Romania sees 1.2% dip in new foreign-owned firms in Jan-May

The foreign capital of the new companies fell by 16% to $14.4 million (13.5 million euro) in the review period, according to data published by ONRC on Wednesday.

In May alone, 571 companies financed with foreign capital were registered in Romania, down 8.9% on the year.

Foreign direct investment (FDI) flow in May echoed the dynamic of the previous month, as most newly established companies were active in wholesale and retail trade, car and motorcycle repairs (26%), professional, administrative, scientific, and technical activities (22%), as well as transport, storage and communications (18%).

Real estate companies accounted for 26% of the share capital of foreign-owned companies established in May. Electricity, heat, gas, and water supply companies followed with a share of 22%, while financial brokerage and insurance enterprises along with those operating in wholesale and retail trade, car and motorcycle repairs, and transport, storage and communications accounted for 14% and 12%, respectively. Other sectors sliced single-digit shares.

As of the end of May, Romania hosted 254,105 foreign-owned companies with a total capital of $70.643 billion. Italian investors held the largest number, with 52,756 companies or 21% of the aggregate. Despite only tallying 6,084 entities, Dutch investment remained at the top in terms of share capital, contributing $13.008 billion or 20% of the total.

FDI in Romania in the first four months of 2024 soared by 34% on the year to 3.23 billion euro, data from the country’s central bank has shown.

The Foreign Investors Council in Romania (FIC) said in March that investor sentiment improved in the spring of 2024, with 53% of surveyed investors considering the Romanian market more attractive than its peers, compared to 34% in November.

($=0.9341 euro)