December 7 (SeeNews) - Between 400 and 700 companies registered by foreign nationals in Bosnia are fictitious, established for the sole purpose of purchasing real estate in the country, security minister Dragan Mektic said.
Bosnia's department for foreign affairs is currently carrying out an operation codenamed "Property", under which it is investigating 700 legal entities and 16 tourist villages on suspicion of fraud, Mektic said at a news conference aired live on Tuesday.
There are concerns about Bosnia's security and the country's economic system, Mektic noted.
The investigation targets nationals of Kuwait, Saudi Arabia, Syria, Libya, Ukraine and Russia.
"I have nothing against foreign investment, but it is known that we welcome serious investors, and investments that will bring value and hire local people", Mektic explained.
In the past few years, several luxury resorts have popped up around Bosnia, especially in the vicinity of its capital Sarajevo, built by foreign investors, mostly from Kuwait and other Middle Eastern countries. The estates are being built for citizens of Arab countries who have taken to Bosnia because of its moderate climate.
Their arrival, however, has sparked controversy, with many fearing their permanent settlement in Bosnia.