While energy is still going strong in the Serbian market, others such as biotechnology and blockchain are certainly worth keeping an eye on, according to SOG in cooperation with Kinstellar Managing Partner Milos Velimirovic.
"The energy sector continues to dominate in Serbia," Velimirovic begins. "Currently, wind energy is booming, and solar energy is also gaining traction – there are even discussions about nuclear energy." According to him, "the sector is at the top of the list in terms of transactions, deals, and the number of players involved. The new government has shown a keen interest in this sector, aligning with previous agendas but with renewed vigor."
Further, Velimirovic mentions that biotechnology is an emerging area of particular interest in Serbia at the moment. "Biotech is catching our attention, albeit with less media coverage. For instance, ZoryaBio, a multidisciplinary team, has developed an interactive map of cancer prevalence in Serbia based on various criteria," he says. Although the team is not composed of doctors, Velimirovic outlines that "their work is immensely valuable for medical professionals. Serbia ranks among the top four countries globally for biotech, driven partly by a high incidence of cancer and other diseases." Moreover, Velimirovic indicates that the new government's strategic documents reveal substantial planned investments in this area, including a dedicated scientific sector with funding between EUR 400 million and EUR 500 million. "I believe biotech will become one of the top three or four sectors to watch in the coming years," he says.
As for other cutting-edge areas – blockchain and crypto – Velimirovic reports that developments are plenty. "The crypto and blockchain sectors are also booming, though they are not yet mainstream. The startup community is thriving, with several new VC funds being established and local players entering the market." As he explains it, this influx is "making Serbia competitive on the startup scene, supported by both international schemes and local initiatives."
Velimirovic explains that it could all be connected with an election cycle that just ended in Serbia. "Post-elections, we've noticed an uptick in activities and deals, including some larger transactions. While not directly correlated, the new government's appointment has positively influenced the M&A market and our workload." Velimirovic elaborates that the government's "renewed focus on strategic investments and legislative activities post-election has contributed to this momentum."
Velimirovic reports that there are not many worthy to report on. "Legislative activities were somewhat on hold due to the elections. Meanwhile, the Rio Tinto lithium mine project, previously a topic of much public discussion, remains under consideration and is likely to be resumed."
Lastly, he reports that the upcoming "Expo 2027 project is quite significant, with extensive planned investments that will have a broader impact on the economy."
