Serbia has strengthened its performance in international assessments of business conditions, with high rankings for starting businesses, regulatory framework and operational efficiency, while investment requirements increasingly extend beyond market entry.
The World Bank’s Business Ready 2025 assessment placed Serbia among nine economies in the top quintile in two of its three broad pillars. Serbia ranked 18th among 101 economies for regulatory framework and 19th for operational efficiency, while taking fourth place globally for starting a business.
Regulatory Performance and Competitiveness Improve
Serbia also ranked among the top 20 economies in four additional areas covering the business lifecycle. An OECD assessment of Western Balkan competitiveness found that Serbia had improved in eight of 15 policy areas compared with 2021 and performed above the regional average in 13 areas. The strongest improvements were recorded in agriculture, science, technology and innovation, and employment policy. The developments indicate that administrative requirements associated with establishing a business have become less central to Serbia’s investment environment than they were a decade ago.
Investors Focus on Conditions After Market Entry
For companies operating in Serbia, attention increasingly extends to the conditions required to maintain and expand operations. Manufacturers consider labour availability, energy security, logistics, industrial land, electricity and gas connections, environmental permitting and access to skilled workers when assessing operating conditions.
Larger investors also require predictable legal enforcement, efficient dispute resolution and financial markets capable of supporting expansion. These factors are increasingly relevant as Serbia’s foreign direct investment base expands.
Manufacturing Accounts for Significant FDI
Serbia attracted €24.4 billion of foreign direct investment between 2020 and 2025, with almost 60% directed toward tradable sectors and approximately €6.3 billion invested in manufacturing. The investment cycle has therefore moved beyond the initial decision to establish operations. Existing investors also face decisions over where to allocate subsequent rounds of capital. The factors affecting an initial factory investment can differ from those considered when an established company evaluates an expansion. For later investment, productivity, electricity availability, supplier quality, engineering skills, transport links and operating costs become key business conditions.
Retaining Investment Becomes Increasingly Relevant
Serbia’s fourth-place global ranking for starting a business covers the beginning of the investment lifecycle, while the performance of companies already operating in the country depends on broader infrastructure, labour, energy and institutional conditions. As Serbia seeks to retain existing investors and attract further industrial capital, competitiveness after market entry becomes increasingly connected with the ability of established companies to expand their operations and allocate additional investment.
