Despite a 13% increase in foreign direct investment (FDI) in Montenegro in 2024 compared to the previous year, investment levels remain significantly below those recorded in 2022, according to a new report by the Foreign Investors Council. The main concern is not the volume of investment but its structure—productive sectors are receiving less attention, while real estate dominates.
The analysis, presented by Council Chairman Tamaš Kamaraši and authored by economic analyst Mirza Mulešković, covers FDI trends from 2018 to 2024. In 2021, over 31% of FDI was directed toward the banking sector and real economy, but this dropped to just 12.8% in 2024. Meanwhile, investment in real estate has surged—a trend that, while welcome, does not contribute equally to long-term economic development.
The report identifies internal challenges such as political instability, frequent and unpredictable legal changes, lack of strategic investment planning, and weak institutional efficiency as key obstacles. Global factors like inflation, geopolitical tensions, and economic slowdowns also play a role.
One major issue is the absence of a comprehensive system for tracking FDI by sector. Montenegro remains one of the few countries in the region without a reliable mechanism for mapping investment flows across sectors.
The Council stresses that a detailed sectoral classification of FDI would provide insights into which parts of the economy attract investment and which are being neglected. Such data would also enable better comparisons with other countries in the region and help identify areas for improvement in Montenegro’s investment climate.
