Mohamed Alabbar, a prominent figure in real estate development and founder of Emaar Properties, has drawn attention to Montenegro’s tourism sector, emphasizing its significant potential for growth. He noted that Montenegro boasts more coastline than Dubai yet attracts a fraction of the tourists, suggesting that the country is missing out on substantial economic opportunities rather than facing inherent limitations.
This commentary comes at a pivotal time as Montenegro seeks to attract large-scale foreign investments, particularly from Gulf nations. Alabbar advocates for a more aggressive approach to development, proposing that the Adriatic coastline be transformed into a high-density, high-value tourism destination.
Montenegro’s coastline includes valuable areas such as Velika Plaža, Budva Riviera, Bay of Kotor, and Luštica, which remain underutilized compared to global standards. For instance, Velika Plaža features over 12 kilometers of largely undeveloped beachfront, presenting what investors refer to as rare “greenfield coastal inventory” in Europe.
Despite these natural advantages, the country has historically welcomed around 2 million visitors annually. While this figure is strong relative to its population size, it falls significantly short when compared to major global tourist destinations and the potential suggested by its extensive coastline.
Alabbar attributes this disparity not to a lack of demand but rather to execution challenges. He argues that Montenegro has yet to fully industrialize its tourism model. Key infrastructure limitations—particularly in airports, highways, and large-scale resort capacity—continue to hinder visitor numbers. Additionally, fragmented planning and regulatory uncertainties slow project implementation. Alabbar has specifically called for new airport infrastructure and improved connectivity as essential steps for scaling tourism.
This perspective aligns with recent agreements between UAE and Montenegro aimed at facilitating large-scale tourism and real estate projects potentially worth billions of euros. These agreements are designed to streamline project execution through direct negotiations and long-term land leases, thereby reducing development timelines compared to traditional European processes.
However, this rapid investment model has raised concerns among domestic stakeholders and European observers. Critics argue that expedited investment frameworks could bypass standard procurement processes and planning safeguards, potentially distorting competition and undermining environmental protections. This concern is particularly relevant for projects in ecologically sensitive areas like Velika Plaža, which is home to diverse plant and animal species and remains one of the last large undeveloped coastal zones in the Adriatic.
The ongoing debate encapsulates a tension between swift capital deployment and regulatory compliance. On one side is the “Dubai model,” characterized by high-density coastal developments driven by significant investors aiming to maximize visitor numbers and asset values. Conversely, a more measured approach focuses on sustainability and careful spatial planning to preserve natural resources as long-term economic assets.
Montenegro’s current tourism landscape reflects elements from both models. Coastal regions like Tivat have developed into luxury micro-markets with high-end offerings such as Porto Montenegro, attracting ultra-high-net-worth visitors with nightly rates ranging from €300 to €800. In contrast, destinations like Kotor operate under strict heritage regulations that prioritize pricing power over volume growth.
A critical gap remains in the middle segment: large-scale integrated resorts capable of significantly boosting visitor numbers while maintaining price differentiation. Gulf investors view Montenegro as one of the last European coastal markets where such developments can still be executed at scale.
The macroeconomic implications are considerable; tourism is a cornerstone of Montenegro’s economy, contributing significantly to GDP and foreign exchange earnings. Doubling or tripling visitor numbers could have direct effects on the current account balance, employment rates, real estate valuations, and fiscal revenues. Conversely, failing to capitalize on this potential may result in underutilization of valuable natural assets.
Alabbar’s comparison with Dubai illustrates a broader economic philosophy: while Dubai’s coastline is fully integrated into a financialized system encompassing aviation hubs and large-scale real estate development, Montenegro operates within a fragmented framework where infrastructure and investment strategies have yet to align into a cohesive growth plan.
The future trajectory of Montenegro’s tourism sector hinges on its ability to attract significant capital while ensuring compliance with EU standards, protecting environmental assets, and balancing short-term growth with long-term value preservation.
