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New E-Permit System to Boost Construction in Serbia

Ikea_Serbia

A new e-permit system in Serbia, created with the help of USAID, has shortened the process for obtaining a construction permit from 240 to 28 days. It cut out the 50-plus interactions between the investor and the government. One can register for an e-permit through the Business Register’s Agency website, the Minister of Construction website, or other government websites.

The new e-permit system will help develop Serbia’s important infrastructure as well, particularly transportation. Serbia has been called the “gateway to Europe” as it is the crossroads between Western Europe and the Middle East. The Serbian parliament is looking for private investment in this sector, and the e-permits system has made this process more efficient. In addition, the new e-permit system is allowing the Clinical Center of Serbia to build new healthcare facilities. New jobs in the construction sector lead to new jobs in other sectors. The new e-permit system has not only helped construction in Serbia, it has increased the nation’s GDP by 3.5% in the first quarter of 2016.

One company already taking advantage of the new system is IKEA, and its investment is expected to bring 700 million euros and 300 new jobs to the nation. IKEA took advantage of the new permit process to build a new store in Belgrade. This new store is expected to open in July 2017. IKEA will be the first international business to invest in Serbia after the introduction of the country’s new construction e-permit system. The store in Belgrade is only the first store IKEA is building in Serbia, and the company is planning to invest 300 million euros in five stores across the nation.

IKEA will hopefully pave the way for more investment in Serbia, whether through creating new businesses or encouraging domestic construction in Serbia.

Jennifer Taggart

Photo: Flickr