FDI in Slovenia

Please find attached documents with specific information regarding: 

• Foreign Investment Regime 
  • residents and non-residents
  • real-estate investments
  • business iniciatives

• Investment in existing companies
  • mergers & acquisitions
  • takeover procedure

• Concessions and Public-Private Partnership (PPP)

Documents have been prepared by the Centre for International Cooperation and Development.

The first strategic partnerships among domestic and foreign companies can be traced back to the 1970s (Bayer, Semperit, Naue). The first substantial FDI inflows at the end of the 1980s and the beginning of the 1990s were linked to the decision of foreign partners to invest in the equity of their Slovenian partners working under a foreign licence or on the basis of a contract (Renault, Bosch, Siemens, Henkel, ÖMV). In addition, there were the sales of troubled local companies owned by the Development Fund: e.g. Količevo karton, which was first sold to the Saffa Group and later to Mayr-Melnhof; Papirnica Vevče, sold to Brigl & Bergmeister). Those acquisitions were an overture to mass privatisation. The first entries in the area of financial services (Bank Austria, Creditanstalt) also date back to that period.

 

The largest recent FDI inflows are the post-privatisation takeovers (Goodyear, Ljublana Airoirt, Mahle) or classic takeovers (Lek-Novartis, Simobil-Mobilkom, SKB-Societe Generale, NLB-KBC etc).

Inward FDI into Slovenia by sector

(FDI stock as of year-end 2014 EUR 10,130 million)

Major foreign investors in Slovenia

Manufacturing	Aviat Networks, Belimed, BSH Bosch und Siemens Hausgeräte, Brigl&Bergmeister, Carthago, Danfoss, E.G.O. Elektro Geräte, Ecolab, Geberit, GKN Italia, Goodyear Dunlop Tires Europe, Grammer Automotive, Gruppo Bonazzi, Hella, Henkel, Johnson Controls, Knauf Insulation, Lafarge Perlmooser, Meyr Melnhof, Odelo, Palfinger, Poclain Hydraulic, Renault, Safilo Group, Sandoz Group, Siemens, Sogefi, Solvay, Styria, Sun Roller, Unicut, Vogtronics, XAL, Wolford, Yaskawa
Financial services	Hypo-Alpe-Adria Bank, KBC, Raiffeisen Bank, Intesa SanPaolo, Société Générale, UniCredit Bank
Retail	Aldi Süd, E. Leclerc, Eurospin Italia, Harvey Norman, Lidl, MOL, ÖMV, Rutar, Spar
Other services	AC Nielsen, Debitel, Deloitte, DHL, Ernst & Young, GfK, Grieshaber Logistik, KPMG, IBM, ISS Servissystem, McDonald's, Microsoft, Mobilkom, Oracle, PricewaterhouseCoopers, SAP, Schenker, Sodexho Alliance, S&T

Main investing countries into Slovenia

(FDI stock as of year-end 2014 EUR 10,130 million)

FDI inflows in Slovenia, in EUR million, 2005-2014

The low levels of FDI flows in the past indicate that Slovenia was not widely recognised as an attractive location for mobile investment. The main reasons are generally associated with the following:

• Slovenia was a young country starting the transition to a market economy; it had a small domestic market and bordered on an unstable region.
• The privatisation model (decentralised, voucher-based) in the first half of the 1990s left less room for foreign investors than in other countries in the region.
• The domestic services sector (financial services, trade, tourism, infrastructure) was ahead of other countries in the region. The fact that there were some competitive domestic enterprises with a firm foothold in the small domestic market was a clear signal that foreign companies had to make greater efforts than in other countries in the region to win the same market share.

Rise in FDI inflows in the future

It is expected that more foreign investors will look to Slovenia either to make their debut in the region or to strengthen their presence, resulting in FDI inflows from the following sources:

• Post-privatisation acquisitions of already privatised companies. These companies will continue to work on the concentration of ownership. By tying the knot with a strategic partner such companies will have the advantage necessary to maintain their share of the domestic market and to expand into cross-border markets.
• The authorised privatisation funds and other state-run funds will continue to consolidate their portfolios with the aim of increasing the liquidity of their property.
• New entries. Based on the increased demand for information about Slovenia as an inward investment location a rise in the number of greenfield investments is expected.
• Expansion of existing foreign-owned companies. This has been the largest source of new jobs in the manufacturing sector.

FDI stock in Slovenia, in EUR million , 2005-2014