Foreign investment

The foreign capital coming into the Polish economy has fulfilled a very important role in the process of privatisation and restructuring. The majority of foreign investment to Poland has taken the most desirable form – direct investment (FDI). Such investments have meant new companies starting from scratch or enterprises already existing on the Polish market being taken over. 

Before 1989, foreign companies did not operate in Poland (except for so-called ‘Polonia’ firms). Today, 95,6% of capital coming into the country comes from OECD countries (more than $85 billion). According to PAIIZ, about $11 billion of FDI came into Poland in 2006. The total value of FDI coming into Poland in the period 1990-2005 is $89 billion.

The majority of funds coming into the country are invested in the manufacturing sector (36%). This is followed by financial services (20%) and transport, logistics and data transfers (8%). Since the start of the 1990s, companies from the EU have become ever more interested in investing in Poland. In 1993, the value of investments from EU countries was about 47% of the total invested by foreign companies, while in 2005 it was 82%. This growth is the best evidence of the development of the Polish economy and perfectly illustrates the extent to which investors have faith in the economy.

The list of the biggest investments to Poland shows the scale of foreign capital involvement in the Polish economy. In 2004, the number of investments in European states grew 6.5% from 2003, while Poland noted growth in this period of 250%. Poland is an attractive place for foreign investors due to its competitive labour costs, the size of the market, industrial diversity and possibilities for the development of new economic entities. 

From the foreign investors’ point of view, a key question in starting activity are the legal rules governing the purchase of land and property. The Ministry of Internal Affairs and Administration decides on permission for foreigners’ to buy land. The procedure for assessing each case takes several months, but foreign investors searching usually get positive decisions when seeking to buy land. The size of the investing enterprise does not play an important role. The procedure is somewhat longer if the applicant wants property for purposes not related to economic activity or farming. 

Foreign investments in Poland in 2006