Albania implements mandatory screening for foreign investments

Albania has implemented a new mandatory pre-closing notification mechanism for foreign direct investments in strategic sectors. Following the transition period, the system is now fully operational for all sectors defined by regulation, modeled after the European Union framework for protecting national security and public order.

Under this mechanism, transactions in designated sectors cannot be finalized without prior approval. The regulated sectors include energy, transport, healthcare, telecommunications, banking, media, artificial intelligence, and cybersecurity. For these sensitive sectors, control is typically triggered when a foreign investor seeks a 25 percent stake, with further procedures at 30, 40, 50, or 75 percent.

For sectors deemed exceptionally sensitive—such as defense, critical energy and digital infrastructure, 5G networks, data centers, water supply, and FinTech—the threshold for mandatory review is significantly lower, set at only 10 percent ownership.