The Council of Foreign Investors (FIC) will present the 22nd edition of its White Book, offering an in-depth analysis of Serbia’s business and investment climate. According to “Blic Business,” which has gained exclusive access to the document’s details, while improvements are seen in energy, digitization and financial services, the food sector remains stagnant. Despite some positive developments, the overall assessment from the FIC suggests that the business environment in Serbia has not undergone significant change.
The White Book 2024 highlights that out of the 397 recommendations made in the previous year, 7% have seen notable progress, 16% have shown some improvement, but a staggering 77% of areas remain marked as having “no progress.”
Areas of progress
Among the key areas where progress was made compared to 2023, energy, digitalization, electronic business, financial services protection, public procurement and the pharmaceutical industry stand out. Additionally, labor sector improvements and developments in occupational safety and health were also highlighted.
The FIC applauds the introduction of a single permit process for foreigners’ residence and work, as well as the adoption of by-laws related to the Law on Occupational Safety and Health. On the international front, the FIC noted positive developments like Serbia’s Memorandum of Understanding with the EU on sustainable raw materials, supply chains, batteries and electric vehicles. They also pointed to the Free Trade Agreement with China, effective since July 2024, as a significant milestone.
In digital development, Serbia has made strides with initiatives like eInbox, a service connected to the business registration address, and the “Open Balkans” citizen identification number. Furthermore, the FIC is pleased with the commencement of the development of Serbia’s Artificial Intelligence Strategy for 2024-2030, as well as ongoing updates to key laws such as the Law on Electronic Administration and the Law on Electronic Identification.
In environmental policy, the FIC recognizes Serbia’s progress in defining strategic frameworks related to climate change and sustainability. They also acknowledge further modernization in the financial services sector, particularly in digital banking services, such as open banking and reliable user authentication.
The construction and real estate sectors have seen positive developments, especially with the Amendments to the Law on Planning and Construction, which introduced the concept of “green construction” and improved access to real estate data via the RGZ website.
Investors are also encouraged by the announcement of a new strategic framework for Serbia’s tourism sector.
FIC’s main recommendations for 2024
The White Book also presents fresh recommendations for improving the business environment in Serbia. One major focus is the need for updates to key labor laws, including the Labor Law and the completion of by-laws related to workplace safety and health.
Another key recommendation involves the modernization of labor-legal relations through digitization, including the management of labor-law documents, more flexible working conditions and reforms in wage structure and termination regulations.
As in previous years, the FIC continues to emphasize the need to address critical tax issues, particularly related to property taxes and parafiscal levies. They also recommend further harmonization of food and agriculture regulations with EU standards and improvements in the system of inspection supervision in this area. Special attention is also being given to environmental protection, with calls for strengthening institutional and personnel capacities at the local level, and improving waste management and air quality.
The FIC also emphasizes the importance of stable financing for medicines, suggesting that while the availability of innovative drugs is improving, continued investment in new therapies is essential for long-term healthcare sustainability.
The White Book calls for changes to the Law on Copyright and Related Rights, particularly regarding the method of determining tariffs in sectors like telecommunications and hospitality. Additionally, they stress the need to combat the high rate of the gray economy, particularly in tourism and hospitality services, where physical accommodation providers are a focal point.
The role and impact of the White Book
The White Book is an essential tool for guiding Serbia’s economic development, offering practical recommendations based on the extensive expertise of FIC members. As a long-standing partner of the Serbian government, the FIC aims to help position Serbia as a more competitive, predictable, and economically prosperous destination for investment.
The White Book serves as an annual analysis of the business and investment environment in Serbia, based on developments from October 2023 to October 2024. This year’s edition includes contributions from 59 authors, with 61 texts and 451 specific recommendations for improving the country’s business climate.
Although the FIC’s assessments and recommendations are highly precise, the lack of significant progress in several key areas, particularly food and agriculture, remains a major concern. Despite this, the White Book continues to be a vital document for shaping Serbia’s future business and investment policies.
