Montenegro’s economic citizenship program has proven to be a significant driver of economic development, with its potential extension offering the possibility of billions of euros in foreign direct investments. This, in turn, could further accelerate the development of the country’s tourism infrastructure, particularly in the northern regions. According to Aleksandra Drašković, Director and Owner of Montenegro Properties, the program has already contributed over 500 million euros to the country and facilitated the construction of 15 high-category hotels, creating more than 1,000 new jobs.
Long-term Economic growth
Drašković highlighted in an interview with Pobjeda that many wealthy clients and high-profile investors from around the world are eagerly awaiting the program’s renewal to invest in state-approved development projects. She estimates that a reactivation of the program could potentially lead to a 20-30% increase in Montenegro’s GDP, underscoring the long-term benefits of such initiatives for small countries like Montenegro and Malta. These programs allow small nations to attract credible investors through rigorous background checks and high standards, creating a win-win situation for both sides.
“As of 1997, no high-category hotels were built in northern Montenegro. However, since the launch of this program, 15 hotels with four- and five-star ratings have been constructed, with a total capacity of 1,000 rooms, creating over 1,000 jobs. The newly built hotels will bring renowned international hotel brands like Swissotel, InterContinental, and SIRO by Kerzner, which in turn enhances investor confidence,” Drašković said. She emphasized that these projects could not have been realized without the economic citizenship program, especially within such a short timeframe.
Boosting Montenegro’s appeal
Drašković believes that reviving the economic citizenship program would further enhance Montenegro’s economic development, especially in light of recent European Union decisions and Malta’s successful program. She pointed out that the European Court of Justice has affirmed Malta’s sovereign right to grant citizenship, opening the door for Montenegro to follow suit. The program would operate with stringent background checks and due diligence, ensuring only credible applicants without criminal backgrounds.
Malta, since 2014, has raised over 1.5 billion euros through its economic citizenship program, highlighting the substantial financial benefits of such initiatives. “Investment citizenship programs provide an injection of liquidity for any country, especially small ones like Malta and Montenegro. They allow states to harness a relatively new source of sustainable revenue, reducing the need to rely on taxation or further borrowing,” Drašković explained.
Northern Montenegro’s development
The previous program played a key role in rapidly developing the northern part of Montenegro and diversifying its tourism offerings. Drašković noted the positive impact on the country’s GDP growth during the program’s implementation, which demonstrates the potential benefits of reactivating the initiative. “If the program is reintroduced, it could generate between 20-30% growth in GDP,” she said.
She also pointed out that such programs contribute to the development of the country by increasing GDP, boosting tourism, and improving infrastructure. The construction of new hotels also has a multiplicative effect, leading to additional investments in the region.
Rigorous standards for quality investments
Drašković emphasized that the success of these programs relies on careful implementation with strict standards. “If such programs are conducted for genuine investment purposes, with thorough background checks and due diligence procedures, they can attract highly credible investors. These investors buy property in projects approved by the government, and there is no risk of mass applications or a dominant impact on real estate prices,” she said.
She clarified that Montenegro has not had a “golden passport” program, but rather an economic citizenship program, which differs from other programs, such as those in Spain. This distinction, Drašković argued, ensures that the program remains focused on attracting high-quality investments that benefit the country in the long term.
Long-term implications for Montenegro’s development
Drašković also discussed the long-term benefits of the program, particularly in the context of Montenegro’s European Union accession. “These programs can bring ‘know-how’, new knowledge, innovations, and technologies to Montenegro, accelerating the country’s development and making it a more attractive member of the EU family. Moreover, it helps Montenegro become a more appealing destination for investors, offering a favorable tax system, a stable legal framework, and attractive returns on investment,” she said.
She highlighted that many wealthy clients from Montenegro Properties, including institutional investors, are waiting for the program to resume so they can invest in the government-approved projects that will help drive the country’s growth.
Importance of continuity
Drašković also stressed the importance of continuity and completing the program’s goals. “Unfinished projects have never delivered the expected results. Of the 2,000 planned applications, only 1,000 were approved. To truly capitalize on the potential of this program, it needs to be reactivated so that the projects can be fully realized and new projects can begin,” Drašković concluded.
Conclusion
The potential for Montenegro’s economic citizenship program to boost the country’s economy through foreign investment is substantial. By attracting high-profile investors and promoting large-scale infrastructure and tourism projects, the program can continue to drive Montenegro’s growth, offering long-term benefits for the country while creating a stable, attractive environment for international investors.
