Albania adopts new FDI screening requirement

During July 2025 the Albanian Parliament passed law no. 56/2025 for an amendment to the Foreign Investments Law (no. 7764/1993).

Based on this amendment, foreign direct investments related to or affecting critical public infrastructure, critical technology and dual-use goods, the supply of critical inputs, access to sensitive information or freedom of the media, are subject to a governmental screening.

The amending law provides that these areas will be identified in accordance with the definitions of the Regulation (EU) 2019/452.

Up to now, the Albania had quite liberal approach regarding foreign direct investments, and this is the first instance of introduction of a screening mechanism since the adoption of the Foreign Investments Law in 1993.

The amending law provides that the screening mechanism for FDI in these areas shall be performed pursuant to the rules and procedures adopted by decision of the Council of Ministers.

To date, no rules and procedures have been adopted by the Council of Ministers, and there is lack of clarity for a number of matters, such as the agency that will be competent for performing the screening, the timelines for the screening process as well as what conditions foreign investors will be required to meet in order to pass the assessment.

Further, once adopted, the consistency of the screening mechanism must be reviewed vis-à-vis the conditions of bilateral and multilateral investment treaties that Albania has entered into.