Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Privatization and Investments Even though Montenegro has a good investment climate, a series of tenders for state-owned companies recently failed partially due to negative media campaigns. Previous experiences with direct foreign investment and privatization, such as with the Aluminum Plant in Podgorica, with the Iron Plant in Nikšić and with the attempt to agree on a long-term lease for Valdanos near Ulcinj, all show that Montenegro simply has not yet managed to find reliable partners. Also it has been proven that public doesn’t fully undurstend importancy of FDI’s for country development. Despite all of these issues, the Government of Montenegro has recently released a series of tenders which are expected to be successful.
Investments Turkish Capital Entering Montenegro Airlines and Montenegro’s Airports The Montenegrin Ministry of Transport and Maritime Affairs made an announcement that the introduction of Turkish capital into Montenegro Airlines and into Montenegro’s airports is now very certain. According to the government, during a very difficult period for airline carriers, this option is a much better solution than privatizing the national airline company. A draft agreement with Turkey on improving cooperation with Montenegro is currently being prepared. The agreement will include statements that clarify that a tender has not been announced in relation to investment being made in the national airline by interested Turkish companies, but rather that the deal is a combination of commercial service contracts made with airports in Podgorica, Tivat and Berane.
Qatari Diar Plans Hilton Hotel in Montenegro The ownership of the Montenegrin “Blue Horizon” Hotel complex, which was until recently owned by the state company HTP Primorje, has been transferred to the Arab investment group, Qatari Diar. It has been announced that the new owner plans to demolish the existing hotel and build a five-star hotel as part of the Hilton hotel chain. The complete investment costs will amount to approximately € 200 million; the new complex should comprise about 170 apartments and villas, with supporting sport, recreation and entertainment facilities. The new owners are not ready to inform the public about their plans until the procedures regarding spatial planning documents have been completed.
UniCredit Wants to Operate in Montenegro Italian businessmen are interested in investing in the Port of Bar (especially in the container terminal), in renovating the railway and also possibly in participating in the project concerning the construction of the motorway between Bar and Boljare. This was announced after a meeting between the Montenegrin Minister of Finance and the Italian Ambassador in Podgorica. The Italian Ambassador also announced that the banking group UniCredit is interested in operating in Montenegro and that some of their representatives will visit the country at the end of October.
Montenegro and UAE Look to Boost Investments Prime Minister, Igor Lukšić, and UAE Economy Minister, Sultan bin Saeed Al Mansouri, said at their recent meeting that Montenegro and the United Arab Emirates seek to promote excellent political ties through several economic agreements that would boost further investment, Minister Al Mansouri underlined that Montenegro, in his view, is a unique and extraordinary country. He expressed his view that it has excellent potential for further development and added that UAE entrepreneurs, some of whom accompanied him at the meeting in Podgorica, are interested in developing further investment projects in Montenegro. PM Lukšić said that the Government of Montenegro is creating the right preconditions for new investment in Montenegro’s economy and development through reforms, infrastructure development and by building a good business environment. He also added that in addition to already successful projects in tourism, the two countries could develop good investment cooperation in the areas of agriculture, industry and banking. The two officials also discussed the need to improve transport connections between Montenegro and UAE by introducing charter-flights between Podgorica and Dubai.