Mostar - Economy

Economy

Mostar's economy relies heavily on the aluminum and metal industry, banking services and telecommunication sector. The city is the seat of some of the country's largest corporations.

Along with Sarajevo, it is the largest financial center in Bosnia-Herzegovina, with two out of three largest banks in the country having their headquarters in Mostar. Bosnia-Herzegovina has three national electric, postal and telecommunication service corporations; one of them in each group has its seat in Mostar (electric service corporation 'Elektroprivreda HZHB', postal service company Hrvatska Pošta Mostar and HT Mostar, the third largest telecommunication company in the country). These three companies (along with banks and aluminium factory) make a vast portion of overall economic activity in the city. The private sector has seen a notable increase in small and medium enterprises over the past couple of years contributing to the positive business climate. Considering the fact that three dams are situated on the city of Mostar’s territory, the city has a solid base for further development of production. There is also an ongoing project for the possible use of wind power and building of windmills.

Prior to the 1991-1995 Bosnian War, Mostar relied on other important companies which had been closed, damaged or downsized. They included SOKO (military aircraft factory), Fabrika duhana Mostar (tobacco industry), and Hepok (food industry). In 1981 Mostar's GDP per capita was 103% of the Yugoslav average

The only company from the former Yugoslavia, which still works well is Aluminij. Aluminij is one of the country's strongest companies and it has a number of international partners. The company steadily increases its annual production and it collaborates with leading global corporations such as Daimler Chrysler and Fiat. Aluminij is one of the most influential companies in the city, region, but also country. In relation to the current manufacturing capacity it generates an annual export of more than €150 million. The partners with which the Aluminij does business are renowned global companies, from which the most important are: Venture Coke Company L.L.C. (Venco-Conoco joint Venture) from the USA, Glencore International AG from Switzerland, Debis International trading GmbH, Daimler-Chrysler and VAW Aluminium Technologie GmbH from Germany, Hydro ASA from Norway, Fiat from Italy, and TLM-Šibenik from Croatia. Mostar area alone receives an income of €40 million annually from Aluminij.

Mostar also hosts the annual International Economic Fair Mostar ("Međunarodni sajam gospodarstva Mostar") which was first held in 1997. The Fair consist of several smaller sections: "The Economy Fair", "Wine Fair", "Book Fair" and "Food Day".