During a recent conference on Montenegro’s legal framework, foreign investments, and strategic goals, several experts raised concerns about risks linked to the government’s recent bilateral agreement with the United Arab Emirates (UAE). Professor emeritus Časlav Pejović highlighted that by exempting the UAE from applying Montenegro’s Public Procurement Law, the government potentially exposed the country to claims from investors in any nation with which Montenegro has similar bilateral agreements containing most-favored-nation clauses, such as Serbia or the Netherlands. He noted that companies could register abroad and still claim foreign investor status to challenge the state.
Milka Tadić-Mijović from the Center for Investigative Journalism (CIN) pointed out that since Montenegro regained independence, most foreign investments have come from countries with different foreign policy priorities. Only four out of ten countries contributing over 14.6 billion euros were EU members. Much of the investment has gone into real estate, which makes up over half of foreign direct investments, while sectors promoting sustainable development and economic diversification received less attention.
Dr. Nina Drakić of the Montenegrin Chamber of Commerce stressed that the origin and sectoral allocation of investments are often unclear, and domestic investment growth is crucial for economic stability. She emphasized the need for a stable, predictable business environment aligned with modern market standards and adequate incentives for priority sectors.
Dr. Gordana Đurović from the University of Montenegro noted that European investors hesitate to invest due to unclear and inconsistent rules. She suggested strengthening domestic industrial production and standardizing bilateral agreements to introduce international protections for the state while promoting fair competition.
Experts also discussed issues with “paper” companies registered abroad, investment filters, public interest tests, and the need for transparency in contracts involving state assets, concessions, and long-term obligations. Miloš Vuković of Fideliti Consulting stressed that strategic projects must include domestic labor, regional balance, and clear oversight mechanisms.
Dr. Mladen Grgić, former head of Montenegro’s Investment Agency, criticized the government for bypassing public procurement regulations and allowing investors through strategic investment laws without clear safeguards. Justice Minister Bojan Božović highlighted that prolonged legal procedures discourage foreign investors and emphasized upcoming reforms, including potential ratification of the Singapore Convention on Mediation.
Finally, Jovana Janjušević from the Center for Protection and Study of Birds warned that despite having strategic plans and documents, the state often fails to implement them effectively. She noted that direct allocation of state assets without tenders creates significant opportunities for corruption and announced that a constitutional review of the UAE agreement had been submitted.
