Albania’s legal and investment landscape is currently being shaped by a mix of large-scale sectoral projects and ongoing structural reforms, according to Kalo & Associates Partner Oltjon Dano.
"Tourism and real estate are clearly the most active sectors at the moment, particularly in the south of the country," Dano begins. "We are seeing a number of high-value projects attracting significant investor interest, some of which rely on financing from international financial institutions. A good example is the Sazan Island project, which is financed by international investors and supported by international financial institutions."
Moreover, Dano reports that renewables are another major growth area, with interest being especially strong in wind and solar. "One of the most notable developments is a 600-megawatt wind project in northern Albania, which has already received preliminary approval. This is one of the largest wind projects the country has seen to date," he says. At the same time, the solar market continues to consolidate, with numerous projects underway.
Furthermore, Dano says that public construction and infrastructure projects are also very active. "Key examples include the interconnection of power lines with Italy, a project expected to be financed at around EUR 1 billion by international financial institutions, and the construction of the Vlora Airport," he says. "In addition, construction of the new Port of Durres in Porto Romano is moving forward, with implementation expected to commence imminently. These projects require complex coordination between public authorities, financiers, contractors, and regulators."
However, looking at the overall M&A activity, Dano reports it has been relatively modest. "In recent months, there have been more competition-authority notifications than actual acquisitions. Notable transactions include the sale of one major insurance group to an Albanian shareholder, the acquisition of KFC operations by Kosovar investors, and another transaction involving SPAR. Beyond these, there have been no major landmark deals, though transactional activity remains steady at a smaller scale."
However, Dano reports there have been important developments in the financial sector. "Albania has recently licensed its first digital bank, Jet Bank, which is a novelty for the market but also a significant milestone overall. The digital bank is operating within the existing regulatory framework and represents a broader trend toward modernization of financial services in the country."
Finally, focusing on the legislative landscape, Dano says that the EU harmonization process continues to shape a wide range of legal fields. Albania has committed to aligning its legislation with the EU acquis by the end of 2027, which is an ambitious timeline, but it has created steady legislative activity across many sectors. This process touches everything from energy and infrastructure to financial regulation and competition law, keeping lawyers closely involved in ongoing reforms." Still, he does report challenges, too. "The judiciary remains under significant strain due to an ongoing vetting process. Over the past seven years, many judges and prosecutors have been dismissed, which has resulted in substantial case backlogs. Courts at all levels are overloaded, and proceedings are often delayed while cases await reassignment or review." As Dano notes in conclusion, "this continues to be a structural issue affecting dispute resolution timelines."
