing a large part of the foreign capital available, together with Poland. Along with the expected new investments, several companies have relocated or plan to relocate their activity from Ukraine or Russia to our country, which also represents new local investments.
Bucharest, Moldova and western regions of Romania are preferred by investors
Automotive, IT&C, retail or logistics are the main sectors that will attract new foreign capital in the next period. The areas favored by foreign investors are those close to the capital, those of Banat and Crisana, because of their proximity to Western Europe, but also those of Moldova, close to Ukraine.
The agri-food sector will also register an increase in foreign investment in the next period, particularly for the production of fertilizers or processing, believe the specialists of the ONV LAW. Already 4 Ukrainian and Russian companies have announced their relocation to the southern regions of Romania.
“Romania is in an advantageous position at the moment, as it has not been several times in its history. Along with territorial security, Romania must offer foreign investors fiscal stability and predictability, as well as a more flexible bureaucratic mechanism. In addition, a solid education strategy is needed to prepare the next generations who will constitute the local workforce. This could be a watershed moment for Romania, for many years to come,” says Radu Nemes, Managing Partner of ONV LAW.
Among the companies that intend to invest in Romania in the next period are groups from Italy, Germany, France and the United States, according to the analysis.