On the “Financial Times” list, Leskovac is the winner in the group of smaller European cities. The “fDi” magazine, a publication of the British Financial Times, in the edition of the “European Cities and Regions of the Future” list for the year 2024, ranked Belgrade at a high seventh place in the category of large European cities in terms of human capital, while Leskovac took the first place as the most attractive small city for investors.
It is about a list that ranks the best investment locations in Europe, and Serbia stands out with several cities and regions that have made it among the best locations for investment.
This year, once again, Belgrade is at the top in its category, and Leskovac is the winner in the category of smaller cities.
In addition to Belgrade and Leskovac, the prestigious British business magazine ranked Kragujevac in the category of medium-sized cities in eighth place for cost efficiency. Šimanovci, Zrenjanin, and Subotica also appeared on the Financial Times list.
Why is Belgrade an interesting city for investments
When it comes to Belgrade, according to fDi, in the Human Capital and Lifestyle category, the capital of Serbia has secured the seventh place, standing out for its rich cultural scene, high standard of living, and diverse educational opportunities. This makes it attractive for foreign professionals and young talents.
Primarily, the IT industry and the service sector are highlighted, with the results confirmed by the significant number of foreigners who have come to Belgrade to live and work in the past few years.
In the Cost Efficiency category, Belgrade secured the ninth place, offering competitive costs of living and doing business compared to other European cities, making it attractive for companies seeking cost-effective operations.
Belgrade took the eighth place in the Business Environment category, as it is known for its favorable business environment, simple administrative procedures, and support for foreign investors.
As stated in the explanation, the Government of Serbia has made significant efforts in recent years to simplify procedures for the operations of both large and small businesses, as well as entrepreneurs. This has enabled Belgrade to be on this list ahead of cities like Cologne and Glasgow.
The reputable business magazine highlights the significant advantages of Belgrade, such as the quality of the workforce, with a large number of highly educated individuals who have been working in global companies for several years.
Belgrade has managed to build a reputation as an excellent destination for investors seeking talented and specialized engineers.
Regarding the quality of infrastructure, Belgrade has well-developed infrastructure, especially in the fields of transportation and telecommunications, which facilitates both business operations and the daily lives of its citizens.
It also boasts an exceptional geographical position, as mentioned, being at the crossroads of routes between the East and West. This makes it an ideal location for companies looking to operate in markets from both regions.
Significant investors operating in Serbia
The British magazine mentions significant investors present in Serbia, such as Microsoft, NCR, IBM, Rivian, Luxoft, as well as substantial investments in real estate and development projects like Belgrade Waterfront.
Leskovac, in the category of micro-cities concerning cost efficiency, has even secured the first place.
As stated by FT, Leskovac stands out as the most cost-efficient micro European city of the future, making it exceptionally attractive to investors seeking cost-effective business operations.
Leskovac is renowned for its textile industry, boasting well-developed infrastructure in that sector, which attracts investors from the textile industry.
With the development of infrastructure and additional investments, it is expected that Leskovac will attract more investors.
Financial Times notes that the city has a tradition in production and possesses a trained and qualified workforce ready for employment.
Located in the southern part of Serbia, Leskovac has good transportation connections with other parts of the country and the region, facilitating product distribution and market access. The major investors operating in the city include Yura, Delphi/Aptiv Contract Services, Fush, Falke, and RIM Group.
Kragujevac is ranked eighth in the category of medium-sized cities for cost efficiency.
The city has favorable costs of living and doing business, which is attractive to investors seeking cost-effective operations. It also boasts a rich industrial tradition and developed industrial infrastructure, making it appealing for investments in manufacturing and the automotive industry.
As mentioned, Kragujevac has highly educated workers due to the presence of the university in the city, which is crucial for companies seeking a qualified workforce.
Soon, the construction of the Innovation District will commence in Kragujevac, which, along with the Data Center, will contribute to the development of significant IT and innovation companies in the city.
Situated in the central part of Serbia, the city has good transportation connections with other parts of the country, facilitating product distribution and market access. The most significant investors in Kragujevac include Stelliantis, Yanfeng, Wacker Neuson, Shenchi Automotive, Puratos, MIND Grupa, and Oracle.
In the category of micro-cities for cost efficiency, Šimanovci secured the fourth place, Zrenjanin the fifth, and Subotica the sixth place.
In terms of cost efficiency, all three places stand out for offering competitive conditions for business and investments. As stated, they have developed industrial infrastructure and tradition, making them attractive for investments in various sectors.
Favorable geographical position of cities
When it comes to location, Šimanovci, Zrenjanin, and Subotica have favorable geographical positions with good transportation connections, facilitating market access and product distribution.
All three local governments provide support and incentives for investors, contributing to their attractiveness as investment destinations.
They have a trained workforce, which is important for companies seeking qualified employees, and the most significant investors include Pećinci – Robert Bosch, Coficab, Chemical Agrosava, Ivković Investment Group, CTP Sigma, Dr. Oetker; in Zrenjanin – Linglong Tire, Avalon, Essex Europe, GLM, Novares; in Subotica – Continental, Boysen, Don Don, Pionir, and Andex.
When it comes to other countries, several cities from Central and Eastern Europe stood out in the “European Cities and Regions of the Future” list: Frankfurt in Germany, Wroclaw in Poland, and the city of Luxembourg.
These cities have stood out as leaders in their respective categories: large cities, medium-sized, and small cities.
London has reaffirmed its leadership in the category of large cities, while Barcelona is highlighted as a top destination for foreign direct investments.
Financial Times notes that in Europe, in 2023, the investment climate was challenging, with a decline in investments compared to the previous year, both in the number of projects and capital investments.
Overall, Europe’s share in global foreign direct investments decreased in 2023, accounting for approximately 29% of total projects, compared to around 36% in 2022.
Based on performance in five subcategories – economic potential, business friendliness, connectivity, human capital and lifestyle, as well as cost efficiency, the most promising investment destinations in Europe were ranked.
A total of 330 European cities were assessed, categorized by population size into five groups – large, medium-sized, small, and micro cities.
Additionally, 38 local partner companies in the United Kingdom were also assessed.
Furthermore, for the “FDI Strategy” category, questionnaires were collected from European investment promotion agencies.
A jury composed of three experts in investment promotion and economic development – Carolina Arriagada Peters, Sean Duggan, Judith O’Doherty, along with fDi editor Jacopo Dettoni and journalist Seth O’Farrell, reviewed 117 applications from cities and regions across Europe.
It is the only qualitative category on the list that, otherwise based on data, influences the overall results.
Prime Minister on the project ‘European Cities and Regions of the Future’
Prime Minister Ana Brnabić stated today that on the fDi magazine’s list, a publication of the British Financial Times, “European Cities and Regions of the Future” for the year 2024, Belgrade found itself at high positions, and for the first time, Leskovac, Kragujevac, Šimanovci, Zrenjanin, and Subotica as well. She emphasized that this is a significant recognition for Serbia and will undoubtedly help us continue setting records in attracting foreign direct investments to our country.
The Financial Times ranked Belgrade at a high seventh place in the category of large European cities concerning human capital, while Leskovac took the first place as the most attractive micro-city for investors in terms of cost efficiency.
This list ranks the best investment locations in Europe, and Prime Minister Brnabić, in a statement to Tanjug, congratulated all cities and municipalities that made it to the list of the prestigious British magazine. She emphasized that this success for Serbia will be a significant boost, not only for foreign but also for domestic investments.
“First of all, congratulations to everyone. This is a big thing, a significant recognition, and it will undoubtedly help us continue bringing record-breaking foreign investments to Serbia, as well as a record number of investments. However, this is also important for domestic investors. Because when you measure that a municipality or a city in Serbia is favorable or one of the most favorable in Europe in terms of business conditions for investment, it means that domestic investors, our micro, small, and medium enterprises, family businesses, have good conditions for investment, and thereby they become more competitive,” emphasized the Prime Minister.
She points out that Leskovac won in terms of cost efficiency, which means that domestic investors in Leskovac have the opportunity to be much more competitive when competing with anyone else in Europe.
“So, it’s a big thing for domestic investors, but also a big thing for Serbia as an investment destination, which is especially important in these times when we see that Europe as a continent is declining in competitiveness,” stated Brnabić.
She adds that it is concerning to see in the Financial Times report that the global share of investments on the European continent has decreased from 36 percent in 2022 to 29 percent in 2023.
“So, Serbia did well when it started to look more broadly at where else we can attract investments, and we are increasingly getting investments from Asia. Our relationship with Japan, Korea, and the People’s Republic of China is extremely important. So, our strategy has been good, but really congratulations to all those cities and municipalities that made it to the top 10, to the first 10, especially to Leskovac, which won in its category of micro-cities for cost competitiveness,” said the Prime Minister.
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