Mohamed Alabbar, the founder of Eagle Hills and a significant player in global real estate investment, has announced that the Eco Village Šas project in Montenegro is progressing into its next phase. This transition marks a shift from the conceptual design stage to actual implementation, with preliminary steps already initiated.
Located near Ulcinj, the Eco Village Šas project has completed its design phase and is now awaiting final permits and planning approvals before construction can commence. Alabbar indicated that the typical duration from design finalization to construction initiation is approximately one year, assuming there are no regulatory delays. This timeline suggests that construction could realistically begin between 2026 and 2027, aligning with investment trends in large-scale coastal tourism developments across the Adriatic region.
The Eco Village Šas is envisioned as an eco-tourism and high-end mixed-use destination. The development plans include sustainable accommodation units, wellness and hospitality infrastructure, as well as recreational facilities that integrate nature. These features reflect a growing trend towards environmentally sustainable tourism assets that are increasingly appealing to international investors targeting Mediterranean markets.
Alabbar views Montenegro as a promising investment landscape, describing it as a “safe place for investment” with essential characteristics for successful projects. He emphasized the country’s combination of natural beauty and underdeveloped infrastructure as key factors driving investment interest. Montenegro is perceived as a premium tourism market with limited high-quality offerings, a low-tax euroized economy, and potential benefits from its pre-EU accession status.
However, Alabbar pointed out significant infrastructure challenges, particularly in transport connectivity—highlighting the need for improvements in ports, airports, and road networks. The success of large-scale real estate projects often hinges on simultaneous public infrastructure investments, creating a dependency between private developers and government execution capabilities.
Financial prudence is central to Alabbar’s strategy. He emphasized maintaining strict financial discipline and low leverage in project financing. Eagle Hills is projected to distribute $2.4 billion in dividends by 2026, indicating robust liquidity and long-term capital planning. This approach suggests that future developments will be primarily equity-driven rather than reliant on heavy debt financing, which could mitigate execution risks associated with speculative development models.
The strategic focus on Ulcinj is notable due to its status as one of the last largely undeveloped coastal areas in the Adriatic. Previous proposals linked to Alabbar’s investments have included plans for extensive resort complexes and mixed-use tourism zones capable of accommodating thousands of guests across multiple sites. This positions Ulcinj as a potential area for expansion following the success of established luxury destinations like Porto Montenegro and Luštica Bay.
The move into execution for the Eco Village Šas project carries significant macroeconomic implications for Montenegro. Large tourism investments typically generate substantial capital expenditure flows during construction, create long-term employment opportunities in hospitality and services, and stimulate demand for local suppliers and contractors. Past projects associated with Alabbar have created hundreds of jobs across various sectors, demonstrating the economic multiplier effect of such developments.
Moreover, these projects aim to extend Montenegro’s tourism season beyond summer months, transitioning the country into a year-round destination—a crucial strategy for enhancing revenue per visitor.
Despite these positive developments, execution risks remain prevalent. Large coastal projects often face scrutiny regarding environmental protections, urban planning transparency, and alignment with local communities. Previous discussions around potential developments in Ulcinj have highlighted tensions between large-scale investments and environmental preservation efforts, particularly concerning sensitive areas like Velika Plaža.
Alabbar’s commitment to advancing the Eco Village Šas project signals confidence in Montenegro’s ability to attract global capital amidst geopolitical uncertainties. Investors are increasingly focused on political stability, long-term tourism demand fundamentals, and available land for development. Montenegro’s capacity to engage high-profile developers indicates its competitive position within the Mediterranean investment landscape, particularly within luxury and eco-tourism sectors.
As preparations move forward from concept to execution for the Eco Village Šas project, it will be essential for public sector capabilities to align with private sector ambitions to fully realize these investments’ potential economic benefits.
