Legal Market Overview
Kosovo’s post-pandemic return to growth slowed in 2022, but maintained enough momentum for lawyers and businesses to maintain a positive outlook. Renewable energy projects, mining, construction and the technology and services sectors were key drivers for the economy, and are likely to remain so for the next year. Net inflows of foreign direct investment are also on an upward trajectory. Potential barriers to growth come in the form of geopolitical issues, notably the global energy crisis and nervousness from investors over rising tensions with Kosovo’s northern neighbour, Serbia. Kosovo officially applied for European Union membership in December 2022, although on top of the other challenges candidates in the Western Balkans face, five EU members continue to not recognise Kosovo’s sovereignty; Kosovo also unilaterally adopted the Euro from its launch, a continuation of Kosovo’s de facto use of the Deutsche Mark since 1999.
Kosovo’s commercial legal market remains relatively small, and some firms operate more like a barristers’ chambers rather than as an integrated partnership. Pallaska & Associates holds a dominant position in the market, with increasing competition from Albania’s Boga & Associates as well as local firms such as Kerveshi & Partners Law Firm, Vokshi & Lata Law Firm and RPHS Law. As far as legal arms of the major accountancy firms are concerned, Deloitte Legal shpk also has a significant presence in the country.