The Danish queen made the statement while making a toast at the dinner, given for her and her husband Prince Henrik by President Josipovic and his wife Tatjana.
The Danish royal couple arrived in Croatia earlier in the day for a four-day visit during which they will also visit the northern town of Koprivnica and the coastal city of Split.
Croatia has a lot to offer, as does Denmark. I am confident this state visit will contribute to making their cooperation even closer, said Queen Margrethe II.
President Josipovic said in his toast that he considered the royal couple's visit an expression of Denmark's true sympathies for Croatia and a clear sign of a lasting friendship and understanding.
A big business delegation arrived in Croatia along with the Danish royal couple and on Wednesday they will attend a Croatian-Danish business forum to be opened by Prince Henrik and President Josipovic.
Croatia is the biggest market in the region for Danish exporters and investors, the Danish queen said, adding that representatives of 32 Danish companies and organisations were in the delegation accompanying her.
She was hopeful that many Danish companies would use the business potential in the country and contribute to creating new jobs and to growth. There is vast unexplored potential for cooperation in many areas such as health, food, IT and green technologies, Queen Margrethe II said at the dinner that was also attended by Parliament Speaker Josip Leko and his wife, several government ministers, business people, and figures from the cultural and scientific communities.
President Josipovic said Croatia appreciated Denmark's direct investments in Croatia and hoped that the business forum to be held on Wednesday would help in the exchange of information and finding of opportunities for a closer economic cooperation.
The Danish queen and President Josipovic agreed that the two countries shared the same fate in the community of European nations and that as EU members they were faced with many challenges requiring the cooperation of all.
Queen Margrethe II said Denmark was aware of Croatia's role in the context of peace and stability as the EU's key goals because it wanted to see other Western Balkan countries join the EU as well and was helping them on that path with its experience.
Josipovic thanked Denmark for its significant support during the process of Croatia-EU membership talks.
The Danish queen and her host underlined historical ties between the two countries and Josipovic spoke of Denmark's contribution to the European and world cultural heritage, mentioning in that context writer Hans Christian Andersen, philosopher Soren Kierkegard, and film director Lars von Trier, while the Danish queen spoke of cultural, sports and business cooperation between Zagreb and Copenhagen.
The Danish queen said Croatia had been one of the most attractive tourist destinations for Danish tourists for many years.
Earlier in the day, Queen Margrethe II met with Parliament Speaker Josip Leko who informed her of the parliament's long history until the first democratic elections in 1990.