15 May Interview with Mr. Marko Čadež, President Serbian Chamber of Commerce and Industry
What key factors have contributed to Serbia becoming a key hub for innovation and investment in Southeast Europe and how does Serbia stand out as a manufacturing and service hub for American businesses exploring investment in Europe or Eastern Europe?
Looking back at Serbia’s progress over the past decade, it’s clear that the country has undergone a remarkable transformation. Just 12 years ago, in 2012, Serbia was on the brink of a fiscal crisis, struggling with debt, inefficient public spending and over 600 state-owned enterprises that were draining resources. Fast forward to today and Serbia is the second-fastest growing economy in Europe, with projections indicating it could become the fastest next year. The numbers tell the story: GDP has more than doubled, exports have increased 3.5 times, ICT service exports are up tenfold and unemployment has dropped from over 20% to 8.5%.
One of the key achievements in Serbia’s transformation is shifting from a labor-intensive economy focused on low-value, automotive parts production to a knowledge-based economy. This shift, which took place over just 10 years, is a remarkable success. Early automotive factories, which started with low-tech parts manufacturing, have evolved alongside new factories, producing increasingly complex, high-tech products. Today, Serbia is home to R&D hubs, such as Continental’s automotive center and last year AMD opened engineering centers in Belgrade and Niš where, in partnership with a Serbian innovative company and relying on domestic IT experts, it develops cutting-edge computer chip technologies. For two decades, Belgrade has been home to one of Microsoft’s largest R&D centers, where engineers develop software for tools such as Microsoft Azure for AI. This highlights Serbia’s transformation not only economically but also in fostering a knowledge-based environment. Education policies have supported this shift. We currently have 88,000 STEM students, twice as many as before. The government introduced incentives for investment in research and development and invested in science and technology parks and infrastructure for new technologies, making Serbia an attractive hub for both domestic and international research.
As someone representing Serbia’s business interests, I’m proud of this progress. The Chamber of Commerce and Industry, with 19 industry associations and over 200 sub-associations, is deeply involved in this evolution, supporting businesses as they grow. Eight years ago, Serbia made coding mandatory in primary schools, making us one of the few countries where it’s a requirement, just like math or physics. This decision reflects a broader shift in education, focusing on fostering entrepreneurial thinking from an early age.
What does Serbia’s innovation look like in terms of investment figures and economic performance?
Serbia’s startup ecosystem has grown by 33-60% in cities like Belgrade and Novi Sad, now valued at €1 billion. While not huge, it’s the fastest-growing in Europe and with advancements in technology this growth will accelerate. The US is Serbia’s top market for software exports and ICT services are now Serbia’s first export product to the world, surpassing even the best-selling products of traditional industries. If we look at exports per capita, Serbia’s software exports are ahead of countries like Germany and the UK, highlighting the scale of transformation.
Serbia attracts 60% of all foreign direct investments (FDI) in the region, a clear indicator of its strong business environment. Around 20,000 companies in Serbia are foreign-owned, with 10,000 from EU member states and nearly 1,000 from the US. Apart from major investors in the manufacturing sector, from Coca Cola and Philip Morris, through Lear Corporation to Johnson Controls, Ametek and other global players, in recent years, US companies from the ICT sector have made substantial investments in Serbia.
Serbia’s strategic location and free trade agreements (FTA) give companies duty-free access to 2.8 billion people, including markets in Europe, Turkey, China, the UAE, the US and Japan. The FTA with Egypt has also been signed and its ratification is expected soon and negotiations on a Partnership Agreement with Korea are underway. Additionally, Serbia’s skilled labor force, reasonable production costs and low energy prices make it an attractive destination for foreign investment. These advantages make Serbia an increasingly appealing option for international businesses. Producing in Asia for the European market presents logistical and political challenges, especially with issues like the Suez Canal and long shipping times. Having a production facility in Europe is key and Serbia offers an attractive location for companies.
Over the past decade, Serbia has created a favorable environment for FDI, ranking among the top countries relative to its economy size. The government offers incentives and continuous support throughout the process, from business setup to factory construction and operations and 24/7 assistance to companies is ensured through the Development Agency and the Chamber of Commerce and Industry of Serbia. This personalized support is a key factor that makes Serbia stand out.
The recently signed FTA with China and significant Chinese investments exceeding €6 billion are reshaping Serbia’s trade dynamics. What tangible results have come from the FTA in terms of FDI and trade growth?
The free trade agreement with China led to over a 40% increase in exports to the Chinese market in the first six months after its signing, highlighting the growing importance of this market for Serbian exporters. As European economies stagnate, FDI from the US and Asia, especially from China, Japan and Korea, has increased as these countries seek to establish a presence in Europe. Serbia stands out as an ideal location for companies aiming to access the European market. The country is positioning itself strategically in the electric vehicle (EV) and e-mobility sectors, with companies like Stellantis starting EV production and Serbia’s rich lithium reserves enhancing its role in the green transition. This integrated approach to the supply chain gives Serbia a competitive edge in the industry.
Serbia has historically been a bridge between East and West. We have learned how to balance throughout history. As the largest republic of the former Yugoslavia, Serbia was a place of dialogue, we cooperated with both the East and the West and as part of the Non-Aligned Movement, with African countries and other partners worldwide. This legacy allows Serbia to be welcomed not only in Western countries like the US and EU, but also in Eastern countries and fast-developing markets in Africa.
As President of the Chamber of Commerce for the past 10 years, I have worked to represent the private sector and protect its interests while fostering regional cooperation. Our small markets are not enough on their own, so working together — first within the region and later within the EU — is essential. Over the years, we have made significant progress, particularly between Serbia, Albania, North Macedonia and Bosnia. Economically, we are interconnected, with strong synergies between industries. Serbia excels in automotive, electronics and ICT, while Bosnia is known for furniture and raw materials and Albania shines in tourism and green energy. By working together as a region, we offer investors access to larger markets, from 6.5 million in Serbia to 22 million across the region. Despite past political challenges, leaders now recognize the importance of cooperation for mutual success.
How does Serbia’s involvement in e-mobility and other sustainable initiatives reflect its broader vision for innovation and economic development?
Serbia has a huge potential for establishing a value chain in the e-mobility sector from mining, through the production of cathodes and batteries to electric car factories. At the beginning of that chain there are large reserves of lithium and other rare materials such as copper, graphite and boron that we have and that are needed for new technologies. For example, today, Serbia is the second largest producer and exporter of copper in Europe. The country also benefits from a skilled workforce, advanced engineering and research capabilities, alongside a strong automotive industry. This makes Serbia an ideal hub for e-mobility, which is now a top priority for the economy. Many global companies are keen to invest in Serbia for its strategic role in the value chain and its position within the European economic area. With Europe striving to catch up in e-mobility, Serbia’s role in the automotive sector is becoming increasingly vital.
Securing the Expo for Serbia is a major achievement, bringing over 140 countries and 4 million visitors to Belgrade. This event will create a new city district and one of Europe’s largest trade fair centers. Beyond the three-month exhibition, it offers long-term opportunities to host international conferences and trade fairs. We are working closely with Gitex Global, the world’s largest technology fair, to bring major conferences to Belgrade, positioning the city as a hub for business, especially in technology.
The Chamber of Commerce and Industry of Serbia plays a central role in the country’s economic landscape. Can you elaborate on the Chamber’s key project and agenda for 2025?
One of our core roles as a chamber is protecting the interests of businesses and the private sector in relation to government. Regulation will play a key role in the challenges businesses face globally and success depends on collaboration with businesses to shape regulations. We aim to foster dialogue to ensure regulations don’t hinder innovation. As active members of Eurochambres, we work on the European level to address the “exponential gap,” where technology advances faster than political, economic, or social structures. Our goal is to enable transformation and innovation through proactive regulation, helping businesses grow faster.
At the same time, apart from regular activities to support companies in strengthening their personnel potential, digital and green transformation, we are currently also working on several strategically important projects, one of the most significant of which is the Scale-up Factory. Our intention is to connect companies from traditional industries with the innovative start-up ecosystem all in one place, in order to find solutions for the real problems of their industry, for the improvement of production and business processes, products and services. They have to be part of the digital economy to survive and develop. At the same time, it will enable innovative start-ups to turn their technological solutions into sustainable products or services.
The Chamber of Commerce and Industry of Serbia is the center of this network and we are actively cooperating on this project with state institutions, the Ministry of Science and Technological Development, science and technology parks, universities and, of course, with our members – companies and enterprises.
What is your final message about Serbia or the Serbian Chamber of Commerce?
Serbia’s success story shows we are not just a fast-growing economy, but one shaping the future of technology, energy and sustainable business in Europe. With Expo 2027, e-mobility production and a booming ICT sector, Serbia is where global innovators and entrepreneurs should focus. US entrepreneurs seeking new markets and the chance to build from scratch should look to Serbia.