Official web site of
The City of Bijeljina

Economy

GEOSTRATEGIC LOCATION 

The City of Bijeljina is located in an attractive geostrategic location – at tripoint of the Republic of Srpska/BaH with Serbia and Croatia, the crossroads between large urban and industrial centres – Belgrade, Novi Sad, Banja Luka, Šabac, Tuzla, Sarajevo... At approximately thirty kilometres from Bijeljina there is an entrance to the Pan-European Corridor 10, or E-70 motorway Belgrade-Zagreb. This road is the shortest way from Semberija to Belgrade and Zagreb, and then to west and central Europe and south and east of the Balkan Peninsula. 

The territory of the City has two border crossings with Serbia, over the rivers Sava and Drina (Rača and Pavlović Bridge), which are the most frequent crossings for the traffic coming from the west and south of the Republic of Srpska/BaH to the north of Serbia and Belgrade. There is a small border crossing in Jamena where a ferry is used to cross the river towards Serbia.

     AERIAL DISTANCE    ROAD DISTANCE
BEOGRAD 101 139
BANjALUKA 160 220 (259 by motorway)
NOVI SAD 74 112
ŠABAC 36 47
RUMA 54 66
INĐIJA 76 113
BROD 104 106
ZAGREB 280 322
TUZLA 50 69
BRČKO 34 40
SARAJEVO 121 187
 AERIAL AND ROAD DISTANCE FROM BIJELJINA TO SOME IMPORTANT CITIES IN THE REGION
 

The City of Bijeljina has access to the navigable part of the river Sava towards the north. It is planned to renovate the old port in Rača, which was one of the main points of exportation in the north-east of Bosnia in the first half of the twentieth century. In the meantime, the closest river ports to Bijeljina are in Brčko and Sremska Mitrovica (40 and 67 kilometres from Bijeljina respectively). 

The railroad Bijeljina-Šid is currently not in use, but it is expected to be renovated in due course. Currently, the closest railway connection to Belgrade, Novi Sad, Zagreb, and further to the rest of Europe is in Šid and Sremska Mitrovica. 

Airport “Nikola Tesla” in Belgrade is 121 kilometres away from Bijeljina, the airport in Banja Luka is 220 kilometres away (240 kilometres by motorway through Croatia), and the airport in Sarajevo is 187 kilometres away.

LOCATION OF BIJELJINA IN THE SOUTH-EAST EUROPE


 

LOCATION OF BIJELJINA IN THE REGION
 

ECONOMIC CAPACITIES 

The City of Bijeljina is the second most developed local community in the Republic of Srpska, and all four sectors of economy are active in this community:

1. Primary sector – agriculture, forestry, hunting and fishing:

Favourable location at the edge of the Pannonian Basin and almost completely flat terrain enabled the development of agriculture, so the most of economy is based on agriculture, and Semberija is considered a granary of the Republic of Srpska and BaH. The most produced are crops – 80% (wheat, corn, barley), vegetables – 8% (cabbage, for which Semberija is known in the whole of former Yugoslavia, watermelon, cucumber, pepper, tomato...), industrial and roughage – 12% (sugar beet, tobacco, alfalfa...).

Farmers in Semberija are turning towards growing vegetables in protected areas, and there is a large, so far unused potential for heating greenhouses using geothermal water. The City Administration encourages the production of healthy food, because the environment is preserved and unpolluted by heavy industry or genetically modified organisms. Livestock production has been intensively developing recently, mostly pig and cattle breeding.

2. Secondary sector – industry, mining, civil engineering and manufacturing trades

Industrial sector in the City of Bijeljina consists of several different plants.

In processing of agricultural products two big companies lead the industry – Food Industry “Sava – Semberija” (processing and preservation of fruit and vegetables) and “Žitopromet” (milling and baking industry), as well as “Spektar-drink”, “Tanasić” and “Balatunka” (processing and preservation of fruit and vegetables). Numerous small and medium sized enterprises are engaged in the production of bakery products – “Bodaxco”, bakery “Lazić”, as well as production of cakes – pastry shops “San Marco” and “Mozart”...

The largest companies in meat processing industry are “ZP Komerc” and “Globus”, and dairy “Dule” is engaged in milk processing.

Semberija also has several fodder producers that have reached the highest standards in this industry. “Savić Company”, “Rakić Komerc”, “Intergaj” and “Kiko” stand out. Company “Agro BN” is the only producer of plant protection products in the Republic of Srpska and BaH. Within this company, there is Agricultural Institute in Bijeljina, which is one of the best equipped institutes of this kind in the Republic of Srpska.

In the field of metal industry, Aviation Institute “Orao” is engaged in the production and overhaul of equipment in aviation industry, and “S.E.P.” is engaged in the production of spare parts for cars.

“Drina” from Bijeljina produces construction material, and several enterprises extract gravel and sand from the river Drina and its banks.

The biggest plants in the wood industry, for production of furniture, joinery, panel boards and semi-finished wood products are “Mega drvo”, “BMD” and “Eurotimber”.

“Trifunčević”, “Buk promet”, “Intergaj”, “Brodac promet”, “Graditelj”, “Perić”, “Rankom inženjering”, “Nekoms project”, “Rimaks invest” are engaged in civil engineering.

3. Tertiary sector - traffic and telecommunications, trade, tourism, catering, crafts, banking and utilities

Geostrategic location of Bijeljina and Semberija allows for a fast development of activities in this sector.

- The City of Bijeljina, with approximately 115,000 inhabitants attracted the largest regional retail chains that opened well stocked mega markets (“Tropic”, “Konzum”, “Fis”, “Robot”, “Bingo”, and the largest local supermarket chain is “Bost”...). Also, goods of numerous global and domestic brands can be bought, because the manufacturers have their branch offices or distributors in Bijeljina. Beside the competition which offers local customers lower prices compared to other places in the Republic of Srpska and BaH, the possibility to decrease the price of goods by the amount of value added tax (VAT) makes the buying in Bijeljina very affordable for customers from neighbouring countries. Most of them come from Serbia.

- Agro Trade Centre “Knez Ivo od Semberije” has developed into one of the largest wholesale markets for agricultural products in the north-east Republic of Srpska and BaH. This location hosts offices of many companies and branches. Agro Trade Centre is the place for organization of fairs, and the Agricultural Fair in September is organized every year.

- Location on the banks of two rivers, spa potential, numerous religious buildings, big investments in the development of ethno-tourism, cultural happenings and entertainment, made tourism one of the carriers of economic development of the City. Additional information about tourist potential of the City of Bijeljina can be found on the web site of the Tourist Organization of the Republic of Srpska.

BENEFITS OF INVESTING

BENEFITS OF INVESTING IN THE REPUBLIC OF SRPSKA

- STABILITY OF CURRENCY

- LOW INFLATION RATE

- SIGNIFICANT NATURAL RESOURCES

- EDUCATED, QUALIFIED AND AFFORDABLE WORKFORCE

- FAVORABLE TAX RATE COMPARED TO OTHER COUNTRIES – 10%

- TAX AND CONTRIBUTIONS TO PERSONAL INCOME – 52%

- NATIONAL TREATMENT OF FOREIGN INVESTORS WHICH CAN:

  • ESTABLISH A LEGAL ENTITY OWNED COMPLETELY BY THE FOREIGN INVESTOR
  • ESTABLISH A LEGAL ENTITY OWNED COMPLETELY BY THE FOREIGN AND DOMESTIC INVESTOR
  • INVEST IN AN EXISTING ENTERPRISE
  • INVEST IN A BANK OR INSURANCE COMPANY
  • OBTAIN A CONCESSION TO USE NATURAL RESOURCES, PROPERTY IN GENERAL USE AND PERFORMING ACTIVITIES OF GENERAL INTEREST FOR THE REPUBLIC OF SRPSKA
 

- FREE TRANSFER OF PROFIT ABROAD, AFTER FULFILLING LEGAL OBLIGATIONS TOWARDS THE REPUBLIC OF SRPSKA

- BOSNIA AND HERZEGOVINA IS A SIGNATORY OF CEFTA AGREEMENT ON FREE TRADE WITH THE COUNTRIES OF WEST BALKANS AND MOLDAVIA

- PREFERENTIAL EXPORT REGIME WITH 35 COUNTRIES

- TREATIES FOR THE AVOIDANCE OF DOUBLE TAXATION SIGNED WITH 28 COUNTRIES

- PRIVATIZED BANKING SECTOR

BENEFITS OF INVESTING IN BIJELJINA 

- INDUSTRIAL ZONES EQUIPPED WITH INFRASTRUCTURE, WITH FAVOURABLE CONDITIONS FOR BUYING LAND FOR BROWNFIELD INVESTMENTS; SPECIAL BENEFITS FOR BUILDING PLANTS FOR PROCESSING OR BUY UP OF AGRICULTURAL PRODUCTS

- EDUCATED, QUALIFIED AND AFFORDABLE WORKFORCE

- EFFICIENT ADMINISTRATION

- ECONOMIC, CULTURAL, EDUCATIONAL AND HEALTH REGIONAL CENTRE

- THE CITY OF BIJELJINA, WITH THE AGENCY FOR DEVELOPMENT OF SMALL AND MEDIUM SIZED ENTERPRISES OF THE CITY OF BIJELJINA, ENCOURAGES ESTABLISHMENT AND PROVIDES SUPPORT TO THE OPERATION OF EXISTING SMALL AND MEDIUM SIZED ENTERPRISES, THROUGH SEVERAL PROGRAMS:

  • START-UP INCENTIVES FOR ESTABLISHING ENTERPRISES
  • INCENTIVES FOR DEVELOPING EXISTING AND START-UP ENTERPRISES
  • INCENTIVES FOR IMPLEMENTATION OF QUALITY SYSTEMS
  • INCENTIVES FOR WOMEN ENTREPRENEURS
  • INCENTIVES FOR RETURNEES ENTREPRENEURS
  • INCENTIVES FOR CRAFTS-ENTREPRENEURS
 

- JURISDICTION OF THE COURT OF REGISTRATION IN BIJELJINA

- DEADLINE FOR REGISTRATION 3-5 DAYS

AREAS WITH THE BEST OPPORTUNITIES FOR TRANSFER OF TECHNOLOGY AND CAPITAL

- INDUSTRY: MACHINE, AUTOMOTIVE INDUSTRY, WOOD PROCESSING, ELECTRONICS, BASIC CHEMICAL INDUSTRY, FOOD INDUSTRY, POSSIBILITY TO INVEST IN FRUIT AND VEGETABLES PROCESSING CAPACITIES, MILLING CAPACITIES, FACTORIES FOR PRODUCTION OF FODDER

- CURRENTLY, BIJELJINA HAS THREE INDUSTRIAL ZONES WITH COMPLETE INFRASTRUCTURE OFFERING NUMEROUS BENEFITS FOR INVESTMENTS IN BUILDING INDUSTRIAL CAPACITIES, AND SPECIAL BENEFITS FOR FOOD INDUSTRY

EXPLOITATION OF GEOTHERMAL WATER

- IT IS POSSIBLE TO USE GEOTHERMAL WATER FOR: MEDICAL AND TOURIST PURPOSES, HEATING OF THE CITY, HEATING OF AGRICULTURAL LAND

- NONE OF THE ABOVE HAS BEEN IMPLEMENTED IN THE FULL CAPACITY

INTENSIVE AGRICULTURAL PRODUCTION

- PRODUCTION IN PROTECTED AREAS
- PRODUCTION OF HEALTHY FOOD

FOOD INDUSTRY

- POSSIBILITY TO INVEST IN FRUIT AND VEGETABLES PROCESSING CAPACITIES
- MILLING CAPACITIES
- FACTORIES FOR PRODUCTION OF FODDER
- SPECIAL BENEFITS FOR INVESTING IN FOOD INDUSTRY IN THE INDUSTRIAL ZONES

TOURISM

- EXPANSION OF HOTEL “SVETI STEFAN” AND OTHER CAPACITIES WITHIN THE DVOROVI SPA

INVESTING IN ECOLOGY

- THREE LARGE PROJECTS CO-FINANCED BY WORLD AND EUROPEAN BANKS AND DONOR ORGANIZATIONS ARE BEING IMPLEMENTED:

  • CONSTRUCTION OF ECO FRIENDLY LANDFILL
  • CONSTRUCTION OF SEWAGE SYSTEM
  • REGULATION OF SURFACE WATERS
  • USING ENERGY POTENTIAL (GEOTHERMAL ENERGY, HYDROPOWER PLANTS, SOLAR ENERGY – OVER 1,700 SUN HOURS PER YEAR)


TRADE

- THANKS TO THE LOCATION AT TRIPOINT OF THE REPUBLIC OF SRPSKA/BAH WITH SERBIA AND CROATIA ON THE WAY LEADING FROM WESTERN PART OF THE REPUBLIC OF SRPSKA TO BELGRADE AND NOVI, THERE ARE GREAT POSSIBILITIES FOR INVESTMENT IN THE TRADE