Ikea to Invest €1 Billion in Serbia

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In an interview with Belgrade's monthly "Business Magazine", the ambassador said that Ikea had long-term plans for the Serbian market.

"I'm not directly involved in negotiations, as it is not my job to negotiate on behalf of private companies. As far as I know, Ikea's management plans not only to sell goods in Serbia and open a shopping centre, but to make furniture here as well," the magazine quoted him as saying.

Ikea reportedly planned to start building its factory in Serbia by 2012 in exchange for the provision of cheap land. Ikea then allegedly sought to scrap the entire plan. The Serbian government subsequently withdrew the land offer, while still assuring Ikea representatives that the company was welcome in Serbia.

In February this year, Serbian Deputy Prime Minister Bozidar Djelic agreed with Swedish Minister for Trade Ewa Bjorling that the Swedish company could open its first shopping centre in Belgrade next year. 

"Serbia's government and the city of Belgrade will do everything for Ikea to open its first Balkan shopping centre in Belgrade and then in other cities in Serbia," Djelic said on the occasion.

Despite difficulties that Ikea management had in finding a suitable location for building the sales centre, Bringeus expressed hope that talks with the Serbian government would help find a suitable solution.

He went on to say that from the perspective of potential Swedish investors Serbia is a very important market.

"Regionally speaking, your geo-strategic position is excellent as you are actually in the centre of the region. Also, Serbia has many advantages such as highly qualified, educated and cheap labour force. Another advantage for the development of economic relations [between the two countries] is that the Serbian diaspora in Sweden is big," he said.

It is believed that the Ikea project could create around 9,000 new jobs.

www.balkaninsight.com

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