Montenegro’s proposed foreign direct investment screening mechanism comes as the country seeks to strengthen the business environment for investment that generates employment, increases productivity and supports long-term economic growth, according to economic analyst Mirza Mulešković.
The government has proposed legislation that would establish formal screening of foreign direct investment, with the stated purpose of protecting national security and strategic economic interests while bringing Montenegro’s framework into line with European Union standards.
Under the proposed system, investors would be required to submit information on their ownership structure, ultimate beneficiaries, sources of financing, business activities and expected project effects. The Ministry of Economic Development would have 45 days to decide whether an investment requires a more detailed assessment. Mulešković supported the introduction of the mechanism but said its effectiveness would depend on implementation and stronger institutional capacity.
Foreign investment has had a significant impact on Montenegro’s economy over the past two decades, but Mulešković said its structure has deteriorated in recent years, with the majority of capital directed towards property. He said EU membership could increase both the volume and quality of foreign investment, provided Montenegro establishes predictable regulations and efficient public administration. Mulešković also called for greater investment in productive sectors, including agriculture, information technology, energy and sustainable tourism. He said the investment-screening process should operate under transparent and equal rules, with assessments focused on the risks associated with individual projects rather than the country of origin of investors.
