IMF Study Highlights Stronger Financial Resilience of Companies in Bosnia and Herzegovina, Creating a More Attractive Investment Environment in Sarajevo Canton
IMF Study Highlights Stronger Financial Resilience of Companies in Bosnia and Herzegovina, Creating a More Attractive Investment Environment in Sarajevo Canton
The findings of a new International Monetary Fund (IMF) study on the financial resilience of companies represent an important signal for investors, while infrastructure development, the new Urban Development Plan and growing interest from foreign companies are creating additional opportunities for investment in Sarajevo Canton.
The financial position of companies in Bosnia and Herzegovina has improved significantly over the past decade, with higher profitability, improved liquidity, moderate levels of indebtedness and stronger debt-servicing capacity. According to Adnan Jašarević, Director of the Cantonal Agency for Attracting Investments and Privatization of Sarajevo Canton (KAIP), these trends represent an encouraging signal for potential investors.
Jašarević points to key findings from the IMF’s latest study, which is based on aggregated economic statistics and companies’ balance-sheet data. He notes that such analyses are particularly relevant from an investment-promotion perspective, as they provide international companies with an objective picture of developments in the domestic economy, including Sarajevo Canton.
“For investors, in addition to market potential, financial stability, the resilience of companies and the ability of the economy to respond to changes and challenges are of great importance. It is therefore encouraging that, based on data and an analysis of companies’ financial statements, the IMF has identified significant improvements across several key indicators. These findings should be viewed as an objective assessment of the current state and development of the corporate sector,” Jašarević said.
According to the study, the profitability of non-financial companies has increased over the past decade across different sectors and categories of businesses.
The IMF reports that the median profitability indicator increased from 9% to 29%. Improvements were recorded across all sectors, with particularly strong growth in other services, electricity generation and distribution, and construction.
Jašarević considers the increase in profitability one of the indicators that can contribute to attracting new investment.
“When companies achieve stronger financial results, strengthen their balance sheets and improve their ability to service their obligations, this sends an important signal to potential partners and investors,” Jašarević said.
The study also records a significant improvement in companies’ ability to service their debt. The share of companies exposed to debt-servicing risks declined from approximately one quarter of all companies in 2011 to 9% in 2024.
At the same time, the overall indebtedness of the corporate sector remained relatively stable in relation to GDP, while liquidity indicators improved. The IMF nevertheless cautions that certain sectors may remain vulnerable to adverse economic and financial shocks.
“These findings are important because investors do not look only at the current size of a market. They also consider the broader picture: the financial health of the business sector, access to financing, infrastructure, the regulatory environment, the ability to plan for the long term, and the development priorities of the Government of Sarajevo Canton,” Jašarević said.
Sarajevo Canton: Infrastructure and New Investment Opportunities
Speaking about Sarajevo Canton, Jašarević noted that investment activity is continuing this year, with public investment playing an important role. Such projects create the necessary conditions for business development, improve connectivity and accessibility, and can further increase the interest of domestic and international companies in investing in the Canton.
The anticipated adoption of the new Urban Development Plan of Sarajevo Canton is particularly important, he said, as it is expected to provide greater predictability in spatial development and a clearer framework for identifying future investment opportunities.
“In our discussions with international companies, we are seeing growing interest in business and investment opportunities in Sarajevo Canton. We experienced particularly strong interest last week during the MUSIAD exhibition in Istanbul. Our task is to provide investors with reliable information, present concrete investment opportunities, and help them understand administrative procedures and potential challenges they may encounter,” Jašarević said.
Despite numerous economic and global challenges, Jašarević expects the positive investment trend in Sarajevo Canton to continue throughout the year.
“We are not looking for investment for investment’s sake. We are looking for high-quality investments that create additional value for Sarajevo Canton and Bosnia and Herzegovina. These are projects that, alongside delivering legitimate returns for investors, create new jobs, facilitate the transfer of knowledge and technology, improve productivity, strengthen the competitiveness of domestic companies and contribute to the development of local communities,” Jašarević emphasized.
According to Jašarević, connecting positive indicators from international economic analyses with concrete development projects and a predictable business environment can further strengthen the position of Sarajevo Canton as an attractive investment destination.
Invest in Sarajevo is committed to providing investors with reliable information, identifying concrete investment opportunities and facilitating their engagement with public institutions and the local business community.
A milestone for innovation, investment and the technological development of Sarajevo Canton
Sarajevo Canton is emerging as an increasingly important centre for innovation and advanced technologies in Bosnia and Herzegovina. A strong example is the recent presentation of Bosnia and Herzegovina’s first domestically developed drone by the Center for Advanced Technologies (CNT) Sarajevo, a partner of the Cantonal Agency for Attracting Investments and Privatization (KAIP), with which CNT has signed a Memorandum of Cooperation.
The project represents an important milestone for Sarajevo Canton, demonstrating the potential of local knowledge, engineering and research to generate products with international market potential and create new opportunities for investment.
“This is a very important project for Sarajevo Canton and a significant opportunity to further strengthen our efforts to attract new investments. Innovation and technological advancement are essential for accelerating economic development, increasing competitiveness and attracting higher-quality investors who are looking for knowledge, technology and highly skilled people,” said Adnan Jašarević, Director of KAIP.
At the centre of this achievement is Ensar Mulaosmanović, Director of CNT, who leads an institution increasingly focused on connecting research, innovation, advanced technologies and industry.
Presented at The First Balkan Shield 2026, the CNT-17FW01 attracted significant attention from the media, industry professionals and potential international partners. The aircraft has a 5.4-metre wingspan, a 16 kW engine, a payload capacity of up to 30 kilograms and flight endurance of up to 12 hours.
The project has become one of the most widely reported technology stories in Bosnia and Herzegovina, putting Sarajevo’s technological capabilities into the spotlight.
From innovation to investment
For Sarajevo Canton, the importance of this achievement goes beyond the development of a single aircraft. It demonstrates that advanced technologies can be developed in Sarajevo and connected with international investors, companies and markets.
The project opens opportunities across research and development, electronics, software, sensors, communications, advanced materials, manufacturing and specialised engineering.
The growing international interest is already creating new possibilities. Following Balkan Shield, representatives of the Turkish technology company HAVELSAN held discussions involving CNT and potential future cooperation.
Through its cooperation with CNT, KAIP is positioned to help connect this growing technological potential with investors and international partners, strengthening Sarajevo Canton’s profile as a destination for innovation, technology and high-value investment.
The first Bosnian drone is therefore more than a technological achievement. It is a powerful signal that Sarajevo Canton has the knowledge, people and institutions capable of creating advanced products — and an increasingly attractive environment for investors looking for new opportunities in Bosnia and Herzegovina.
The Government of Sarajevo Canton has adopted the Urban Development Plan for Sarajevo Canton for the period until 2036, marking a major milestone in the long-term planning and sustainable development of the Canton. The Plan has now been submitted to the Sarajevo Canton Assembly for final consideration and adoption.
The new framework provides a strategic foundation for the spatial, economic and infrastructure development of Sarajevo over the next two decades. For investors, it represents an important step towards creating a more predictable, structured and investment-ready urban environment, with clearly defined development priorities and areas for future growth.
According to Faruk Muharemović, Director of the Sarajevo Canton Institute for Development Planning, the Plan is the result of a long-term professional and collaborative process involving the Institute, the Government of Sarajevo Canton, the Planning Council, municipalities and other stakeholders.
New Urban Centres and Investment Opportunities
One of the key elements of the new Urban Development Plan is the decentralisation of Sarajevo’s urban and economic growth.
The Plan envisages the development of new urban sub-centres along the corridors towards Novi Grad, Ilidža and Vogošća, creating opportunities for the expansion of business, residential, commercial and public functions beyond the traditionally concentrated areas of Centar and Stari Grad.
This approach is designed to create a more balanced urban structure while opening new locations and development opportunities for domestic and international investors.
Particular importance is also given to the transformation of former industrial areas. Previously underutilised or brownfield sites are planned for redevelopment into modern business and residential districts, cultural facilities and recreational areas, creating significant potential for new investment projects and urban regeneration.
Infrastructure as a Driver of Investment
The Plan places strong emphasis on improving connectivity and sustainable mobility across the Canton.
Future development will focus on expanding public transport, pedestrian and cycling infrastructure, while the road network will be strengthened through the completion of key transversal and longitudinal routes.
Improved connectivity is expected to increase the accessibility of emerging business and residential zones, reduce congestion and support the efficient movement of people and goods across the Sarajevo metropolitan area.
For investors, this means that infrastructure development and spatial planning are being increasingly aligned with the long-term economic growth of Sarajevo.
Protecting Sarajevo’s Most Valuable Natural Assets
At the same time, the new Plan establishes clearer boundaries for construction land and places greater emphasis on protecting Sarajevo’s green areas, river corridors and key natural zones.
Areas such as Betanija, Hum and Stojčevac are identified within the broader effort to preserve the city’s natural assets, improve environmental quality and prevent uncontrolled urban expansion.
This balance between development and environmental protection is an increasingly important element of Sarajevo’s investment proposition, particularly for projects focused on sustainable urban development, green infrastructure, tourism, residential development and quality-of-life investments.
A Long-Term Framework for Investors
Sarajevo’s previous Urban Development Plan covered the period from 1986 to 2016, making the adoption of a new 20-year framework particularly significant for the Canton.
The new Plan provides a long-term vision for how Sarajevo will grow, where development will be concentrated, how infrastructure will evolve and which areas will be protected from uncontrolled construction.
For investors, this represents more than a spatial planning document. It is a strategic framework for the future development of Sarajevo, helping to identify emerging investment areas, guide urban regeneration and support the creation of a more sustainable and competitive city.
With the new framework extending to 2036, Sarajevo is laying the foundations for planned urban growth, stronger infrastructure, new business districts and a more attractive investment environment.
Sarajevo continues to strengthen its position as one of Southeast Europe’s fastest-growing destinations, with the city’s international airport reporting record-breaking passenger traffic in 2026.
Dino Selimović, Director of Sarajevo International Airport, announced on his social media channels that the airport welcomed 284,301 passengers in July 2026 and handled 2,254 flight operations, making it one of the most successful months in the airport’s history. Earlier in July, Sarajevo International Airport also welcomed its one-millionth passenger of 2026, highlighting the continued growth in passenger demand and the increasing attractiveness of Sarajevo as both a business and tourism destination.
According to Selimović, the positive trend continued into August. On 1 August 2026, Sarajevo International Airport recorded its highest-ever daily passenger traffic, serving 13,199 passengers in a single day—the largest daily figure since the airport was established.
In his post, Selimović emphasized that these achievements reflect growing passenger confidence, successful cooperation with airline partners, and Sarajevo’s expanding international connectivity. He also noted that continuous investments in airport infrastructure, service quality and the expansion of the destination network will further strengthen the airport’s capacity to support future growth.
The strong performance comes during a summer marked by major international events in Sarajevo. Following three sold-out stadium concerts by Dino Merlin, the city is preparing to host the 32nd Sarajevo Film Festival, one of Southeast Europe’s leading cultural events, which is expected to attract thousands of international visitors.
For investors, these figures represent much more than record passenger traffic. They demonstrate Sarajevo’s increasing accessibility, stronger integration into international transport networks, and its growing potential as a regional hub for tourism, business, conferences and foreign investment.
The Canton Sarajevo Agency for Attracting Investments and Privatization (KAIP), through its Invest in Sarajevo initiative, welcomes these positive developments, recognizing improved air connectivity as one of the key drivers of economic growth, tourism development and foreign direct investment in the Sarajevo Canton.
A 130-hectare investment destination with direct access to Corridor Vc is expected to become the country’s largest integrated business and industrial zone.
The Sarajevo Canton Government is planning the development of the largest business zone in Bosnia and Herzegovina, strategically located in Doglodi, between the Corridor Vc motorway and the Miljacka River. Covering approximately 130 hectares—an area equivalent to nearly 200 football pitches—the project is designed to meet the growing demand for large-scale investment locations and modern industrial facilities.
The future business zone will be divided into eight development lots, allowing investors to choose locations according to their operational needs. The lots range in size from approximately 68,800 square metres to 244,561 square metres, while a total of 470,000 square metres has been designated specifically for industrial development.
According to a Feasibility Study on Industrial and Business Zones in Sarajevo Canton, prepared by the Sarajevo Institute of Economics, the total investment required for the development of the zone is estimated at BAM 170 million (approximately EUR 87 million).
The Sarajevo Canton Government plans to finance the construction of the core infrastructure, including roads, utilities and a dedicated connection to the Corridor Vc motorway, significantly enhancing accessibility for future investors.
One of the project’s major competitive advantages is that a substantial portion of the necessary municipal infrastructure already exists, making Doglodi the most favourable location among several sites evaluated during the feasibility study.
Once fully operational, the business zone is expected to generate more than BAM 1 billion in annual business activity and create between 5,000 and 9,000 new jobs, making it one of the most significant economic development projects in the country.
The initiative responds to increasing market demand. Sarajevo Canton currently has 38 business zones, most of which are already largely occupied, relatively small—with an average size of around 20 hectares—and geographically fragmented. Large international investors increasingly require larger, integrated development sites capable of accommodating complex industrial and logistics operations.
During the site selection process, several locations—including Krivoglavci, Kute, Kovačevac, Tarčin and Duranovići—were assessed. Following detailed analysis, Doglodi emerged as the optimal location due to its strategic position, transport connectivity and existing infrastructure.
The principal challenge before construction can begin is resolving the legal status of part of the land, which remains under state ownership. Addressing state property issues is a prerequisite for the implementation of the project.
The business zone has already been incorporated into the Sarajevo Canton Urban Development Plan 2016–2036, with final adoption of the planning document by the Sarajevo Canton Assembly expected by the end of this year.
Upon completion, the Doglodi Business Zone is expected to become one of the most attractive investment destinations in Southeast Europe, offering investors large-scale development opportunities in a strategically positioned, infrastructure-ready business environment.Sarajevo Canton Plans Bosnia and Herzegovina’s Largest Business Zone
A 130-hectare investment destination with direct access to Corridor Vc is expected to become the country’s largest integrated business and industrial zone.
The Sarajevo Canton Government is planning the development of the largest business zone in Bosnia and Herzegovina, strategically located in Doglodi, between the Corridor Vc motorway and the Miljacka River. Covering approximately 130 hectares—an area equivalent to nearly 200 football pitches—the project is designed to meet the growing demand for large-scale investment locations and modern industrial facilities.
The future business zone will be divided into eight development lots, allowing investors to choose locations according to their operational needs. The lots range in size from approximately 68,800 square metres to 244,561 square metres, while a total of 470,000 square metres has been designated specifically for industrial development.
According to a Feasibility Study on Industrial and Business Zones in Sarajevo Canton, prepared by the Sarajevo Institute of Economics, the total investment required for the development of the zone is estimated at BAM 170 million (approximately EUR 87 million).
The Sarajevo Canton Government plans to finance the construction of the core infrastructure, including roads, utilities and a dedicated connection to the Corridor Vc motorway, significantly enhancing accessibility for future investors.
One of the project’s major competitive advantages is that a substantial portion of the necessary municipal infrastructure already exists, making Doglodi the most favourable location among several sites evaluated during the feasibility study.
Once fully operational, the business zone is expected to generate more than BAM 1 billion in annual business activity and create between 5,000 and 9,000 new jobs, making it one of the most significant economic development projects in the country.
The initiative responds to increasing market demand. Sarajevo Canton currently has 38 business zones, most of which are already largely occupied, relatively small—with an average size of around 20 hectares—and geographically fragmented. Large international investors increasingly require larger, integrated development sites capable of accommodating complex industrial and logistics operations.
During the site selection process, several locations—including Krivoglavci, Kute, Kovačevac, Tarčin and Duranovići—were assessed. Following detailed analysis, Doglodi emerged as the optimal location due to its strategic position, transport connectivity and existing infrastructure.
The principal challenge before construction can begin is resolving the legal status of part of the land, which remains under state ownership. Addressing state property issues is a prerequisite for the implementation of the project.
The business zone has already been incorporated into the Sarajevo Canton Urban Development Plan 2016–2036, with final adoption of the planning document by the Sarajevo Canton Assembly expected by the end of this year.
Upon completion, the Doglodi Business Zone is expected to become one of the most attractive investment destinations in Southeast Europe, offering investors large-scale development opportunities in a strategically positioned, infrastructure-ready business environment.
The Ministry of Economy of Canton Sarajevo has announced a new public call under the 2026 Small Business Development Program, introducing a dedicated incentive scheme aimed at encouraging direct foreign investment and supporting the establishment of companies founded by international investors in Canton Sarajevo.
A total of 300,000 BAM has been allocated through the 2026 Budget of Canton Sarajevo to support new investment projects that will contribute to economic growth, innovation, and job creation across the Canton.
The program is designed to position Sarajevo as one of the region’s most attractive and competitive investment destinations by offering concrete financial support to foreign-backed businesses ready to establish and expand operations in Bosnia and Herzegovina’s economic and administrative center.
Eligible applicants include newly established limited liability companies registered in Canton Sarajevo, as well as small business entities that meet the criteria defined by the public call. Applicants are required to employ at least two full-time staff members and submit a comprehensive business development and investment plan.
Through this initiative, investors may receive reimbursement for a wide range of direct and indirect investment costs, including the purchase of machinery, equipment, tools and technology, implementation of information systems and digital platforms, as well as certification and standardization expenses necessary for international market competitiveness.
The maximum financial incentive available per beneficiary amounts to 100,000 BAM, while applicants are required to secure a minimum co-financing share of 40% of the total investment value.
Applications will be evaluated based on the quality and sustainability of the business plan, market potential, level of innovation, export capacity, job creation opportunities, and the inclusion of local suppliers and value chains.
By launching this program, the Ministry of Economy of Canton Sarajevo continues to strengthen Sarajevo’s investment ecosystem and improve the overall business environment for both domestic and international investors.
With its strategic geographic position, highly skilled workforce, competitive operating costs, and growing digital and industrial sectors, Canton Sarajevo is increasingly becoming a gateway for regional business expansion and long-term investment opportunities in Southeast Europe.
Interested investors and business entities are encouraged to take advantage of this opportunity and submit their applications within the deadline.
The public call remains open for 30 days from the date of publication in the Official Gazette of Canton Sarajevo, while the full application guidelines and documentation are available on the official website of the Ministry of Economy of Canton Sarajevo.
Vienna remains a strong European center, while Sarajevo is becoming a recognized regional hub capable of attracting, retaining, and developing investments, particularly in the fields of healthcare, innovation, and new technologies, it was highlighted at today’s meeting in Sarajevo attended by senior officials from the City of Vienna, the Cantonal Agency for Attracting Investments and Privatization (KAIP), as well as experts and investors.
Adnan Jašarević, Director of KAIP, Barbara Novak, Deputy Mayor of Vienna, and Dominic Weiss, Director of the Vienna Business Agency, were among the participants in a very substantive discussion on cooperation between the two cities, with a particular focus on investments in the healthcare sector, where there is notable interest in Sarajevo Canton.
The meeting opened the door to more concrete connections between Austrian companies and investment opportunities in Sarajevo Canton, with the involvement of the Austrian Chamber of Commerce in Bosnia and Herzegovina, Advantage Austria.
“In 2024, more than 60 million BAM were invested in the healthcare and social protection sector in Sarajevo Canton, which is twice as much as in previous years. At this moment, there is no better place in Europe to invest in this field than Bosnia and Herzegovina, and I particularly refer to Sarajevo Canton, which is increasingly gaining recognition. Business conditions are becoming more favorable, investments are secure, the regulatory framework is predictable, and both the tax policy and incentive policy are highly attractive. We are extremely encouraged by the interest coming from Vienna, which has been further strengthened through institutional cooperation established last year through the signing of a memorandum with the Vienna Business Agency,” said Jašarević.
Deputy Mayor of Vienna Barbara Novak, who led a large delegation from the Austrian capital, emphasized that Vienna has a dense and internationally well-connected startup ecosystem in the fields of MedTech and Life Sciences. She also expressed a particular interest in strengthening cooperation with Sarajevo. During the delegation’s visit, working meetings were organized to explore models for more concrete measures that could accelerate the realization of investments.
“In Vienna we are pursuing a joint strategy in the life sciences and pharmaceutical sectors to stay ahead, strengthen our startup ecosystem, and create sustainable jobs. We also want to further advance opportunities for startups from Sarajevo,” Novak emphasized.
Dominic Weiss, Director of the Vienna Business Agency, highlighted that today’s event represents one of the very successful outcomes of the cooperation between the Vienna Business Agency and KAIP, formalized last year, adding that within the agency’s support programs additional assistance will be provided to the best startup companies from Sarajevo Canton.
The Director of the Cantonal Agency for Attracting Investments and Privatization Adnan Jašarević met with H.E. María Molina Álvarez de Toledo, Ambassador of the Kingdom of Spain to Bosnia and Herzegovina.
The meeting was also attended by Jašarević’s associates, and the discussions focused on opportunities to enhance cooperation in attracting investments and strengthening economic development. Jašarević presented the activities of the Agency, highlighting the positive business environment and investment potential of Sarajevo Canton, as well as opportunities for investors from Spain.
Particular attention was given to very concrete contacts with Spanish companies that have expressed interest in investing in various economic sectors, including tourism and renewable energy.
During the very pleasant and constructive discussion, other aspects of cooperation were also considered. Jašarević emphasized the importance of the Kingdom of Spain as a partner and expressed gratitude for the support and assistance that Spain has provided to Sarajevo and Bosnia and Herzegovina.
Sarajevo, BiH – 90% of FIC members recommend Bosnia and Herzegovina as an investment destination, while 68% plan new investments in the coming years, according to the Business Barometer for 2025!
Foreign investments remain one of the most important drivers of international economic cooperation and host country development. They enable domestic companies to connect with foreign partners, creating opportunities for technology transfer, skills development, capacity building, and market expansion. Such projects directly increase the efficiency and competitiveness of local enterprises, generate new jobs, and stimulate overall economic growth, especially in transition economies, including Bosnia and Herzegovina.
Bosnia and Herzegovina and Kanton Sarajevo recognizes the strategic importance of foreign investments and continues to work on improving the business environment. However, its complex administrative structure and fragmented regulatory system still present challenges for investors. For this reason, the members of the Foreign Investors Council in BiH (FIC) have prepared the fourth edition of the Business Barometer, aiming to provide relevant information and recommendations to authorities to create more favorable investment conditions and enhance the position of existing investors.
Analysis of recent years shows that, despite challenges, investors in BiH demonstrate a high degree of resilience and adaptability. Many companies have implemented new projects, expanded production capacities, and improved internal processes, confirming the country’s potential for long-term investment. These positive examples highlight that BiH possesses resources, knowledge, and strategic advantages that, if further utilized, can significantly enhance the investment climate.
Although 38% of FIC members express moderate dissatisfaction with the business environment—the high level of market confidence is evident from the fact that 90% of FIC members recommend BiH as an investment destination, while 68% plan new investments in the coming years.
Employment plans also indicate a positive trend. More than half of FIC members (63%) intend to increase the number of employees over the next three years. The highest demand is for highly educated professionals, particularly in economic and technical fields, while skilled workers in vocational and craft professions are also in significant demand. This emphasis on human resources highlights the importance of continuously aligning the education system with labor market needs.
Geographic proximity to the European Union, availability of qualified labor, and low corporate profit tax and VAT rates are identified as key advantages of BiH. Leveraging these factors provides a strong basis for attracting new investments and strengthening the country’s economic stability.
The comprehensive insights presented in this report provide a clear picture of the current state of foreign investments, identify advantages and challenges, and offer guidance for designing policies that improve the business climate, strengthen investors’ positions, and contribute to the long-term economic growth of Bosnia and Herzegovina.
The full Business Barometer 2025 is now available for investors to review the complete research and findings.
Are you a Bosnian startup in the field of health tech? If yes, this might be a great opportunity to experience #ViennaUp, the startup festival!
Get to know founders, investors, and innovators, and discover what startup hub Vienna has to offer from May 18-22, 2026 in the beautiful Austrian capital . 🚀
Shortlisted start-ups will have the chance to pitch in front of an expert jury on April 20 in Sarajevo for the chance to receive a €500 travel grant to participate at ViennaUP.
🎤 Pitch. Connect. Go international.
Selected startups will:
✅ Pitch in front of an expert jury in Sarajevo on 20th of April 2026
✅ Get the chance to win a €500 travel grant
✅ Join ViennaUP in May and experience Vienna as a leading European startup hub firsthand
Who can apply?
✔️ mature startups from Bosnia and Herzegovina in the healthcare, medtech, and life science sector
Initiated by Vienna Business Agency, this call gives selected startups the opportunity to take part in ViennaUP and connect with Europe’s healthcare innovation ecosystem.
Learn more about ViennaUP here: ViennaUP 2026 | The Startup Festival. Programme goes live on February 20; sign up for the newsletter to stay informed!
