Summary
1 A Few numberS oN Croatia 3
2 Economic overview of Croatia 5
3 Security sector in Croatia 7
3.1 Summary 7
3.2 Figures in security and safety market in Croatia 8
3.3 Law on fire protection 11
3.4 Useful links 11
4 Contacts 12
4.1 Doors (automatic doors and electronic access control) 12
4.2 Security doors 15
4.3 Alarms and surveillance footage 17
4.4 Safe 19
4.5 Safety at work 20
4.6 Fire systems 22
4.7 Bank systems (card, e-banking, mobile banking) 25
4.8 Bank equipment 25
4.9 Safety signage 266
4.10 Human security and global security 27
4.11 Importers 28
4.12 Biggest companies in the security sector 288
1 A few numbers on Croatia
On July 1st, 2013, the Republic of Croatia became the 28th member of the EU. This event is a break point to the path of the country in the following years.
Croatia is a country of 4 429 000 inhabitants. It is a democracy whose official language is Croatian, but many people speak English (49%) and other foreign languages, mainly German (34%) and Italian (14%). The capital is Zagreb. Other main cities are Osijek, Rijeka and Split.
Croatia had a GDP growth of 2.9% (Q3 2016).
In 2017, the economic activity should accelerate mildly, up to 2.1 percent. For 2017, the IMF expects an increase in inflation by 0.8 percent. The estimate of this year’s surplus in Croatia’s current account should slip to 2.2 percent.
Unemployment is relatively high and, according to official sources, reached 14.8% of the workforce in December 2016. Despite government efforts to stimulate employment with various programs of incentives for employers, the level of unemployment remains a significant social and economic burden. Although this indicator is worthy to mention that Croatia has a high skilled and educated workforce in different fields, e.g. in ICT it is well known for having a good and competitive background.
The national money is the Kuna (HRK). The average monthly paid off net salary is 5 676 Kuna HRK (760 euro), which represented a nominal increase of 0.1% and a real decrease of 0.4%, as compared to the first quarter of 2016. As compared to the same period of 2015, it showed a nominal increase of 1.2% and a real one of 3%.
Indicator / Months / Year / ValueGross domestic product, % real annual growth rates / q3 / 2016 / 2,9
Industrial production, % annual changes / 10 / 2016 / 1,8
Consumer prices, % annual changes / 10 / 2016 / -0,5
Producer prices, % annual changes / 10 / 2016 / -2
Retail trade, % real annual changes / 10 / 2016 / 5,3
Tourism - night stays, % annual change / 9 / 2016 / 11,5
Consolidated central government balance, HRK million, ESA 2010 / 2015 / -10.706
Consolidated central government balance, % of GDP, ESA 2010 / 2015 / -3,2
Average monthly net wage, HRK / 9 / 2016 / 5,624
Unemployment rate, % eop / 10 / 2016 / 14
Number of registered unemployed persons / 10 / 2016 / 225,703
Average exchange rate EUR/HRK / 10 / 2016 / 7,5
Average exchange rate USD/HRK / 10 / 2016 / 6,8
Average exchange rate CHF/HRK / 10 / 2016 / 6,89
Export of goods, EUR million (cbs) / 8 / 2016 / 927
Import of goods, EUR million (cbs) / 8 / 2016 / 1,568
Current account balance, EUR million / q2 / 2016 / 152,2
Current account balance, % of GDP / q2 / 2016 / 4,6
External debt, eur billion, eop / 8 / 2016 / 43,672
External debt, % of GDP / 6 / 2016 / 97,3
Public debt, % of GDP, ESA 2010 / 2014 / 85,1
Official international reserves, EUR million, eop / 10 / 2016 / 12,993
Money (M1), HRK million, eop / 10 / 2016 / 78,783
Total credits, HRK million, eop / 10 / 2016 / 259,746
Deposits with commercial banks, HRK million, eop / 10 / 2016 / 207,261
2 Economic overview of Croatia
Croatia is included in the group of countries with small and open economies, which are largely connected to other foreign markets. The priority of Croatia’s economic policy is the continuation of making stabile and strong market - oriented economy which is competitive in the global market, constant reinforcement of macroeconomic stability and the continuation of structural reforms for the purpose of securing stabile and sustainable economic growth, increase in production, especially import and increase in employment. The particular emphasis is on creating a favorable business environment harmonized with the business environment prevalent in the European Union, further development of market economy, stimulation of private investments, promotion of international competitiveness, and entrepreneurial and market freedom. In terms of primary goals of economic policy of the Republic of Croatia, a special position is given to foreign investments which are very important for the future development of the country and further restructuring and modernization of the economy. Basic economic goals include export growth, quality standards introduction, meeting ecology requirements and achieving expenditure efficiency. One of the primary goals of the economic policy of Croatia’s government is to create a stimulating business environment, harmonized with the standards used in the EU and countries with developed market economies. The basic features of Croatia’s economy are industry, agriculture, forestry, fishing industry and food, drink, tobacco production, construction, transport, communication and trade.
Croatia is mostly an exporter of transport equipment, machinery, textiles, chemicals, foodstuffs and fuels. On the other hand, Croatia is an importer of machinery, transport and electrical equipment, fuels and lubricant and foodstuffs. Croatia mainly exports to Italy, Bosnia and Herzegovina, Germany, Slovenia, Austria and Serbia.
The Croatian economy accelerated in Q1 2016, on the back of strong private consumption and fixed investment. According to the latest high-frequency data, the good economic momentum will likely be carried over into Q2, steadily supported by strong consumer spending, as evidenced by the increase in retail sales in both April and May. Croatian households are giving impetus to economic activity, sustained by increased disposable income and the falling unemployment rate.
Moreover, the fiscal deficit more than halved in the first five months of 2016 compared to the same period last year, and both exports and imports increased. Croatia’s economy expanded 0.6 percent on quarter in the second quarter of 2016, the same pace as in the previous period.
GDP Growth Rate in Croatia averaged 0.35 percent from 2001 until 2016, reaching an all time high of 4.20 percent in the first quarter of 2008 and a record low of - 3.70 percent in the first quarter of 2009. GDP Growth Rate in Croatia is reported by the Croatian Bureau of Statistics.
The most important sector of Croatian economy is services with tourism accounting for 20 percent of GDP. The industry, although declining in recent years, is led by shipbuilding, food processing, pharmaceuticals and information technology. On the expenditure side, household consumption is the main component of GDP and accounts for 60 percent of its total use, followed by government expenditure (20 percent) and gross fixed capital formation (19 percent). Exports of goods and services account for 46 percent of GDP while imports account for 44 percent, adding 2 percent of total GDP.
Croatia is a member of the IMF, the European Bank for Reconstruction & Development and the World Trade Organization.
Source: http://www.tradingeconomics.com/croatia/gdp
http://www.focus-economics.com, http://www.mvep.hr, http://www.dzs.hr
3 The Security Sector in Croatia
3.1 Summary
Recent migrant crisis has established Croatia as an important transit country. Croatia is seen as a safe country and low crime rates prove that. Though there is a threat of organized crime expanding, especially smuggling. Croatian integration to EU (2013) and NATO (2009) helped Croatia boost an image of a country with stable environment and a leader for safety in the Balkan Region. Preparations for entering into the Schengen regime and the recent migration crisis boosted demand for safety and security equipment and services.
Market entry
The best way for Belgian companies to enter the Security and safety market is through distributors and agents. A list of important companies will be given in later paragraphs and it is essential that the Belgian exporters provide adequate servicing, spare parts, and components, as well as qualified personnel capable of handling service inquiries. Most of the local companies are fluent in English with good market knowledge. The market was standardized by European Union policy and now all security and safety equipment need to have CE mark or EU Certification before being launched in Croatia.
It is important for Belgian companies to do a thorough market research prior to contacting local agents and distributors. Moreover, the quality of potential agents is equally important for good penetration into the market.
Market trends
By entering the EU, the Croatian borders with Montenegro, Bosnia and Herzegovina and Serbia became the EU's new external border. Once a soft administrative line, now it separates villages and peoples who for generations shared a single state, easily crossing the border.
Croatia has not yet entered the passport-free Schengen Area. Despite that fact, border control is upgrading and modernizing.
Equipment has been modernized for the border police and a computer-connected border management system is installed at every border crossing. Three quarters of the funding came from EU's Schengen Facility Fund (120 million). Although the projects that were funded by that fund finished in 2016, additional border upgrades are expected before admission to the Schengen Area.
Current demand
There is a lot of room for expansion in safety market. For example, Zagreb already developed video surveillance on public places with 500 multifunctional cameras. Other Croatian cities should soon adopt the urban safety policy proposed by EU.
It is expected that other Croatian cities will establish broader surveillance systems in the following years. Furthermore, hotels, manufacturing facilities, shopping malls and infrastructural companies are among the largest video surveillance buyers in private sector. The Ministry of Interior, government related institutions and local municipalities are the most active buyers of security and safety equipment
3.2 Figures in security and safety market in Croatia
Entrepreneurs whose main activity is in sector 80 – Protection and investigation activities
Figures show that in 2014 there was an increase of business activity in comparison with 2013 with increase of 27.1 % in net profit. Of 153 entrepreneurs in this sector, 118 finished year with positive results while 35 finished with negative results during that period.
Table 1.
Basic financial results of entrepreneurs in sector Security and investigation activities in 2014.
Activity / Number of entrepreneurs / Number ofemployees / Incomes / Expenses / Consolidated financial results / Average monthly net salary
80.1 Activities of private safety / 116 / 12.932 / 1.154.882 / 1.095.299 / 43.679 / 3.060
80.2 Protection services with help of security systems / 28 / 134 / 47.226 / 45.505 / 1.054 / 4.260
80.3 Investigative activities / 9 / 10 / 3.767 / 3.106 / 505 / 3.453
80 Safety and investigative activities / 153 / 13.076 / 1.205.87 / 1.143.910 / 45.237 / 3.073
The largest contribution to the overall financial performance was given by entrepreneurs in sector 80.1 – Private security activities which employed 98.9% of employees and achieved 95.8% of total revenue.
The biggest company in this sector is Sokol Maric Ltd. who employees 3.500 people and has 304 million Kuna revenue.
Entrepreneurs in sector 80.2- Services of protection with Security systems had an increase of total revenue by 23.9%. The biggest profit in this sector was reported by ALARM KONTROLA d.o.o. from Zagreb.
Graph 1. Consolidated financial results of the entrepreneurs in the sector N and section activities (80) in 2014.
In sector 80.3 – Investigation activities – 9 entrepreneurs were active in 2014. and they had a positive year with a net profit of 505.000 kuna. Detective agency SHARK K.D. from Zagreb made the biggest profit in the observed group of activities with a total revenue of 680.000 kuna.
Table 2 - Basic financial results of entrepreneurs in section 80 - Security and investigation activities – by type of ownership.
Title / All properties in total / State / Private / Cooperative / Mixed2014. / Index / 2014. / Index / 2014. / Index / 2014. / Index / 2014. / Index
Number of entrepreneurs / 153 / - / 2 / - / 148 / - / 1 / - / 2 / -
Number of employees / 13.076 / 106,7 / 16 / 160,0 / 11.932 / 107,5 / 15 / 150,0 / 1.113 / 97,8
Total incomes / 1.205.875 / 106,5 / 2.526 / 149,7 / 1.109.290 / 107,5 / 876 / 198,3 / 93.184 / 95,0
Total expenses / 1.143.910 / 105,4 / 2.553 / 148,8 / 1.046.532 / 106,5 / 867 / 190,5 / 93.958 / 94,3
Profit of the period / 61.660 / 97,3 / 93 / 97,1 / 61.414 / 97,3 / 8 / - / 145 / 98,2
Loss of the period / 16.422 / 59,0 / 143 / 93,7 / 15.323 / 58,3 / 0 / 0,0 / 956 / 71,0
Profit or loss of the period / 45.237 / 127,1 / -50 / 87,9 / 46.091 / 125,1 / 8 / - / -811 / 67,7
Average monthly net salary per employee / 3.073 / 98,8 / 5.207 / 130,2 / 3.048 / 99,0 / 2.170 / 162,6 / 3.328 / 96,8
Figures show that the most companies in security sector are private - 96%. In public sector there are 2 companies (ATON d.o.o. and VIR ZAŠTITA d.o.o.). In a mixed sector there are also 2 companies – AKD ZAŠTITA and LUČKA SIGURNOST, while in the cooperative property there is one company – ZAŠTITA PRETORIJANSKA GARDA.
Entrepreneurs in the private sector achieved a net profit of 46 million (an average of 311.000 $ per company) while companies in the state and mixed ownership reported net loss.
Table 3. Top 10 entrepreneurs by total revenue in 2014, in the section activities 80 - Security and investigation activities.
Rank income 2014. / Rank income 2013. / OIB / Company name / Total income / Number of employees / Profit or loss of the period1. / 1. / 11543074213 / SOKOL MARIĆ d.o.o. / 304.485 / 3.508 / 24.067
2. / 2. / 33679708526 / SECURITAS HRVATSKA d.o.o. / 163.527 / 2.194 / 2.896
3. / 4. / 35596498125 / KLEMM SIGURNOST d.o.o. / 98.583 / 918 / 15.437
4. / 3. / 09253797076 / AKD ZAŠTITA d.o.o. / 90.058 / 1.076 / -956
5. / 5. / 68580128211 / BILIĆ-ERIĆ d.o.o. / 84.602 / 1.049 / 3.147
6. / 6. / 44190545321 / ADRIATIC SECURITY d.o.o. / 42.310 / 456 / -4.743
7. / 9. / 74364236410 / Salon bankarske opreme Ozimec d.o.o. / 23.516 / 37 / 1.217
8. / - / 77306500476 / SIGURNOST d.o.o. / 21.981 / 321 / 648
9. / 8. / 68204597981 / ZAŠTITA-ZAGREB d.o.o. / 21.371 / 302 / 28
10. / - / 69887535922 / ALZAS ALARMS d.o.o. / 18.967 / 204 / 1.068
Total / 869.400 / 10.065 / 42.809
All entrepreneurs activities in section 80 (NKD 2007) in total / 1.205.875 / 13.076 / 45.237
Data on financial results show that the first ten entrepreneurs have achieved 869 million Kuna of total revenue (72% of whole income of section 80 – Security and investigation activities) and employed 77 % of the total number of employees in the section.