The Albanian Parliament has enacted Law No. 56, dated 11.07.2025, amending Law No. 7764/1993 “On Foreign Investments”, to introduce a formal review process for incoming foreign direct investments (“FDI”) in sectors deemed critical to national security and public order.
Under the new amendment to Article 10, any foreign investment “related to or affecting critical public infrastructure, critical technologies, dual‑use goods, supply of critical inputs, access to sensitive information, or media freedom” must now undergo mandatory screening. While the text specifies these sensitive areas, it delegates the detailed definition of thresholds, submission deadlines, processing timelines and procedural safeguards to an upcoming Decision of the Council of Ministers (“DCM”).
This measure is explicitly modelled on EU Regulation (EU) 2019/452, which established, for the first time, an EU-wide framework allowing member states to review inbound investments on grounds of security or public order from non-EU countries. This EU Regulation enables each country to set sector‑specific triggers for review, such as minimum investment amounts or shareholding percentages, and to inform both the European Commission and other member states of planned screenings, as well as allow foreign investors and companies to appeal against screening decisions. The Regulation also provides for the possibility for the European Commission to issue opinions, and for Member States to issue comments, on foreign investments that may affect the strategic interests of other EU countries.
The forthcoming DCM will, or rather should, determine exactly how and when investors must notify the authorities, what maximum and standard review periods will apply once an application is filed, and under which circumstances the government might impose conditions, such as criteria and potential mitigation measures, to address identified risks.
From a commercial perspective, companies planning investments in Albania’s strategic sectors should anticipate a formal pre-investment clearance process that may extend projected timelines by several weeks. Given that the forthcoming DCM will be based on EU Regulation (EU) 2019/452, it is expected that the screening mechanism will reflect the same substantive considerations, placing particular scrutiny not only on the sector of investment, but also on the investor’s background. Businesses should be prepared to submit a detailed application disclosing the investment structure, ultimate beneficial owners, and any elements involving sensitive technology or data.
As Albania advances its European integration agenda, with EU economic‑security standards, the timely publication and clarity of the DCM will be essential in ensuring both national security and continued investment of foreign capital.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
