Assembly of Albania Introduces the Concept of Investment Screening in Amendment to Foreign Investment Law
By Elvis Zerva
On July 3, 2025, the Assembly of Albania adopted an amendment to Law No. 7764, dated November 2, 1993, "On Foreign Investments", introducing, for the first time, a mandatory screening regime for foreign direct investments (FDIs). The amendment (Law 56/2025) is now published in the Official Gazzette no. 124 date 11.07.2025.
The amendment authorizes the Government of Albania to establish rules and procedures for screening FDIs that relate to or may affect critical public infrastructure, critical technologies and dual-use goods, the supply of critical inputs, access to sensitive information, or media freedom as defined in Regulation (EU) 2019/452 of the European Parliament and of the Council of the European Union
However, the amendment does not specify the sectors, criteria, or conditions under which FDIs will be examined, nor does it define the institutional framework for administering the investment screening mechanism. These elements are expected to be detailed in a forthcoming decision by the Council of Ministers. Notably, the amendment does not impose any limitations on the Council of Ministers' discretion in determining the model or modalities of the investment screening mechanism to be adopted, nor any deadline for the approval of the rules and procedures.
Until now, Albania had not implemented any formal administrative procedure for reviewing, assessing, or screening FDIs. Such assessments have been conducted on an ad hoc basis by existing public institutions, without a unified legal framework, procedures, or institutional governance.
The adoption of this amendment is regarded as a significant step toward protecting national security and strategic interests while maintaining an open and attractive investment climate. However, this amendment was not preceded by any prior official notification for public consultation with stakeholders and/or group of interests. Instead, the latter had been expecting the new draft-law on foreign investment officially scheduled for approval by the end of 2026, and which is supposed to substitute and merge the current Law No. 7764, dated November 2, 1993, "On Foreign Investments," and the Law No. 55/2015 “On Strategic Investments”.
It coincides with Albania’s accelerated progress in its EU accession negotiations, having opened nearly all negotiation chapters of the EU acquis. The government anticipates the closure of all chapters by the end of 2027. In fact, the official justification for this legislative reform is to align with Regulation (EU) 2019/452, as part of Albania’s efforts to close Chapter 30 – External Relations – of the acquis.
With this legal development, Albania becomes the first country in the Western Balkans to introduce an investment screening mechanism in accordance with the provisions of Regulation (EU) 2019/452. The country is now poised to establish a comprehensive and structured system of rules, procedures, and institutional governance for the screening of foreign investments in the near future.
