Despite accelerated economic growth and announced reforms, foreign investors believe that Montenegro’s business climate has not improved. The MFIC Ease of Doing Business Index remains at 6.5, unchanged for the fourth consecutive year. While telecommunications, banking, manufacturing, energy and trade recorded progress, tourism — the country’s most important economic sector — was the only one to decline, which the Montenegrin Foreign Investors Council (MFIC) considers a serious warning for the state.
These are the key findings from the newly published White Book – Investment Climate in Montenegro 2025, presented yesterday by MFIC.
Investor assessments
MFIC Executive Director Arijana Nikolić-Vučinić explained that the White Book consists of four chapters offering a comprehensive overview of Montenegro’s business environment.
The first section outlines how international institutions — such as the EU, EBRD and World Bank — assess Montenegro’s economy. The second presents the perspective of national institutions, including the fiscal strategy for 2024–2027 and the macroeconomic and fiscal policy guidelines for 2025–2028.
The third chapter features the MFIC Ease of Doing Business Index, which again stands at 6.5, matching last year’s value. MFIC members also rated the overall business environment with an average score of 6.3. The difference, Nikolić-Vučinić explained, is that the MFIC index is a sector-weighted measure, while the 6.3 rating reflects a general perception of the environment. Since the values are very similar, she concluded that foreign investors view the business climate as relatively uniform.
Telecommunications received the highest sector score — 7.2 — unchanged for four years. Banking improved to 7.0, while tourism declined by 0.2 points, now standing at 4.3, the lowest among all sectors. Manufacturing and energy rose to 6.1, marking the third consecutive year of improvement. Trade increased by 0.3 points, whereas transport stagnated due to lower ratings for infrastructure capacity.
Out of 15 economic parameters assessed, nine improved, two declined and one remained unchanged. Human capital rose slightly to 5.6, though still below its 2022 level of 6.3. The rule-of-law index increased by 0.3 points. This year, MFIC also introduced three new indices: public administration efficiency, regulatory framework and innovation and technology transfer — with public administration receiving the lowest score of 4.8.
The White Book includes a table of 56 recommendations from the previous edition. Institutions responded to 40 of them: three were fully implemented, three saw no action and 34 registered partial progress. Fourteen new recommendations were added this year, along with a list of the ten most positive reforms and the ten most urgent barriers requiring government attention.
Business environment and investor outlook
“No one understands the business environment better than the business community itself. Compromise and continuous dialogue are the only way forward,” Nikolić-Vučinić said, emphasizing the importance of foreign investors in Montenegro’s development. Creating a stable and predictable environment, she stressed, is essential for long-term planning.
Investor participation in policymaking improved this year, with the index rising from 6.1 to 6.6, although the overall level of engagement remains unchanged. “If we want fewer barriers and more predictability, we must continue strengthening this partnership,” she concluded.
MFIC Board member Branko Mitrović of One Montenegro praised Montenegro’s GDP growth over the past 15 years, urging the business community to work boldly toward further development. He noted that the telecommunications sector is now at the level of the EU average.
Economic citizenship and investment climate
Board member David Margason (Porto Montenegro) underlined that the now-ended economic citizenship program temporarily influenced the company’s development trajectory, enabling rapid implementation of major infrastructure projects — particularly during the economic downturn of the pandemic. He noted increased positive communication with the government in recent years, though some expectations, such as airport concessions, remain unfulfilled. Margason criticized the removal of VAT-refund options for real-estate investments but acknowledged that strong sector growth has partially offset the negative effect.
He warned that Montenegro remains insufficiently visible on international markets, especially in digital promotion, calling for stronger cooperation between the state and the tourism industry. He also observed that despite higher arrival numbers, stays are shorter and traditional tourist groups are diminishing. Looking ahead, he said he hopes to see a “Montenegro Inc.” model, where each institution works toward shared national goals and competitiveness.
Continued reforms and EU integration
Board member Vasilis Panagopoulos (Jugopetrol) stated that Montenegro has made significant progress in improving the business environment, particularly through alignment with EU standards and the digitalization of public administration. Such reforms, he said, contribute to clarity, predictability and responsible long-term investment. Although some opportunities were missed due to slower implementation, he believes Montenegro is “very close to EU membership” and that the best period lies ahead.
He expects a more stable and predictable environment that will benefit both existing and future investors. Strengthening cooperation between business and government, he added, will be crucial for achieving shared objectives.
In a video message, MFIC Board member Remon Zakaria (EBRD) highlighted the White Book’s value as a tool for identifying key challenges and opportunities affecting Montenegro’s business climate. He emphasized that the publication plays an important role in shaping policies that support Montenegro’s EU accession path, in close cooperation with European partners.
