Serbia and Montenegro - Foreign investment

Foreign investment was severely restricted during the years of the economic embargo. Since the sanctions have been lifted, foreign investors from neighboring countries, Russia, and Asia have expressed an interest in capital investment. The main sectors attracting the interest of foreign investors are metal manufacturing and machinery, infrastructure improvement, agriculture and food processing, and chemicals and pharmaceuticals. Foreign investors may hold majority shares in companies.

In 1997, foreign direct investment (FDI) inflows into Serbia and Montenegro reached $740 million, but dried up with the onset of the conflict in Kosovo. FDI inflows averaged $122.5 million in 1998 and 1999, then fell to $25 million in 2000. In 2001, FDI inflow reached $125 million.

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