As Bosnia and Herzegovina advances EU-alignment and energy transition priorities, mandates have broadened across compliance, projects, and cross-border deals. Maric & Co Partner Bojana Bosnjak-London and Sijercic & Partners Senior Partner Nihad Sijercic discuss where the work is coming from, who’s investing, what’s slowing things down, and how the outlook is shaping up.
EU Rules & Green Power Drive Mandates
Regulatory alignment and renewables topped the agenda, with overall market activity described as one of the busiest in years.
“From our on-the-ground perspective, legal mandates in Bosnia and Herzegovina during 2024-2025 were mostly driven by the country’s EU candidate status and the resulting momentum toward regulatory alignment,” Sijercic begins. “Legislative developments, particularly in areas such as anti-money laundering, data protection, and financial regulation, significantly increased demand for compliance and advisory services.”
Bosnjak-London points to record activity and broad sector drivers. “From our perspective, 2024-2025 has been marked by record levels of activity in Bosnia and Herzegovina. The drivers have been quite varied, ranging from corporate restructurings and market entry transactions to regulatory-driven mandates in energy, infrastructure, and financial services,” she says. “Investor interest has been particularly strong across multiple sectors, reflecting both Bosnia’s strategic position in the region and a renewed appetite for opportunities in emerging markets.”
Hottest Sectors
Energy and infrastructure led the pack, with steady flows across finance, employment, and cross-border corporate work.
“Throughout 2024 and 2025, the legal market in Bosnia and Herzegovina remained consistently active across core practice areas, such as employment law, banking and finance, and cross-border transactions, particularly those involving regional corporate restructurings, M&A, and cross-border capital flows,” Sijercic outlines. Among the sector-specific developments, the energy and infrastructure space stood out as a particularly active sector, largely due to a growing wave of investment in renewable energy, especially solar and wind projects. “This generated mandates across project finance, corporate structuring, regulatory compliance, drafting of EPC and O&M contracts, land and property rights resolution, and long-term power purchase agreements. At the same time, Bosnia and Herzegovina’s EU candidate status triggered an uptick in compliance-driven mandates, particularly in anti-money laundering and data protection, where firms supported clients not only in understanding new legislation but also in implementing policies, procedures, and audits aligned with EU standards.”
Additionally, Bosnjak-London underscores the breadth of active sectors alongside deep regulatory demands. “The most dynamic sectors over the past year have undoubtedly been energy and infrastructure, with a particularly strong focus on renewables. These projects have required extensive regulatory and permitting work, alongside complex project development mandates.” Moreover, she highlights real estate and tourism as also having been very active, “especially with cross-border investors looking to capitalize on Bosnia’s growth potential. At the same time, financial services and IT/TMT have generated a steady flow of transactional and regulatory work. What stands out is that across all these sectors, clients are seeking support not only on deals and financings, but also on navigating an increasingly sophisticated regulatory landscape, making multi-disciplinary advice essential.”
She further notes sectoral revivals tied to geopolitics and industrial legacy. “What stands out in 2024-2025 is the revival of industries tied to the geopolitical context. The defense sector has been expanding, and, perhaps most surprisingly, the metallurgical and mining industries are re-emerging.” According to Bosnjak-London, “Bosnia and Herzegovina, historically a metallurgical hub of former Yugoslavia, is rich in iron ore, bauxite, lead, zinc, copper, and more. Recent acquisitions and restructurings highlighted both the scale of Bosnia’s mineral wealth and the appetite of international players. Alongside major actors such as ArcelorMittal Zenica and Aluminij Industries from Mostar, these developments are generating significant transactional, regulatory, and project-related mandates.”
Furthermore, Bosnjak-London also stresses that tourism and connectivity feature prominently in the current mandate mix. “Tourism is growing at an incredible pace. The airport in Sarajevo is expanding and becoming one of the busiest in the region. It has become a hub for major low-budget companies like Wizz Air and Ryanair that are expanding their network, and competitors are emerging.”
Investor Mix
“Investor interest in Bosnia and Herzegovina throughout 2024-2025 has predominantly originated from EU-based entities, reflecting the country’s ongoing integration with European markets,” Sijercic says. “The United States has also maintained a steady presence, with both private capital and institutional support playing a role over several years in advancing investment and governance-related initiatives. At the same time, Chinese investors have shown growing interest, signaling a trend toward broader diversification in the sources of foreign investment.”
Moreover, he indicates that mergers and acquisitions remain the “principal entry route, typically involving established local companies seeking to attract foreign capital or expand their reach beyond domestic borders. These transactions often required comprehensive legal support in due diligence, deal structuring, negotiation, and post-closing integration. In addition to M&A, greenfield investments in energy and infrastructure projects became more frequent, requiring extensive permitting, licensing, and regulatory navigation, as well as advice on optimal investment vehicles and joint venture arrangements.”
Friction Points and Signs of Improvement
Administrative fragmentation and uneven practice remain core challenges, though EU-driven reforms and digitization are helping. “Investors frequently encounter slow, inconsistent permitting and approval processes, compounded by significant variation across entities and cantons,” Sijercic says. “Complex land and property rights issues further exacerbate delays and legal uncertainties. Moreover, limited transparency and predictability, stemming from overlapping competencies between state, entity, and local authorities, result in uneven application of laws and regulations, undermining investor confidence and complicating strategic planning.”
Still, despite these challenges, Sijercic reports that “gradual improvements have been noted in the harmonization of legislation with EU standards, digitalization of certain registries, and targeted reforms in areas such as renewable energy incentives and AML frameworks, which together have helped mitigate some of the traditional obstacles investors face.”
Bosnjak-London echoes the regulatory complexity and emphasizes that local guidance can bridge gaps. “Most of the friction points in the economy of Bosnia and Herzegovina emerge from its complex political structure established with the Dayton Peace Agreement. Differing regulations, an abundance of regulatory bodies across entities, and cantonal lines often stifle the local economy and entrepreneurship of foreign investors. This still remains a friction point and a major talking point when discussing investments in Bosnia and Herzegovina. However, with proper, domestic legal help, the issue is easily surmounted.”
Forward Momentum Holding
Momentum is expected to hold, with progress hinging on continued reform delivery and governance stability. “The focus on energy transition will remain the cornerstone of legal and investment activity in Bosnia and Herzegovina for the foreseeable future,” Sijercic says. “This momentum is driven both by domestic priorities and alignment with EU green policies, which continue to create significant opportunities in renewables and related infrastructure. Investor interest is expected to remain resilient, with the EU continuing to be the primary source of capital. However, the pace of growth will largely depend on the government’s capacity to implement meaningful reforms, particularly those aimed at enhancing legal certainty, reducing bureaucratic obstacles, and fostering transparent and stable governance.”
According to Sijercic, while challenges persist, the ongoing trend toward modernization, compliance with EU acquis, and deeper integration into European markets provides a cautiously optimistic outlook for Bosnia and Herzegovina’s business environment in the near to mid-term.”
Finally, Bosnjak-London expects these patterns to endure as fundamentals deepen. “These trends are not short-lived; they are poised to continue shaping Bosnia and Herzegovina’s market in the years ahead. With its natural resources, strategic location, and increasingly diverse sectors attracting investment, the outlook remains very strong.”
This article was originally published in Issue 12.8 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
