After decades of communism and years of war, Sarajevo's economy has been subject to reconstruction and rehabilitation programs. Amongst other economic landmarks, the Central Bank of Bosnia and Herzegovina opened in Sarajevo in 1997 and the Sarajevo Stock Exchange began trading in 2002. The city's large manufacturing, administration, and tourism base, combined with a large informal market, makes it one of the strongest economic regions of Bosnia and Herzegovina.

The Holiday Inn, Sarajevo, 1983, architect Ivan Straus. Its distinctive color and location has made the building iconic.

While Sarajevo had a large industrial base during its communist period, only a few pre-existing businesses made the successful transition to the capitalist economy. Sarajevo industries now include tobacco products, furniture, hosiery, automobiles, and communication equipment. Companies based in Sarajevo include B&H Airlines (Formerly Air Bosna), BH Telecom, Bosmal City Center, Bosnalijek, Energopetrol, Sarajevo Tobacco Factory, and Sarajevska Pivara (Sarajevo Brewery).

Sarajevo has a strong tourist industry and was named by Lonely Planet the 43rd Best City in the World in 2006. Sports-related tourism uses the legacy facilities of the 1984 Winter Olympics, especially the skiing facilities on the nearby mountains of Bjelašnica, Igman, Jahorina, Trebević, and Treskavica. Sarajevo's 600 years of history, influenced by both Western and Eastern empires, is also a strong tourist attraction. Sarajevo has hosted travellers for centuries, because it was an important trading center during the Ottoman and Austria-Hungarian empires. Examples of popular destinations in Sarajevo include the Vrelo Bosne park, the Sarajevo cathedral, and the Gazi Husrev-beg's Mosque.