Serbia recorded approximately €840 million in net foreign direct investment inflows during the first half of 2026, while gross incoming investment was materially below the exceptional levels recorded during the years preceding 2026.
The distinction between gross and net flows is significant for assessing the country’s investment position. The improvement in net FDI was supported partly by a substantial decline in investment by Serbian residents abroad. With fewer domestic investors transferring capital overseas, Serbia’s net FDI balance can strengthen even when gross inflows of foreign capital are lower.
Foreign investors remain active across key sectors
Serbia continues to attract investment across manufacturing, real estate, mining, energy and services. Chinese automotive suppliers are expanding their presence, while European and other international investors remain active across the Serbian economy.
At the same time, the volume of new gross foreign investment has moved away from the unusually high levels recorded earlier in the decade. The normalisation in investment flows comes as Serbia has developed established industrial and technology ecosystems spanning automotive production, electrical equipment, machinery, mining and technology.
Existing investment base becomes increasingly important
The country’s investment structure increasingly includes operations that are already established rather than consisting solely of newly announced projects. This places greater emphasis on the development of existing foreign-invested businesses, including deeper local supply chains, higher-value activities and expanded functions within Serbia. The ability of companies already operating in the country to increase their local sourcing and develop more advanced activities forms part of the broader investment environment.
Portfolio financing adds to Serbia’s capital mix
Alongside FDI, Serbia has increased its use of portfolio financing, including international sovereign bond issuance. Portfolio capital provides liquidity but differs fundamentally from long-term industrial foreign direct investment, making the composition of capital inflows an important element of Serbia’s overall financing structure. The country’s foreign-investment position therefore reflects several different forms of capital rather than gross FDI alone.
Serbia continues to attract international capital across multiple sectors, while the first-half 2026 figures show a more moderate level of gross FDI than during the exceptional investment period earlier in the decade. Within the existing foreign-invested base, reinvestment of profits, research and development, local sourcing and integration of Serbian companies into higher-value supply chains remain key areas of investment activity.
