Investing in Bulgarian Markets

Bulgaria, the world's 74th largest country by Gross Domestic Product (GDP) joined the European Union on June 1, 2007. Bulgaria's currency is the Bulgarian Lev (BGN), which was exchanged at 1.3 Lev per U.S. Dollar (USD) in 2008. Since 2004, Bulgaria's economy has averaged more than 6% annual growth, attracting significant amounts of new foreign direct investment investment. Between 2004 and 2008, foreign direct investment grew by 19.6% driven primarily by increased investments in Bulgaria's Real Estate, Energy, and Manufacturing sectors.

Bulgaria's agriculture, industry, and services sectors account for 4.6%, 28.7%, and 66.7% of its GDP, respectively. Bulgaria's primary agricultural crops include wheat, corn, barley, sugar beats, sunflowers and various fruits. The country's dominant industries are Mining and Energy. Bulgaria's abundant natural resources like copper, lead, zinc, and coal are Bulgaria's main exports, accounting for 11.4% of Bulgaria's exports in 2008. Additionally, over 40% of Bulgaria's energy is generated from coal. Bulgaria's energy production industry accounts for 18.2% of the country's overall industrial GDP as its Southeast Europe's primary exporter of electricity. Bulgaria's services sector is mainly comprised of financial services and tourism. In particular, Bulgaria's natural landscapes attract almost 6 million visitors annually which contribute significantly to Bulgaria's economic growth.

However, corruption in Bulgaria's public administration and the presence of organized crime remain challenges to Bulgaria's economic development. Furthermore, Bulgaria's relatively high inflation rate (7.8% in 2008) and dependence on foreign direct investment impedes its economic growth.
Major Bulgarian Companies
Agriculture

    * Zarneni hrani Bulgaria AD is an agribusiness company that operates throughout the farmer-user food chain, selling seeds, fertilizers and other farming services as well as manufacturing biofuels.
    * Bulgartabac Holding AD manages and finances a variety of companies across the Tobacco industry including the cultivation and processing of tobacco and manufacturing of cigarettes.
    * Mekom AD is a food processing company that specializes in the production of livestock.

Telecommunications

    * Bulgarian Telecommunications Company (5BT-BG) is Bulgaria's largest company by market capitalization and serves 2.2 million hard-line phone customers and 1 million mobile phone customers.

Energy

    * Petrol AD refines and sells gasoline through its 519 retail petrol stations across Bulgaria.

Banking

    * CB Economic and Investment Bank provides personal and corporate banking services in Bulgaria.
    * Evrohold Bulgaria AD is a holding company that specializes in the acquisition and management of shares and bonds.
    * CB First Investment Bank AD offers corporate and retail banking services.

Manufacturing

    * Sopharma (3JR-BG) manufactures medicines and medical equipment and sells its products through eastern Europe and parts of Asia.
    * Druzhba Staklarski Zavodi AD produces and distributes glass containers like bottles and jars.
    * Monbat AD specializes in the production of various types of batteries.
    * Pirinhart AD Razlog produces paper & paper products.

Real Estate

    * Euroterra Bulgaria AD is a real estate development company that manages the purchase, construction and development of commercial and residential buildings for leasing or sale purposes.
    * Investment Properties ADSITS is a real estate investment trust.

Tourism

    * Albena AD is a tourism company that operates a range of hotels and tour services.[20]
    * Pamporovo AD Smolyan operates several hotels and ski resorts throughout Bulgaria.

Stock Exchange

The Bulgarian Stock Exchange or Sofia had a market capitalization of BGN 12.46 billion at the end of 2008, down 57% from a year earlier because of the global economic downturn.