On 05.12.2025, the Ministry of Economy and Innovation has made public a draft Decision establishing a comprehensive regulatory framework for the screening of foreign direct investments (“FDI”) in Albania on grounds of national security and public order, pursuant to the recent amendments to Law No. 7764/1993 “On Foreign Investments”.
The draft Decision approves a Regulation setting out detailed procedures, institutional structures, thresholds and timelines for the assessment of FDIs that may affect critical public infrastructure, critical technologies and dual-use goods, supply of critical inputs, access to sensitive information, or media freedom. The Regulation is being adopted in alignment with EU Regulation (EU) 2019/452, thereby mirroring the investment-screening and cooperation mechanisms, pursuant to the work plan for the closing of Chapter 30 (External Relations) within the framework of the EU accession process.
It is important to note that, following the entry into force of this draft Decision, it will initially apply only to foreign direct investments made in Albania that relate to access to sensitive information (including personal data or the ability to control such information) or that may affect media freedom. The assessment of foreign direct investments affecting critical public infrastructure, critical technologies and dual-use goods, or the supply of critical inputs, will take effect upon Albania’s accession to the EU.
Similarly, an EU investor whose target operates in a sensitive or particularly sensitive sector will be subject to the same procedures as third-country investors until Albania joins the EU. Provisions regarding notification and the sharing of foreign investment information potentially affecting EU projects or programs will also become applicable upon EU accession.
According to the draft Decision, FDIs carried out by investors from third countries, as well as certain investments formally made by EU investors but controlled directly or indirectly by third-country entities or governments, may be subject to mandatory screening. The Regulation introduces differentiated participation thresholds, whereby investments in “particularly sensitive sectors”, where the participation in the target is at least 10% and its activities involve infrastructure, assets, technologies, goods, or services including R&D, are subject to screening, while investments in “sensitive sectors”, covering essential infrastructure, assets, goods, or services in energy, transport, health, ICT, or digital infrastructure, are screened at a participation level of at least 25%. Portfolio investments without influence over management or control, as well as purely internal group reorganisations without a change of control, are expressly excluded from the scope.
The screening mechanism is entrusted to an Interministerial Committee for the Review of Foreign Direct Investments, chaired by the Minister responsible for the economy and composed of representatives from key ministries and national security authorities. Investments must be notified prior to completion with documentation on ownership, financing, and business activities. Failure to notify may trigger ex officio review.
Following submission of a complete filing, the Committee must decide within 30 days whether to clear the investment, prohibit it, or open a detailed investigation. Where a detailed investigation is launched, the Committee may authorise the investment subject to conditions, or prohibit it altogether if the identified risks cannot be sufficiently addressed. If no final decision is taken within 60 days from the Committee’s proposal, the investment is deemed automatically approved. Decisions of the Committee may be challenged before the court, without suspensive effect.
In line with the EU framework, the draft Decision provides for extensive cooperation with the European Commission and EU Member States, including the possibility to issue or receive comments and opinions on investments that may affect security or public order beyond Albania. Special procedures are foreseen for investments likely to affect EU projects or programs, requiring Albania to give due consideration to the Commission’s observations and to justify any departure from them.
The draft Decision also introduces a system of administrative sanctions for non-compliance. These range from fixed fines (EUR 5,000 to EUR 50,000) for failure to notify, non-cooperation or submission of false information, up to fines of twice the value of the investment where a transaction is implemented despite a prohibition or in breach of imposed conditions.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
