In the past, the main industry sectors of Bulgaria were metallurgy, machine
manufacture, chemicals, and agriculture. Recently, however, the priority has
shifted to sectors like energy, tourism, transportation, IT and
telecommunications, food and beverage, pharmaceuticals, and textile and
clothing. In the last few years, the Government undertook measures to
restructure the energy sector. These measures aimed to:
In 2002, Bulgarian Parliament approved the Energy Strategy of the Republic of
Bulgaria, declaring as its priority the development of a competitive energy
market. In the beginning of 2008, the Government of Bulgaria and representatives
of Russia signed a general framework agreement in support of the South Stream
project for transit of natural gas from Russia to Southeast Europe and Italy.
Another natural gas transport project - Nabucco - is planned to pass trough the
territory of Bulgaria. The Nabucco project envisages transit of natural gas from
the Caspian Sea and the Middle East to Central and Western Europe.
Priorities of the Government’s policy in transportation include:
- Active investment strategies for developing a modern infrastructure through
financing from the Government, EU funds, and other funding sources;
- Privatization of large transpiration companies and the granting of
concessions for airports as well as the ports at the Danube River and the Black
Sea;
- Financing stabilization and modernization of the state-owned railway
transportation and railway infrastructure companies.
 Liberalization and modernization measures were undertaken for the
communications and high technologies sector. Mobile penetration in the country
rose rapidly over the last few years and was estimated at 117.4% as of September
2007, which is the second best heist in Eastern Europe, following the Czech
Republic’s 123%. According to the European Information Technology Observatory
(EITO), the IT market in Bulgaria is growing at a two-digit rate and will
continue to increase at an average of 12.4% per annum until 2009.
 Real Estate
Bulgaria is currently considered to be one
of the world’s best property hotspots. According to the Knight Frank Global
House Price Index Q1 2008, Bulgaria had the greatest annualized price growth of
, at 31.5%. Despite signs that the property market in same areas is approaching
saturation point, residential property prices continue to rise in Bulgaria.
Sofia, the Bulgarian capital, offers excellent investment potential and,
according to Ernst & Young’s report for 2008, investor confidence in
Bulgaria is set to continue well into 2009.
- Bulgaria has the lowest prices of services and real estate of any country in
the EU; it also has the potential to increase until it reaches the levels of
other EU countries.
- Bulgaria is a politically stable state, with a strong banking system that
can withstand significant financial or economical setbacks.Ø Sofia provides
opportunities for high return strategic investments.
- According to projections of the World Travel Tourism Council, 16 million
tourists will visit Bulgaria per year by 2017.
- Significant investments have been made for the purposes of developing the
country’s infrastructure, supported by EU funds.
- The country’s favorable geographical location provides perfect climatic
conditions for year-around activities like skiing and snowboarding during the
winters, sunbathing and scuba diving during the summers, and great possibilities
for adventure tourism, spa and recreation, and cultural and congressional
tourism.
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