Consultancy services offered to foreign investors for entering the Romanian market increased by 30% in the first half of this year, compared to the same period the previous year. The growth was mainly registered due to the unfavorable events in Ukraine, such as the military conflict in the region or the nationalization measures announced in Hungary, according to Accace.

“The first six months of 2014 were more dynamic than the same period last year when it comes to foreign investors’ interest for the market in Romania, them seeing Romania as the most sable country in the region,” said Bogdan Badea, Managing Director Accace in Romania.

Besides the external developments, there were also a series of internal factors that contributed to Romania’s increased attractiveness to foreign investors, according to Accace. Some of these factors are the reduced labour costs compared to the professional training and knowledge of foreign languages, as well as the cost/quality ratio for the local office spaces, which is one of the best in the region.

However, despite the favorable factors, foreign investments to Romania declined by 10% in the first six months of this year.

“The increase in Romania’s attractiveness for foreign investments doesn’t automatically mean they will be attracted. The investors are interested, but they remain on hold, and one of the main reasons are the elections this fall,” said Badea.

In the first half of 2014, besides IT and agriculture, the areas of interest for investors also included the outsourcing industry.

However, according to Accace, there are a series of risks that might reduce the country’s attractiveness in terms of investments. Some of these risks are the country’s fiscal uncertainty, which doesn’t create a positive image in the eyes of investors, and the bureaucracy.

Irina Popescu, irina.popescu@romania-insider.com