In 2023, Serbia’s free zones achieved their best business performance since their inception, according to the monthly Biznis i Finansije. Total investments in these zones reached a record high of €980.7 million, with foreign investments accounting for more than 20% of the country’s overall foreign investments.
The 15 free zones in Serbia collectively reported a surplus in foreign trade operations of €926.5 million, marking a 48% increase compared to 2022. The Free Zone “Pirot” had the largest surplus in this category.
A total of 254 companies operated within these zones last year, including 204 domestic and 50 foreign firms. 44% of these companies were involved in production, while the remaining were in service industries. Compared to 2022, companies in free zones saw an overall turnover increase of over 22%, reaching €7.71 billion. Notably, for the first time, three business zones surpassed €1 billion in total turnover. Regional disparities also began to lessen, as six key zones—including Belgrade, Subotica, Novi Sad, Šabac, Pirot, and Užice—saw nearly equal participation in the total turnover.
However, the “FAS Free Zone” in Kragujevac recorded the weakest results, with a turnover of €142.8 million, a nearly 57% decrease compared to 2022. This was a sharp contrast to 2013 when the zone accounted for nearly 66% of the total turnover in Serbia’s free zones.
In total, 11 business zones reported significant growth, driven by increased investments, new production lines, and expanded capacities. Companies from China and Japan led investments, contributing over 57% of the total, with 10 Chinese firms investing €506.7 million, an increase of nearly 22% compared to 2022. The largest individual investment, valued at €357.7 million, came from the Chinese company Linglong, which opened a tire production facility in the Free Zone “Zrenjanin”.
German companies also significantly boosted their investments, reaching €290.7 million—2.5 times higher than in 2022. Along with the rise in investments, the number of employees in free zones grew by over 2%, bringing the total workforce to 46,105. Seven zones now employ over 4,000 workers, five employ over 5,000, and two employ over 6,000.
In 2023, five new factories opened in the free zones, bringing the total number of companies to 112, representing 21 countries across three continents. German companies remain the largest investors, with 24 companies operating in the zones, followed by Serbia (23 companies) and Italy (19 companies). A notable portion of the new manufacturing companies, 11 from China, are spread across free zones in both the north and south of Serbia.
Production in the free zones reached a record €3.88 billion in 2023, marking a 22% increase compared to the previous year. Over 95% of this production was exported, with the automotive sector being the dominant industry. Some of the largest multinational companies operating in these zones, including “ZF” in the Free Zone “Belgrade” and “Tigar Tires” in the Free Zone “Pirot,” ranked among the top exporters in Serbia for 2023.
This surge in investments, production, and exports reflects the increasing importance of free zones in Serbia’s economy, contributing significantly to the country’s international trade and industrial growth.
