Interview with Zdravko Počivalšek, Deputy Prime Minister and Minister of Economic Development and Technology, Slovenia

01 Mar Interview with Zdravko Počivalšek, Deputy Prime Minister and Minister of Economic Development and Technology, Slovenia

An excellent place to do business, the strategically located Central European country invites investors to explore the many opportunities it offers. 

What characteristics make Slovenia such an excellent place to invest in and do business?

Slovenia has been recognised as one of the world’s most sustainable countries. Our high quality of life makes Slovenia a perfect country to live and work in. Slovenia is one of the fastest-growing economies in Central Europe and Eastern Europe and is extremely export oriented. It is among the most developed nations in the world.

We have a business and investor-friendly economic environment with efficient solutions. Investors see Slovenia as a leading country in macroeconomic stability and one of the safest places in the world. The nation has the world’s second-most reliable and secure energy supply system. Slovenia is an open economy for foreign investors and ranks as one of the least restrictive countries among Organisation for Economic Co-operation and Development (OECD) members.

Slovenian business partners also choose Slovenia for its high degree of industrialisation and proximity to major production hubs. We have an excellent geographical position in the heart of Europe and at the crossroads of the Trans-European Transport Network. We have a good reach to global supply chains. We have quality infrastructure with well-developed transport and telecommunication networks. Our fast development has attracted many international companies to become our partners and suppliers. Slovenia means easy access to 700 million people in regional markets.

We are taking steps to build a green, creative and smart economy. We strive for a systemic and efficient approach in everything we do. Slovenia is rich in natural resources, such as wood, soil and water. It has great potential to transition to a green economy.

We have a corporate culture of transparency and accountability. We observe international technical standards and personal integrity. Our loyalty to businesses makes a foreign manager’s job easy. Slovenia’s talented workforce delivers creative and sustainable solutions. Investor confidence thrives on legal and institutional reforms designed to facilitate investment. Starting a company is straightforward and made easy through single-access points to register a limited liability company, obtain a construction permit and carry out other administrative procedures. We have worked tirelessly to ensure Slovenia’s business and investment environment remains competitive. We have supported domestic and foreign direct investments through various incentives for research and development, employment and financial subsidies.

Slovenia is on the right path to attract investments as it encompasses key future investment trends. Slovenia is a prime location to establish development, research, marketing and other business activities. Our government continues to support investments that bring higher added value per employee. The state is working towards green and digital sustainability and to reduce environmental impact.

If you are searching for a new investment, a reliable business partner or if you plan to set up or relocate an export business, choosing Slovenia could be the best decision you have ever made. We warmly invite investors to consider the country.

How significant are countries in the Middle East in Slovenia’s trade markets?

The Gulf countries represent an important region for Slovenia and the European Union (EU), especially in times of global supply chain disruptions. Slovenian trade with members of the Gulf Cooperation Council has been increasing, particularly with Saudi Arabia and the UAE. The trade exchange with Saudi Arabia more than doubled in 2021 compared to the previous year.

The UAE is Slovenia’s second-biggest partner among the Gulf states. However, the trade exchange is still modest; there is growth potential. To further strengthen our bilateral cooperation, Slovenia decided to open an embassy in Abu Dhabi in 2019.

Many Slovenian small and medium-sized companies (SMEs) are already present in the Gulf region, especially in the Emirates. They are partnering in the segments of high-tech solutions, green economies, smart cities, health services, design, biotechnology and waste management. We would like to encourage enhanced cooperation in logistics, infrastructure, energy, health, food processing, tourism, science and technology, including artificial intelligence. We encourage partners from the Gulf region to explore investment opportunities that Slovenia has to offer.

Slovenia’s active participation in Expo Dubai 2020 is of vital importance and represents a door to the region. We have a very large business programme set up at our pavilion, with more than 400 Slovenian companies participating. The presentation of Slovenia is focused on the three following points: knowledge, economic opportunities and our unique and sustainable experiences. The pavilion will remain in Dubai for the years to come.

How well has Slovenia coped with challenges related to the Covid-19 pandemic?

The Covid-19 pandemic presented us with many challenges. Luckily, the EU and Slovenia reacted swiftly in 2020. Economic, monetary and fiscal policies helped avoid the worst consequences. Support measures have enabled many companies — especially SMEs — to cope with the immediate effects of the recession. We helped companies with cash flow problems to meet their most urgent liquidity needs.

The government of Slovenia introduced 10 intervention laws and other measures. The outcome for the Slovenian economy has been good; we ranked among the best performers amongst OECD members in terms of how well we coped with the economic aspects of the pandemic. We are recording economic growth above all expectations. Unemployment rates have also reached a record low and revenues in the form of taxes and contributions are increasing. Europe’s recovery plan has provided us with extra financial resources. It is now up to EU member states to take advantage of these funding opportunities and implement our national recovery and resilience plans.

Can you give us an overview of your ministry’s contributions to Slovenia?

The Slovenian Ministry of Economic Development and Technology covers a wide area of topics, all dedicated to enabling our businesses to have a stable, predictable and competitive economic environment for growth and development. We provide support for the international activities of Slovenian companies, support the tourism and wood industries and foster entrepreneurship and technological development.

An important basis for our activities was the Operational Programme for the Implementation of the EU Cohesion Policy in the 2014-2020 period. We encouraged foreign and domestic investments, especially high-tech foreign direct investments. We provided new jobs and knowledge and technology transfer. We promoted the internationalisation of Slovenian companies, especially SMEs, through various promotional activities such as fairs, business delegations, Slovenian business clubs and partnerships for joint entry into foreign markets. The government also launched the SPOT project to support major domestic and foreign investors and supply services for the internationalisation of companies. Furthermore, we have offered support to startup companies by co-financing SMEs through equity and debt sources.

We have established strategic development partnerships for the promotion of technological development and innovation, and formed various research-and-development and pilot-demonstration projects. In doing so, we help companies to strengthen their competencies and innovation potential by encouraging purchases of new technological equipment and the implementation of research and development projects within the Eureka and Eurostars programmes, particularly in areas of the country with high unemployment.