Albania investment climate faces corruption and judicial challenges

The U.S. Department of State has released its 2026 Investment Climate Statement for Albania, presenting a dual perspective on the nation's economic landscape. On one hand, Albania is recognized as a high-middle-income economy with steady growth, driven largely by tourism and real estate. The report notes progress toward European Union membership and record levels of foreign direct investment, supported by a liquid banking sector.

On the other hand, the report highlights significant institutional and structural obstacles that deter investors. Key concerns include widespread corruption within the public sector, the judiciary, and the media, as well as issues with money laundering and the influence of organized crime. Investors have reported risks of extortion and pressure from administrative bodies and criminal groups.

Additional challenges identified include weak contract enforcement, property rights disputes, and a lack of transparency in public procurement. The report specifically critiques the use of Public-Private Partnerships (PPPs), noting they have sometimes limited competition and lacked sufficient technical expertise. Furthermore, the massive emigration of the workforce has created severe labor shortages, impacting local businesses. While specialized anti-corruption structures like SPAK and BKH have shown progress, the report emphasizes that addressing judicial delays and the culture of impunity remains essential for a more competitive global economic standing.