Foreign investments and corrosive capital: The United Arab Emirates in the Balkans

In recent years, foreign investments have become one of the main drivers of transformation in the Western Balkans. Between 2020 and 2023, foreign direct investment flows averaged 6.4 percent of the region’s GDP, more than four times the EU average, with the majority directed to Serbia, Montenegro, and Albania.

In this context, the United Arab Emirates (UAE) has emerged as one of the most active players. A report by Carnegie describes this type of investment as “corrosive capital”: investments that not only exploit gaps in local governance but also expand them, prioritizing speed and visibility over transparency and accountability. The European Union, on the other hand, imposes conditionality that, faced with more immediate solutions, not all are willing to accept.

Read the full article by Martina Marazzini on East Journal

Photo credits: https://www.ispionline.it/en/publication/one-port-one-node-the-emirati-geostrategic-road-to-africa-131893