Montenegro may be small on the map and modest in economic scale, but foreign investors increasingly view it as one of the region’s more accessible and investor-friendly jurisdictions. New data for 2024 confirms this trend: the number of companies with at least 50% foreign ownership rose by 12%, reaching 956 firms — up from 851 the previous year. Their collective value-added climbed to approximately €554 million.
This growth is not only statistical. It signals a qualitative shift in the composition of Montenegro’s economy.
For years, foreign investment in Montenegro has been heavily concentrated in real estate, resorts, and tourism-linked ventures. While these sectors still dominate, the latest numbers show broader diversification into categories such as professional services, IT outsourcing, engineering, and small-scale manufacturing. Investors from Serbia, Turkey, Russia, Western Europe, and the Middle East remain active, though the composition of new firms suggests rising interest from companies looking to use Montenegro as a regional or EU-gateway base — especially given the country’s use of the euro.
A major driver of this expansion is regulatory alignment. As Montenegro progresses through the EU accession process, foreign investors perceive decreasing regulatory risk. Company-law reforms, VAT alignment, and improvements in customs administration create a business environment that mirrors EU standards more closely than most Western Balkan states.
Another factor is demographic and geographical: Montenegro’s tourism economy attracts tens of thousands of long-stay foreign residents, freelancers, and entrepreneurs who often convert residency into business activity. Whether through micro-enterprises, consultancies, yacht-service companies, or digital-sector startups, these individuals contribute to the expanding landscape of foreign-owned businesses.
Yet the trend also raises strategic questions. Local experts warn that value-added remains modest in many sectors dominated by foreign ownership. In other words, many foreign-registered firms generate turnover but not necessarily lasting industrial capacity or productivity spillovers. To capture more value, Montenegro must encourage investment in higher-skilled domains: digital engineering, renewable energy, green-tech design, maritime services, and tourism infrastructure management.
Nevertheless, the 12% jump is a strong signal that Montenegro’s attractiveness is rising. The challenge ahead is the strategic utilisation of this foreign activity. If integration between foreign capital, Montenegrin firms, and local workforce development remains weak, the country risks becoming an administrative base rather than an innovation base. The right policy frameworks — combined with emerging EU membership prospects — will determine whether Montenegro becomes a regional centre for business services, engineering, and investment management in the coming decade.
