Free zones in Serbia in 2023 achieve best results since their founding – Biggest surplus at Pirot Zone

Last year, the free zones in Serbia recorded the best business results since their founding, writes the Biznis i finansije monthly. Investments in free zones reached the record-amount of EUR 980.7 million, and foreign investments in free zones comprised more than a fifth of the total foreign investments in Serbia. The companies which operate in the 15 free zones realized a surplus in foreign trade in the amount of EUR 926.5 million, which is an increase by more than 48% compared to 2022.

Free Zone Pirot had the biggest surplus. A total of 254 companies operated in free zones, of which 204 domestic ones and 50 foreign ones. A total of 44% companies are in the manufacturing business, whereas the other companies provide services. The companies in the free zones last year increased the total turnover compared to 2022 by over 22% to EUR 7.71 billion, whereby three business zones, for the first time, exceeded a total turnover of EUR 1 billion.

Compared to the first years of the operations of free zones in Serbia, it is now noticeable that the regional differences are gradually being reduced. Last year, the six free zones in Belgrade, Subotica, Novi Sad, Sabac, Pirot and Uzice participated in the total turnover of the most successful free zones practically equally. The weakest result was recorded by FAS Free Zone in Kragujevac, with a turnover of EUR 142.8 million, which is a drop of nearly 57% compared to 2022. In 2013, that free zone contributed nearly 66% to the total turnover of the free zones in Serbia, whereas, in 2023, its participation in the turnover amounted to below 2%. The turnover grew considerably in as many as 11 business zones, thanks to the fact that the companies which operate in them had increased investments, started new production and expanded the existing production capacities.

Last year, companies from China and Japan invested the most in the free zones in Serbia, over 57% of the total investments. Ten companies from China invested a total of EUR 506.7 million in free zones throughout Serbia, nearly 22% more than in 2022.

The biggest last year’s investment, in the amount of EUR 357.7 million, was realized in Free Zone Zrenjanin, and it is the factory of the Chinese company Linglong for the production of car tires. It is noticeable that the German companies which operate in the free zones in Serbia also considerably increased the investments. They reached EUR 290.7 million, which is 2.5 times as much as in 2022.

Parallel with the growth of investments, the number of employees in the free zones increased as well, by slightly over 2%, to 46,105 workers. Seven free zones employ more than 4,000 workers, five of them employ more than 5,000, whereas two free zones employ more than 6,000 workers.

Last year, five new factories opened in the free zones, so 112 companies from 21 countries from three continents were active in production. The majority of producers come from Germany (24), Serbia (23) and Italy (19). Nearly two fifth of the producers operate in Sumadija and western Serbia, whereas the 11 Chinese production companies are distributed across free zones from the north to the south of the country. The value of the production in the free zones in 2023 reached its historic maximum and amounted to EUR 3.88 billion. It is a growth of over 22% compared to 2022, and more than 95% of the products were exported. The biggest producers mostly belong to the sector of the automotive industry.

Some of the biggest multinational companies, which are on the list of the most successful exporters from Serbia, operate in the free zones. Thereby, among the tend biggest exporters of 2023 are also the users of the free zones, the German company ZF, which operates in Free Zone Belgrade, as well as Tigar Tyres, which belongs to the French Michelin Group and works within Free Zone Pirot.

Linglong International Europe d.o.o. Zrenjanin

ZF Friedrichshafen AG Beograd

Tigar Tyres doo Pirot

Slobodna zona Pirot ad Pirot

Slobodna zona Beograd a.d. Beograd

Slobodna zona Novi Sad doo Novi Sad

Slobodna zona d.o.o. Užice

Slobodna zona Šabac doo Šabac

DOO Slobodna zona Subotica

Slobodna zona FAS d.o.o. Kragujevac

Slobodna zona Zrenjanin

Linglong Zrenjanin

ZF Belgrade

Tigar Tyres Pirot

Michelin Group

Free Zone Pirot

Free Zone Belgrade

Free Zone Novi Sad

Free Zone Užice

Free Zone Šabac

Free Zone Subotica

FAS Free Zone Kragujevac

Free Zone Zrenjanin

operations of free zones in Serbia