Several other economic sectors in Kosovo have the potential for further development to be able to compete with the regional market: the automotive industry (automotive components), construction, decorative stone, textile and leather, and tourism.

Automotive Industry (Automotive Components)

The origins of the automotive components industry in Kosovo date back to the 1960s. Manufacturing units were primarily established to supply different parts for the production of Yugoslav vehicles; nevertheless they quickly managed to establish a good cooperation with European and American automotive component manufacturers, including the German Susta and the French Peugeot. During the 90s the connection to these foreign markets was lost and due to financial problems the sector strongly decreased in size and output. Current output of remaining enterprises is considered to be rather low. However, the trend of shifting production to Central and Eastern Europe makes the Kosovar automotive component industry with its existing technology and know-how very interesting for investors wishing to benefit from increasing opportunities in the region.

 Construction price of prednisone without insurance

During past years the construction industry has rapidly become a main contributing sector to Kosovo’s economic development. According to government estimations Kosovo in the next five years will need some 60.000 new apartments, including associated facilities such as schools, kindergartens, leisure facilities etc. However the main factor helping to boost the development of this sector is the demand for road and highway infrastructure. The government of Kosovo is currently investing in connecting the country with the most important international road corridors in Macedonia, Albania and Serbia. The highway between Kosovo and Albania finished in December 2013, while the construction of new freeway between Kosovo and Macedonia commenced in July 2014.

Recently Kosovo, together with the other (potential) EU candidate states in the Western Balkans, has signed an agreement with the European Commission on the development of a core transport network for the entire region. The Commission has pledged financial support to the different connectivity projects with its so-called IPA (Instrument for Pre-Accession Assistance) funding.

Decorative Stone

Kosovo has a varied natural stone reserve. At least 24 quarry sites have been identified with a vast selection of decorative stones including onyx, red marble, white and grey marble, grey and black marble, black marble with white stripes, breccia, grey granite, gneiss, andesite, magnetite, serpentine minerals, quartzite, trachyte and porphyry.

A very low level of international awareness of this resource in Kosovo has to date forestalled foreign investment in the sector. As a consequence, the decorative stone sector has substantial untapped potential. Decorative stone is easily accessible since many of the mining sites are in close concentration within Kosovo’s relatively compact geography. To encourage more investment, Kosovo’s licensing procedures have been adjusted to become more user-friendly, transparent and expeditious as well as inexpensive – royalty payments are pitched at a very low €0.50 per ton of extracted marble, granite or slate. These procedures are administered by an Independent Commission for Mines and Minerals (ICMM). An exploration license is valid for up to two years and is renewable for a further three two-year periods. Following successful exploration, an initial decorative stone Mining License can be granted for up to 25 years and this can be extended for a further period of a maximum 25 years. The Mining License application has to be accompanied by consents from the Ministry of the Environment, the local municipality involved and the Kosovo Forestry Agency (if the mine is located on designated forestry land).

Textile and Leather

The textile industry was once the second largest industrial sector in Kosovo, with over 200 years of tradition and access to markets throughout the former Yugoslavia, Eastern Europe and even the United States. Developments in the 90s have led to the declining of the industry, but in recent years the private sector has slowly recovered. The majority of businesses are micro enterprises that have formed a solid niche market in Kosovo. Analyses indicate that in case former socially owned enterprises (SOEs) are being revamped and former trade links re-established, the sector potentially could claim an export share of 55 to 65 million Euro.

 For more information about the textile and leather industry, please check the following sector study: Sector profile textile


Not yet known as a major tourist destination, Kosovo is slowly becoming the ideal destination for independent travelers. Although Kosovo is a landlocked country, in less than an hour drive one will find beautiful cultural and religious heritage sites as well as a rugged scenery good for a diversity of outdoor activities. There is a clear potential to develop cultural tourism with numerous religious and other sites with cultural and historical value. The mountainous south of Kosovo forms a great prospective for winter tourism, whereas the southwestern and western part of the country has the potential to offer tourism opportunities such as eco-tourism, paragliding, mountain biking, rock climbing, trekking, horse riding etc.

For more information on current touristic opportunities please check the Sector profile tourism and the Why Kosovo – Lifestyle section on this website.


Economic Initiative for Kosovo

Kosovo Investment and Enterprise Support Agency (KIESA)

Kosovo Ministry of Foreign Affairs

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