In 1989, the Romanian economy was on the verge of disaster. The communist regime
has left behind a hyper centralised system, total absence of private initiatives,
low productivity, outdated, polluting and energy wasting technologies, a destroyed
infrastructure and oversized labour force with " proletariat dictatorship" mentality.
The starting point in solving all these problems was the development of the market economy.
The industrial restructuring, the privatisation of the state owned companies
and attraction of foreign investments played an important role in this painful
and long process. Among the "victims" of transition towards the market economy
we can find factories of long tradition (UTA - textiles, ARIS - tool-machines).
Though privatised, the former food industry enterprises undergo a severe decline
(meat and milk processing, sugar production).
Despite these failures, after 1989, due to the opening and active involvement
of the local public administration and Chamber of Commerce in the economical development
policies and their commitment in attracting foreign investments, the city of Arad
develops above national average.
The successful privatisation of several important factories (Astra Vagoane -railcars-overtaken
by Trinity Industries Inc., USA, Arbema -brewery, overtaken by Brau Union AG, Austria), the
investments in new industrial factories by attracting foreign and domestic investors has
contributed to the economical restart of the city. A reason of these successful endeavours
in the city is its strategic geographical location. The city of Arad is the main entrance
gate in Romania coming from the European Union and the most important trans- European road
and rail transportation junction in western Romania, included in the 4th Pan-European
Corridor linking Western Europe to South-Eastern European and Middle East countries.
Another element of attraction is the extended infrastructure, the qualified labour
force and the rich industrial tradition. Not in the least we have to mention the
successful implementation of the project.
Chamber of Commerce, Industry
Arad Economical Development Zone promoted by the Arad Chamber of Commerce Industry
and Agriculture in partnership with the local public administration.
The project includes the set up of the Arad Industrial Zone and Logistic Centre, the Cargo
Terminal at the Arad International Airport, the Arad International Fair and Arad
Free Zone - Curtici. A part of this project, respectively the Arad Industrial Zone
and Free Zone Arad-Curtici have already been achieved while the other objectives
are in an advanced stage of completion.
The Arad Industrial Zone has been inaugurated in 1999, covers a surface of 15 sqm and
up to the first half of year 2001, production and storage facilities have been erected
for 10 companies. The amount of utilities and infrastructure investments exceeds 1.5 million USD
and over 2000 jobs have been created.
We must mention as well the two projects for construction of residential areas,
"Western District" and "Subcetate" with a capacity of over 1000 houses and apartments.