Before Iran escalated to direct missile strikes against Israel and Gulf states, it frequently targeted its adversaries in cyberspace. One of the clearest – yet underreported – examples occurred in 2022, when Iranian state-linked hackers launched a crippling attack on Albania. The cyberattacks shut down government systems and compromised sensitive data. Tirana responded by severing diplomatic ties with Tehran.
A Shared Adversary
For Israeli policymakers, this dynamic is familiar. Iran routinely employs a hybrid warfare strategy – blending cyberattacks, disinformation, and proxy aggression – in its efforts to weaken Israel. Albania’s experience demonstrates that even small European states can become targets of the Khomeini regime.
From Security to Economic Cooperation
At the municipal level, Albania’s capital – Tirana – has played a particularly important role in deepening ties. Tirana’s mayor, Erion Veliaj, has actively promoted Albania as an attractive destination for Israeli investment and business. At the 2023 Tirana–Tel Aviv Technology Week, he highlighted the presence of dozens of Israeli firms in the capital and branded Tirana “the Tel Aviv of the Balkans.”
The Hidden Risk: Weak Rule of Law
Despite the economic opportunities, Albania presents a serious risk that Israeli investors cannot ignore: the fragility of its judicial system.
For investors, this is not an abstract issue. Legal predictability is the foundation of cross-border business. When the authorities can detain individuals – especially political or economic actors – without conviction for extended periods, it raises questions about the country’s rule of law culture, and what that means for contract enforcement, property rights, and due process.
The Case of Erion Veliaj
This brings us back to Mayor Veliaj, who has been entangled in his country’s judicial system. Albania’s Special Structure against Corruption and Organized Crime (SPAK) has held him in pre-trial detention for over a year, despite his three consecutive electoral victories. Consequently, the Tirana Municipal Council nearly removed him from office, stopped only by Albania’s Constitutional Court, which ruled that his involuntary detention does not justify dismissal. While that decision offers some reassurance, cautious investors may still worry about the casual use of prolonged detention without conviction.
A Key Link Between Tirana and Tel Aviv
Economically, Veliaj saw Israeli investment as essential for his country—a conviction he translated into TEDA and the ADC project. Yet as ADC prepares to move forward with construction, SPAK continues to insist on his detainment.
Detention Without Conviction: A Strategic Liability
Veliaj’s case highlights a risk that may deter even the Israeli investor, despite their reputation for calculated risk-taking in volatile markets. While Israeli firms are often willing to operate in challenging environments, arbitrary detention practices introduce a level of uncertainty that can outweigh potential rewards
Albania and Israel have developed a strong partnership; common risks and shared economic gain will do that. However, Albania’s judicial practices risk undermining that progress. Aligning its legal system more closely with European and Western norms may prove essential – not only for securing investor confidence but also for sustaining its deepening ties with Israel.
Ms. Eva Kelmendi is an Albanian-born analyst based in the UK, with experience working alongside civil society organisations focused on the Balkans and Eastern Europe. Her work centres on governance, political freedoms, and institutional accountability, with particular attention to democratic standards and the rule of law. She holds an MA in Human Rights from University College London (UCL).