The Kosovo Business Alliance (AKB) has raised concerns about the flow of remittances into Kosovo, stating that much of the diaspora’s money is tied up in housing rather than the productive sectors, the AKB said in a statement released on its Facebook page

The organisation said that in the past two decades, more than €9bn, nearly 90% of the country's 2024 GDP, has been invested in around 180,000 homes across the country.

AKB described these properties as “dead capital” that generate neither jobs nor economic growth.

“These are colossal assets, but they have been transformed into dead capital, which does not create jobs, economic development, or new income for the state,” the association said.

“AKB demands from the government the drafting of a clear strategy and real incentives for the orientation of remittances in the active economy. From the diaspora, a greater reflection and commitment to investments in manufacturing businesses, in services, in technology and in projects that generate employment and prospects for the youth of Kosovo,” Agim Shahini, chairman of the AKB, said.

The organisation blamed the lack of a government strategy for remittances and diaspora savings, noting that in the absence of favourable policies, investors prefer to place their money in real estate.

“In the absence of facilities, security, and state policies, the diaspora chooses to invest in real estate, losing the opportunity to create circulating capital that would give breath to the country's economy,” the statement continued.

AKB said the €9bn tied up in housing represented a significant asset that was poorly utilised. The group called on the government to draft a clear strategy and introduce incentives to channel remittances into production, services and technology.

Shahini said the responsibility lies both with the authorities and the diaspora. He urged Kosovo’s diaspora to reconsider its investment choices and support sectors that create jobs and prospects for young people.