Serbia is seeking deeper involvement from Czech industrial and infrastructure companies as the country prepares for Expo 2027 and a long-term capital investment programme, while new development-bank financing channels are opening additional funding opportunities for domestic businesses.
A Serbian-Czech business forum held in Belgrade on 23 July brought together around 50 companies from sectors including metals, electrical engineering, defence, aerospace, automotive, chemicals, rubber, construction, transport, telecommunications, information technology, food processing and banking.
The event included major Serbian participants such as Elektroprivreda Srbije and Telekom Srbija, giving discussions a stronger operational focus around industrial cooperation and infrastructure requirements. Czech companies have invested more than €640 million in Serbia since 2010, with a significant share of that investment arriving during the last two years. Serbia currently has around 245 companies with majority Czech ownership, while bilateral merchandise trade reached €1.04 billion in the first five months of 2026, up 4.3% year on year. Full-year trade is estimated at around €2.3 billion.
Czech companies target infrastructure and industrial opportunities
The Czech business presence in Serbia is concentrated in sectors closely linked to current investment priorities, including rail systems, power equipment, water treatment, machinery, medical technology, defence production and industrial automation. Serbia is seeking to expand cooperation through the bilateral Mixed Committee for Economic Cooperation, with a proposal to raise the body’s level to ministerial status. Another meeting is expected in February or March 2027, shortly before Expo 2027 begins.
The timing provides Czech suppliers with opportunities to participate in projects connected with transport, utilities, telecommunications and exhibition-related infrastructure. Serbia’s wider investment programme includes around €48 billion of planned investment through 2035, with €17 billion expected before 2030 and a further €31 billion during 2030–2035. Public capital expenditure is projected at approximately 6.7% of GDP in 2026.
No new binding investment agreement was signed at the forum. The €640 million figure represents accumulated Czech investment in Serbia rather than newly announced commitments, while participation by 50 companies reflects business interest rather than completed financing arrangements.
Green financing expands for Serbian companies
Additional financing support became available through a new cooperation between UniCredit Bank Serbia, KfW, the German federal development ministry and the European Union. The partners launched a €43 million credit line on 22 July to support energy efficiency improvements and renewable-energy investments.
The facility is available to small and medium-sized enterprises, larger companies employing up to 1,000 people, and eligible public-sector borrowers. Standard loans can reach €1 million per client, while financing of up to €3 million is available with KfW approval. Each eligible loan includes an EU-funded grant equal to 10% of the loan value. The combined financing and grant package totals approximately €47.3 million and is expected to support around 300 companies while reducing annual carbon dioxide emissions by approximately 24,000 tonnes by 2028.
Potential investments include rooftop solar installations, industrial motors, process-heat recovery systems, building insulation, efficient refrigeration equipment, biomass solutions and replacement of outdated production machinery. The programme comes as Serbia’s benchmark interest rate remains at 5.75%, keeping conventional investment borrowing relatively expensive. Development-bank financing provides longer-term liquidity, while grants reduce the effective cost of energy-transition projects.
EBRD and NLB provide additional SME financing
The UniCredit-KfW facility follows a separate €70 million loan from the European Bank for Reconstruction and Development (EBRD) to NLB Komercijalna banka for lending to Serbian private companies. Under the agreement, at least 30% of the facility, or €21 million, must support green-economy investments, including renewable-energy projects and energy-efficiency improvements.
Together, the two development-bank programmes create €113 million of new wholesale banking liquidity, with at least €64 million allocated specifically for green investments before EU grant support is included. The EBRD-backed facility is designed to support working capital and long-term investment needs, including companies operating outside Serbia’s largest industrial centres. The different banking channels are expected to reach separate parts of the economy. NLB Komercijalna banka provides broad domestic coverage through its branch and corporate network, while UniCredit Bank Serbia will focus its KfW-supported programme on qualifying energy projects.
The financing arrives as Serbia’s banking sector remains liquid and well capitalised, with non-performing loans close to historical lows. The main challenge remains access to longer-term financing for industrial upgrades, machinery purchases and energy-transition investments.
Serbia requests more than €108 million from EU reform facility
Serbia has submitted its fourth payment request under the EU Reform and Growth Facility, seeking more than €108 million from the European Union. The request, submitted by the Ministry of European Integration on 15 July, covers 22 reform steps related to business conditions, private-sector development, green and digital transition, human capital, rule of law and fundamental rights. Seven measures are included for the first time, while 15 measures have been resubmitted following earlier assessments.
The requested funds remain subject to verification by the European Commission. The resubmission of previous measures indicates that implementation evidence or compliance requirements had not yet been fully accepted. The facility links institutional reforms with Serbia’s public finances, allowing successful implementation to unlock additional resources without equivalent market borrowing.
Serbia enters the assessment period with public debt at approximately 43.7% of GDP and government cash holdings recently reported at nearly €5 billion. Authorities continue targeting a fiscal deficit of no more than 3% of GDP. The IMF expects Serbia’s economy to grow by around 2.8% in 2026, following 2% growth in 2025, before accelerating towards 4% in 2027 as manufacturing, agriculture, energy investment and Expo-related construction contribute more strongly. Inflation stood at 3.5% in May, within the National Bank of Serbia’s target range of 3% plus or minus 1.5 percentage points. Higher energy and commodity costs remain among the main external risks.
Belgrade airport moves toward record July traffic
Serbia’s aviation sector is approaching another passenger milestone, with Belgrade Nikola Tesla Airport expected to handle more than one million passengers in July 2026. Such a result would mark the airport’s first million-passenger July and only the second month in its history above the one-million threshold.
The airport recorded 974,091 passengers in July 2025 and exceeded one million passengers for the first time in August of that year. Scheduled seat capacity for July 2026 is approximately 5.9% higher year on year, compared with the 2.7% passenger growth needed to reach the milestone. Air Serbia is responsible for the largest increase in scheduled capacity, adding around 43,416 seats, representing a 7.5% rise compared with July 2025.
The airline’s Belgrade hub is supporting tourism flows and transfer traffic between Western Europe, the Balkans, the Caucasus, the Middle East and North America. The growth has continued despite weaker demand from Middle Eastern markets and lower charter traffic to destinations including Turkey, Tunisia and Egypt. Additional Egyptian charter operations and late bookings have helped offset those pressures.
The passenger increase benefits VINCI Airports, which operates Belgrade Nikola Tesla Airport under concession, as well as aviation service providers, hotels, retailers, taxi operators and short-term accommodation businesses. Low-cost airline capacity remains a market factor. Wizz Air has warned that regulatory and competitive conditions could influence the future of its Belgrade base, which currently supports 29 routes and more than 150 aviation jobs.
A reduction in low-cost competition could affect fare levels and accessibility for European short-stay visitors, while Air Serbia’s continued expansion may offset part of any capacity changes. The expected July passenger milestone highlights the growing importance of airport capacity, airline competition and transport infrastructure as Serbia approaches Expo 2027.
