The Legal Framework of Foreign Direct Investments in Kosovo

This paper deals with the issue of Kosovo’s Legal Framework in attracting the Foreign Direct Investment and the current developments in this field. This subject matter has been in the focus of Kosovo Government for a long time, thus FDI seems to be an important instrument of Kosovo’s economic growth. Legal Framework covering foreign investment differs depending in each country’s legal system. Many authors throughout the history have mentioned the impact that a good Law might have in setting up a good and a comprehensive legal framework. On the other hand, many others argue that foreign investments are mainly attracted if there is a strong political willingness and a medium legal framework which covers direct investment. We will further analyse the current Legal Framework in the field of foreign investment and discuss a number of cases, applying the comparative method. The paper will give an overview of the definition of foreign investment and its legal and economic impact. We will specifically focus on the Law on FDI, the Law on Strategic Investments and other investment related laws. We will also analyse the Law approximation process with EU Acquis, the Trade Agreements, and finally the entry into force of the SAA