Connecting The Region 2024 no. 4

Connecting The Region

Dubai Eyes Investment in the Region

BIG CEE: Driving innovation and growth in the region

BIG CEE, a subsidiary of the renowned Israeli real estate group BIG Shopping Centers, continues to shape the future of retail and business development. After 30 years of success, the company has significantly expanded its portfolio, which now includes 18 active properties—15 in Serbia and 3 in Montenegro. By setting new standards for shopping centers and mixed-use assets, BIG CEE has played a pivotal role in attracting the international investors and reputable global brands, positioning the region as a prime destination for foreign investment and economic growth.

When discussing the fastest-growing markets in tourism and the economy, Montenegro plays a significant role. This vibrant country stands out as one of the most dynamic locations for investment, further highlighting the complementarity between BIG CEE's operations and the potential that Montenegro offers. In this context, BIG CEE is experiencing robust growth at the regional level, creating a synergy that enriches the narrative and provides readers with a broader perspective on the development of the company’s business.

In Montenegro, BIG CEE's presence is marked by two key assets in Podgorica: BIG Fashion and The Capital Plaza. These properties not only lead in the retail and business sectors but also hold dominant positions in their respective fields. Their success in attracting both domestic and foreign brands has significantly contributed to the development of Podgorica’s business climate. As drivers of economic growth, BIG centers have created numerous job opportunities, increased consumer spending, and stimulated the development of local infrastructure, further enhancing the overall economic ecosystem in the city. Since BIG CEE entered the Montenegrin market, significant investments have been made to develop and upgrade these assets. Moreover, the long-anticipated extension of BIG Fashion Podgorica is set to commence soon, marking a new chapter in the company's expansion.

BIG Fashion Podgorica

stands out as more than just a shopping center. It has become a hub of community engagement, merging retail with cultural and entertainment offerings. With its brand diversion, alongside events such as fashion shows and food festivals, the center provides a vibrant atmosphere that resonates with both residents and tourists. By enriching the social and economic fabric of Podgorica, BIG Fashion has become an essential part of the city’s everyday life.

The Capital Plaza,

with its architectural excellence and premium offerings, has set new benchmarks in the real estate and office space sectors. The complex includes upscale apartments, premium office spaces, and various retail outlets, as well as the number one rated hotel in Podgorica, establishing it as a prestigious address for both domestic and foreign businesses.

The presence of embassies, multinationalcompanies, and global organizations within The Capital Plaza underscores its importance as a high-level business center.

This development has significantly raised the expectations for exclusive real estate in Montenegro and has driven demand for prime properties.

The impact of BIG CEE’s investments in Montenegro extends beyond economic growth. Through the creation of jobs and the attraction of tourists and investors, the company’s assets are integral to the long-term, sustainable development of the local economy. BIG Fashion Podgorica and The Capital Plaza have not only transformed Podgorica’s retail and business landscapes but have also reinforced the city’s position as an attractive destination for global investors.

Building on its success, BIG CEE plans to continue its expansion in Montenegro with new developments in Nikšić and Radanovići. These upcoming projects will further strengthen the company’s footprint in the country, creating additional job opportunities and enhancing the retail landscape. Through its commitment to sustainable growth and community-driven initiatives, BIG CEE is setting the stage for a prosperous future, fostering innovation and economic development in the region.

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DIRECTOR & EDITOR-IN-CHIEF: Ana Novčić a.novcic@connectingregion.com

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TRANSLATION & EDITING: Pullen Editorial Marija Jurić

CONTRIBUTORS: Ljubica Gojgić, Milica Uvalić, Adriano Milovan, Armin Zeba, Dejan Azeski, Geri Kolgega, Idro Seferi, Branimir Jovanović, Zoran Panović, Milan Igrutinović, Maja Vukadinović, Nada Stojanović, Novica Mihajlović

PHOTOS: Zoran Petrović

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Tromesečno.

ISSN 3009-4380 = Connecting the Region COBISS.SR-ID 130142473

BRIDGING BUSINESS ACROSS ADRIA

Predrag Milutinović

Dipl.

Prokopije Perić

Jadar

At a Tortoise’s Pace

By Zoran Panović

The regional “team-building” circuit, featuring Europe’s motivational “life coaches,” continues to dole out familiar platitudes, encouraging the Western Balkans to keep dreaming of EU membership.

At the 19th Bled Strategic Forum, Serbia’s Prime Minister Miloš Vučević assured us that there’s no Plan B when it comes to joining the EU—he even referenced last year’s “Bled cream pie” prediction of 2030 as a target date.

Ursula von der Leyen, ever the optimist, reminded us at Bled that she wants a strong Europe, with Ukraine and the Western Balkans neatly bundled inside. Fast forward to October in Tivat, where another “team-building” event—this time the Brdo-Brijuni summit—saw regional leaders, including Serbia’s President Vučić, once again confirm the EU dream for the Balkans. Of course, there were some verbal scuffles, but hey, at least they agreed on Europe. Dubrovnik followed with the “Ukraine-Southeast Europe” summit, where Vučić reiterated the same tune—EU membership is just around the corner, this time with Ukraine also in the picture.

Finally, the cherry on top: the 10th anniversary of the “Berlin Process,” Angela Merkel’s fading initiative that Olaf Scholz is now attempting to revive. The Western Balkans receive EU support and funds, but

Ursula von der Leyen reminded us at Bled that she wants a strong Europe, with Ukraine and the Western Balkans neatly bundled inside

these summits are starting to feel like the crowds at the Belgrade Book Fair—giving the illusion of something bigger, like widespread reading. As the German media puts it, the Western Balkans are inching towards the EU at a tortoise’s pace.

Scholz said he hopes it won’t take another decade for the region to join, while von der Leyen assured everyone that EU enlargement is a top priority. But for those tired of waiting, this “encouragement” is starting to sound a lot like cynicism.

Austrian diplomat Wolfgang Petritsch, during the heyday of the Berlin Process, suggested that Europe should “emotionally accept” the Balkans to shed their negative connotations. Until that happens, the Western Balkans remain Europe’s “soft underbelly”—a security risk that won’t disappear until full membership finally arrives. ∙

Highlights

Western Balkan Leaders Sign Joint Declaration in Berlin

The leaders of the six Western Balkan countries signed a joint declaration at the Berlin Process summit, reaffirming good neighbourly relations and regional cooperation. Marking the 10th anniversary of the Berlin Process, the declaration emphasises dialogue and constructive approaches to unresolved bilateral issues. The summit was hosted by German Chancellor Olaf Scholz, and the declaration was signed by the leaders of Serbia, Montenegro, North Macedonia, Albania, Kosovo, and Bosnia and Herzegovina.

Montenegro’s Census Reveals Demographic Shifts

According to Montenegro’s 2023 census results, 41.12% of the population identified as Montenegrins, while 32.93% identified as Serbs. Bošnjaks make up 9.45% of the population, and Albanians represent 4.97%. Political analyst Đorđe Vukadinović noted that the gap between Montenegrins and Serbs has narrowed significantly since the last census in 2011. The number of Serbs has increased by 4%, while the number of Montenegrins has decreased by the same percentage.

Albania Opens EU Accession Talks

Albania has officially begun its journey towards EU membership by opening the first negotiating cluster – Fundamental Rights – during the first intergovernmental conference in Luxembourg. Cluster 1 covers areas such as justice, security, public procurement, statistics, and financial oversight. The speed of progress in this cluster will determine the pace of the entire negotiation process. In recent years, only Albania and Montenegro have made significant strides towards EU integration.

Celebrating 10 Years of the Berlin Process

German Chancellor Olaf Scholz hosted the 10th anniversary of the Berlin Process on 14 October. He stressed that the EU is complete only with the Western Balkans and urged regional leaders to focus on a peaceful and prosperous future, highlighting the importance of overcoming past conflicts. Scholz also praised the unblocking of the CEFTA free trade agreement, enabling other agreements like work permits and e-commerce routes.

First EU Growth Plan Funds for Western Balkans

The European Commission formally approved reform agendas for five Western Balkan countries: Albania, Montenegro, Kosovo, North Macedonia, and Serbia. Bosnia and Herzegovina’s reform agenda has not yet been approved due to incomplete documentation. The EU stated it would greenlight Bosnia’s agenda once the necessary revisions are submitted.

Leaders Sign Dubrovnik Declaration

The Ukraine-Southeast Europe Summit produced the Dubrovnik Declaration, condemning Russia’s invasion and supporting Ukraine’s EU integration. Held in Dubrovnik, it gathered regional leaders and Ukrainian President Volodymyr Zelensky. The declaration stresses that a peaceful Europe is impossible without a free and peaceful Ukraine and calls for the withdrawal of Russian troops.

Croatia Postpones Military Conscription

Croatia’s Defense Minister announced that military conscription, initially planned for January 2025, will be delayed due to political discussions, potentially starting after the upcoming presidential elections.

Highlights

Good Neighbourly Relations as Condition for EU Membership

EU Foreign Affairs Representative Josep Borrell met with Western Balkan leaders in New York, emphasising that their path to EU membership requires good neighbourly relations and dialogue. Borrell stated that Western Balkan countries are integral to Europe’s future and urged leaders to make bold decisions for progress on European integration.

Von der Leyen Gathers Western Balkan Leaders in Brussels

On 19 September, European Commission President Ursula von der Leyen hosted a working lunch with Western Balkan leaders. She stated that all six countries belong in Europe and emphasised the EU’s commitment to the region with a €6 billion growth plan.

U.S. Committed to Supporting Western Balkans

Aleksandar Kasanof, the new U.S. Deputy Assistant Secretary for the Western Balkans, emphasised the U.S.’ commitment to supporting all Western Balkan countries on their path to European integration and membership in Euro-Atlantic institutions. During his recent visits to Sarajevo, Belgrade, and Pristina, Kasanof highlighted the importance of regional economic cooperation and reforms for lasting peace and prosperity.

Local Elections in BiH Bring Few Changes

In Bosnia and Herzegovina’s local elections, major national parties retained control of most municipalities, but Sarajevo and Banja Luka remained out of their hands. In Banja Luka, Draško Stanivuković was re-elected as mayor, and in Bijeljina, Ljubiša Petrović retained his position.

Montenegro Cancels Agreement with the US

Montenegro notified the U.S. of its withdrawal from an agreement exempting U.S. citizens from the International Criminal Court’s jurisdiction. The cancellation was a condition for Montenegro’s EU progress and the closure of Chapter 31 on foreign, security, and defence policy.

Slovenia Chairs the

UN Security Council

Slovenia chaired the UN Security Council during the General Assembly debate in September. Slovenian Prime Minister Robert Golob acknowledged the Security Council’s challenges, stating its role remains critical but increasingly limited in conflict resolution.

Draško Stanivuković

Robert Golob

Highlights

Visa-Free Travel for Kosovo Serbs to the EU

On 13 October, visa-free entry to the EU for Serbs from Kosovo with Serbian passports issued by the Coordination Directorate took effect following a year-long process. This marked a significant change after Serbian citizens received visa-free access in 2009.

Kosovo* Representation in CEFTA

Kosovo* will now be represented by its officials in CEFTA (Central European Free Trade Agreement) meetings without the presence of the UN Mission in Kosovo* (UNMIK). Germany proposed a solution in which Kosovo’s name would include an asterisk to indicate its unresolved status. In exchange, Kosovo* has partially lifted the import ban on Serbian goods, with restricted entry through the Merdare border crossing.

Slovenia Among EU Countries with Lowest Inflation

In August 2024, Slovenia, along with Ireland and Finland, had one of the EU’s lowest inflation rates, at 1.1%. This contrasts with higher rates in countries like Romania (5.3%) and Belgium (4.3%).

The Euro’s Impact on Regional Economies

Tying regional currencies to the euro offers stability but poses potential risks to economic growth and competitiveness, particularly in developing economies

DEJAN ŠOŠKIĆ

Professor at the University of Belgrade’s Faculty of Economics

The monetary policies of the Adria region are intriguing because they reveal a unique blend of stability and vulnerability. With most countries informally or formally tying their currencies to the euro, questions arise about the long-term effects on trade competitiveness, inflation, and economic growth—particularly in economies that are still developing.

In this interview, Professor Dejan Šoškić, from the University of Belgrade’s Faculty of Economics, explores the benefits and potential risks of this strategy, offering a deeper understanding of how such policies shape the region’s future.

How has tying regional currencies to the euro benefited economies,

INTEGRATION NEEDS HARMONISATION

Regional integration has eased trade barriers, but true success lies in harmonising regulations and making cross-border cooperation smoother, particularly through initiatives like CEFTA

and what are the potential risks or misleading signals that could arise from this monetary policy, particularly for weaker economies?

— Yes, you are right. Most countries in the region have tied their currencies to the euro or have fully adopted it. This policy reduces currency risk, simplifying business calculations, especially when purchases and sales are often made in euros. Fixing the exchange rate benefits borrowers with foreign currency clauses, as their credit payments become predictable.

However, the dangers of fixing the exchange rate are often overlooked. A key risk is when tying the exchange rate to the euro is not accompanied by reducing inflation to eurozone levels. If the exchange rate is fixed while inflation is higher than in the eurozone, it leads to the so-called real appreciation of the domestic currency.

This real appreciation results in higher prices in euros for locally produced goods, making exports more difficult and reducing domestic competitiveness compared to imported goods. Such trends gradually erode competitiveness, lower growth rates, and increase public and private debt. In practice, this often leads to foreign direct investment favouring real estate and non-tradable services (e.g., banking and retailing) over production of tradable goods and services, while domestic manufacturing becomes too expensive compared to imports. Such policies

gradually reduce the space for competitive domestic entrepreneurship, especially in sectors crucial for economic development that rely on domestic raw materials and other domestic inputs.

The only way out is to boost productivity while keeping wage growth below productivity increases. Furthermore, a fixed exchange rate in conditions of higher inflation than in eurozone, artificially inflates GDP in euros beyond real rates of growth since it does not exclude nominal GDP growth due to local inflation, creating an illusions of higher growth and distorting debt ratios underestimating the level of indebtnes. The same applies to wages, which grow faster in euros than in real purchasing power, creating further illusions of economic success.

How do such policies affect intra-regional trade and competitiveness on the global market?

— The competitiveness of any national economy in the region declines whenever domestic inflation exceeds euro-

The only way out is to boost productivity while keeping wage growth below productivity increases

zone inflation under a fixed exchange rate without corresponding productivity growth. For exchange rate fixing to be sustainable, policymakers must understand what other economic measures need to be implemented. However, tying the currency to the euro simplifies regional trade and strengthens economic ties between businesses within the region.

Is it possible to pursue a monetary policy that is between the extremes of a fixed and freely floating exchange rate? What would be the advantages and risks of changing the current approach?

— For Serbia, a devaluation would certainly improve the competitiveness of the domestic economy and create conditions for higher GDP growth. However, given that little has been done to promote the use of the dinar in the financial system since 2012, and most loans are in euros, devaluation would lead to significant inflationary pressures and widespread difficulties in repaying loans. Unfortunately, this could have severe consequences for financial stability, both at the microeconomic (business and household) and macroeconomic levels. The inflation-targeting model, which was abandoned in 2013, is difficult to reinstate without risking inflation and financial stability.

Which policies would enhance competitiveness in highly euroised mar-

EURO TIES RISK COMPETITIVENESS

Tying currencies to the euro simplifies business and stabilises the economy, but it risks undermining competitiveness, especially when inflation rates diverge from the eurozone

kets, and should they be sought in the monetary sphere or elsewhere?

— The solution, in my view, lies in increasing productivity. This can be achieved through greater investments in tradable sectors of the economy (manufacturing, agriculture, energy, export services) and significantly improving education and healthcare. Education and public health are vital for workforce productivity, and investments in advanced technologies can raise this workforce’s position in the value chain. Unfortunately, what we see in Serbia is the opposite—low investment in education, science, and health, with high investment in non-productive projects (e.g., stadiums, etc.).

In former Yugoslavia, there was often resistance to products from other republics. How effective have regional integration efforts like CEFTA, Open Balkan, and EU policy

have largely benefited elites and foreign investors?

— Harmonising tax policies, investment incentives, environmental standards, and institutional reforms would improve the region’s negotiating position with potential investors. A fully unified regional market would attract higher-quality foreign investments, particularly benefiting smaller countries of the Region.

What tools do governments in the region have to support domestic companies that have managed to compete globally but were long ignored by policy?

harmonisation been in overcoming these barriers, and which initiative do you see as the most successful?

— The international community has tried to foster regional cooperation with limited success. I believe regional countries themselves must take the initiative to simplify trade and increase cooperation. Simplifying border procedures, harmonising regulations and policies, and duty-free trade are key to boosting economic growth in the region, as was the case with the Benelux and Scandinavian countries some time ago. We all need to realize that a larger, harmonised regional market gives each country a better chance to accelerate growth.

What realistic synergies could closer regional economic cooperation bring, and is it possible to reverse the current ‘race to the bottom’ strategies of lowering taxes, wages, and worker protections that

— Companies that have already succeeded in exporting have often overcome their greatest development hurdles. However, cheaper and more accessible financing for export-oriented projects should be systemically supported. Quality education, stronger institutions, and state financial mechanisms (e.g., credit guarantees) for export projects should be a priority for all regional countries.

Given the trends of deglobalisation and the resurgence of industrial policy, what would be appropriate policies to stimulate domestic industries?

— The region could seize the opportunity presented by nearshoring and friend-shoring trends, positioning itself as a reliable supplier of raw materials, semi-finished, and finished products to the EU. This requires a full understanding that human resources (well-educated and healthy workers) and institutional development (competence, impartiality, rule of law) are the key levers for accelerating economic growth in the region. ∙

FOCUS ON PRODUCTIVITY GROWTH

For long-term growth, the region must focus on productivity, education, and sustainable investments rather than relying solely on currency ties or non-productive projects

Deepen Trade and EU Ties

Strengthening Bonds: Slovenia and Serbia Discuss Trade, EU Integration, and Future Cooperation

Slovenia’s Deputy Prime Minister and Minister of Foreign and European Affairs

TANJA FAJON

Slovenia and Serbia, two countries with a shared history and close ties, continue to deepen their cooperation across various sectors. From cultural connections to strong economic partnerships, the relationship between these two nations has flourished over the years.

Whether it's trade, business ventures, or regional stability, Serbia

Fajon, recently reaffirmed her commitment to strengthening this partnership. Following discussions with Serbian Foreign Minister Marko Đurić during his official visit, Fajon spoke about the dynamic relationship between the two nations and how it continues to grow. “Slovenians and Serbs have a lot in common,” Fajon reflected, emphasising how prominent Slovenians have made signifi-

Trade between the two countries now exceeds €2 billion

and Slovenia have always found ways to work together while respecting their differences. Their shared past, as part of the former Yugoslavia, provides a unique foundation for collaboration as they both look toward the future, especially in terms of Serbia's European Union ambitions.

Against this backdrop of ongoing cooperation, Slovenia’s Deputy Prime Minister and Minister of Foreign and European Affairs, Tanja

moment to accelerate Serbia’s progress. "We support Serbia’s efforts to open Cluster 3 under the Hungarian Presidency of the EU Council, and I hope we will see positive steps this year,” Fajon said, expressing Slovenia’s optimism about Serbia’s path to EU integration.

The economic ties between Serbia and Slovenia are also something to celebrate. Trade between the two countries now exceeds €2 billion, and Slovenian companies play a major role in Serbia’s economy, with 1,500 firms employing over 25,000 people. Fajon and Đurić agreed to keep building on this positive trend by planning joint government meetings and even exploring the possibility of hosting an investment forum to further boost economic cooperation. Scientific collaboration was also dis-

1,500 Slovenian companies operating in Serbia employ over 25,000 people

cussed as both sides look to deepen their cooperation in innovation.

Of course, no discussion between Serbia and Slovenia would be complete without addressing the long-standing succession issues stemming from the breakup of Yugoslavia. Fajon emphasised that, two decades after the Agreement on Succession Issues came into force, it's high time to resolve the remaining matters, particularly in relation to cultural heritage and archives.

cant contributions to Serbian society.

For her, the historical bonds between the two nations serve as a strong foundation for moving forward.

Fajon and Đurić’s talks touched on several key topics, not least of which was Serbia’s journey toward European Union membership. Slovenia has long been a vocal supporter of EU enlargement, especially toward the Western Balkans, and Fajon reiterated that this is a crucial

“It’s time to bring this to a successful conclusion,” she stated, stressing the importance of regular dialogue on these issues.

In conclusion, the relationship between Slovenia and Serbia continues to grow, grounded in mutual respect and a shared vision for the future. Whether it's on the economic front or in Serbia’s pursuit of EU membership, both countries seem committed to strengthening their ties and working together to achieve common goals. ∙

Dubai Eyes Investment in the Adria Region

H.E. Mohammad Ali Rashed Lootah Highlights Key Sectors for Dubai-Adria Economic Collaboration

H.E. MOHAMMAD ALI RASHED LOOTAH President and CEO of Dubai Chambers

In an exclusive interview with The Region, H.E. Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, discusses the promising prospects for economic cooperation between Dubai and the countries of the Adria Region.

As a global business hub, Dubai is poised to foster growth in key sectors such as logistics, tourism, and infrastructure. With ongoing initiatives to enhance business relations through trade missions and partnerships, Lootah outlines how Dubai can contribute to and benefit from the region’s dynamic markets while offering valuable advice to businesses from the Adria Region seeking to expand into Dubai and the UAE.

How do you view the potential for economic cooperation between Dubai and the countries of the Adria Region?

— The potential for economic cooperation between Dubai and the Adria region is substantial. Dubai’s strategic location as a global business hub, coupled with continuing steady economic growth across the Adria region, creates multiple opportunities for collaboration.

At Dubai Chambers, we aim to facilitate these opportunities by providing businesses and investors from Dubai and countries across the Adria region with tailored market insights, business-matching services, and sector-specific guidance.

Which industries across the Adria Region do you see as the most attractive for investment from Dubai, and are there any standout markets within the region?

— The Adria region serves as a key logistics corridor between Central

Europe, Southeast Europe, and Asia. Investments in ports, transportation networks, and logistics hubs are growing, presenting opportunities to leverage Dubai’s expertise in these areas.

Other key sectors for investors in Dubai include tourism and hospitality, technology, renewable energy, and agriculture.

Are there any ongoing or planned initiatives by the Dubai Chamber to simultaneously promote business relations with multiple countries in the Adria Region?

— Dubai Chambers continuously engages with markets across the Adria Region through bilateral business forums, trade missions, and MoU agreements.

Our recent trade mission to Serbia brought 13 Dubai-based compa-

COLLABORATION

nies operating in diverse sectors to uncover opportunities for partnerships and business growth. We arranged 180 B2B meetings in Belgrade to promote cooperation between companies from Dubai and Serbia. Dubai Chambers also signed an MoU with the Chamber of Commerce and Industry of Serbia (CCIS). The agreement will enhance collaboration in arranging trade missions, conferences, and business events, as well as the sharing of knowledge and expertise to support growth and innovation.

We look forward to engaging in more impactful events in the region to further strengthen economic ties and promote cross-border opportunities.

What are the primary factors Dubai investors consider when exploring business opportunities in the diverse markets of the Adria Region?

Dubai Chambers signed an MoU with the Chamber of Commerce and Industry of Serbia. The agreement will enhance collaboration in arranging trade missions, conferences, and business events, as well as the sharing of knowledge and expertise to support growth and innovation

CORRIDOR

The Adria region serves as a key logistics corridor between Central Europe, Southeast Europe, and Asia. Investments in ports, transportation networks, and logistics hubs are growing, presenting opportunities to leverage Dubai’s expertise in these areas

— Dubai investors prioritise several factors when exploring opportunities in the Adria Region, including the ease of doing business, market stability, and access to a skilled talent pool. In addition, there is a focus on sectors that align with Dubai’s economic priorities, such as sustainable tourism, tech-driven innovation, and renewable energy projects.

At Dubai Chambers, we assist by providing Dubai-based businesses and investors with in-depth analysis and market insights, ensuring they are well-prepared to navigate the business landscape in the region and capitalise on emerging opportunities.

The Adria Region is known for its tourism potential. How do you see Dubai’s businesses contributing to or benefiting from the tourism and hospitality sectors across the region?

— Dubai’s businesses, particularly in hospitality and real estate development, can contribute significantly to the Adria Region’s tourism sector by investing in resort developments, eco-tourism projects, and tourism infrastructure.

Dubai’s experience in creating world-class tourism hubs positions our investors as valuable partners for developing high-quality and sustainable tourist destinations in the region.

Dubai-based tourism operators and travel agencies can also collaborate with their counterparts in the Adria Region to create integrated travel packages, boosting the flow of tourists between the regions.

What advice would you give to businesses from the Adria Region looking to expand into Dubai and the UAE market?

— Dubai’s position at the crossroads of Europe, Asia, and Africa ensures convenient access to regional and global markets. Our strategic location is complemented by a business-friendly approach and supportive regulatory environment that enable the emirate to serve as a gateway for global growth.

At Dubai Chambers, we are committed to supporting businesses from the Adria region with leveraging the emirate’s competitive advantages throughout every stage of their expansion into Dubai and the wider region.

Dubai International Chamber, one of the three chambers under the umbrella of Dubai Chambers, currently operates 31 international offices around the world. This network stands ready to assist businesses from the region with expanding not only into Dubai and the UAE, but globally.

Given Dubai’s vast experience in large-scale infrastructure projects, do you see opportunities for collaboration in infrastructure development across the Adria Region?

— Dubai’s expertise in large-scale infrastructure and urban development projects can be of great value to the Adria Region. There is strong potential for partnerships in developing smart cities, transportation networks, and sustainable urban infrastructure, leveraging Dubai’s best practices in these areas.

Dubai Chambers can facilitate business matching and strategic alliances between the emirate’s leading construction firms and real estate developers in the Adria region, ensuring mutual growth and the exchange of knowledge and expertise. ∙

Dubai downtown

Nearshoring and Decarbonisation Could Transform the Western Balkans

The latest study reveals that nearshoring is indeed occurring across the Western Balkans, that it aligns closely with the decarbonisation trend and that these developments can benefit local companies and the region as a whole

By Branimir Jovanović Economist at the Vienna Institute for International Economic Studies (wiiw)

When the Covid-19 pandemic disrupted global supply chains, many anticipated that it would accelerate a shift towards nearshoring. The expectation was that multinational companies, having recognised the risks of concentrating production in distant, low-cost locations, would start relocating some operations closer to home, thus shortening their supply chains.

In a study published three years ago by the Vienna Institute for International Economic Studies (wiiw), it was predicted that this trend would lead to increased investment in the Western Balkans – as a region situated close to Western Europe that offers a skilled labour force and relatively low production costs. In the new wiiw study entitled Transforming the Western Balkans

through Nearshoring and Decarbonisation, the institute reassesses these predictions with the benefit of hindsight1.

WHAT WAS DONE IN THIS STUDY?

The study aimed to do three things: firstly, evaluate whether nearshoring has occurred in the Western Balkans and identify specific examples; secondly, explore how it can be aligned with ongoing decarbonisation efforts; and thirdly, examine the implications of the two megatrends of nearshoring and decarbonisation for local companies and how they might foster greater cooperation between local and foreign firms.

To achieve this, we conducted a quantitative analysis of macroeconomic data on FDI inflows to the region, ex-

amined case studies of recent investment projects and drew insights from interviews with investors and from surveys of both international and local companies operating in the region.

ARE WE SEEING SOME NEARSHORING?

Our quantitative analysis of post-pandemic FDI inflows across the six Western Balkan economies suggests that three of them (Bosnia and Herzegovina, Kosovo and North Macedonia) are likely experiencing nearshoring. We draw this conclusion because FDI inflows in these economies between 2020 and 2023 consistently exceeded the long-term equilibrium values simulated by the econometric models we used (Figure 1). In contrast, Albania and Serbia show no evidence of

1 This study was jointly prepared by the Vienna Institute for International Economic Studies, the Western Balkans 6 Chamber Investment Forum, the Chamber Partnership Western Balkans and chambers of commerce from Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia

nearshoring, despite still having very strong FDI inflows, with actual FDI inflows falling below simulated values. The results are inconclusive when it comes to Montenegro: while FDI inflows exceeded expectations between 2020 and 2022, they fell in 2023.

FIGURE 1 / ACTUAL FDI INFLOWS VS FDI INFLOWS GIVEN BY THE MODELS (% OF GDP)

In addition to this, our case study analysis of recent investment projects revealed that all six Western Balkan economies have attracted significant foreign investments, many linked to either nearshoring or decarbonisation. Major investments in the manufacturing sector, motivated by nearshoring, have been observed in Albania, Bosnia and Herzegovina, Kosovo, North Macedonia and Serbia. Some of these investments have come from Asian companies seeking proximity to European markets. Major renewable energy projects have additionally been identified in Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia.

WHAT DO THE COMPANIES SAY?

The interviews we conducted with foreign investors confirmed that many of them are coming to the region motivated by nearshoring options, as a response to the challenges exposed by the pandemic and recent geopolitical events, such as the war in Ukraine. These interviews also highlighted the growing importance of environmental sustainability and decarbonisation to international companies – not just because of regulatory requirements, but also because of consumer expectations. The survey of foreign companies that have invested in the Western Balkans indicated that the primary reasons for investing in the region are its favourable geographical position, skilled labour force and relatively low wages. On the other hand, poor governance, weak institutions and inadequate infrastructure were identified as the main challenges. Satisfaction lev-

els are high, with 72% of respondents stating they were satisfied or very satisfied with their overall experience of operating in the region. Moreover, twothirds of these foreign companies indicated they would increase their investments if improvements were achieved in terms of decarbonisation.

The survey of local companies revealed that two-thirds were familiar with the concept of decarbonisation. Many companies have a positive view of decarbonisation and recognise that investing in new technologies to reduce emissions could improve their chances of exporting to the EU. However, respondent companies were also clear that financial support would be essential to reduce their carbon footprint effectively.

WHAT COMES NEXT?

In order to capitalise fully on the opportunities presented by the global nearshoring trend, policymakers must exert some efforts. Previous recommendations – like improving governance, strengthening institutions and enhancing infrastructure – remain essential, as foreign companies often cite these as major obstacles. Additionally, investing in renewable energy and decarbonisation is crucial, as progress in these areas could attract more foreign investment. This would also help local companies by increasing their appeal to foreign partners. They are keen to adopt new technologies to reduce their carbon footprint, but they require financial assistance. By addressing these challenges, the Western Balkan region can indeed transform itself.

Note: The orange areas show the range of equilibrium FDI inflows provided by the models, while the grey line shows actual FDI inflows. If the grey line is above the orange area, we interpret that as a sign of nearshoring. Source: wiiw calculations, using data sourced from wiiw FDI and Annual databases.

Western Balkans on the Path to Sustainable Growth

The Western Balkans are showing signs of growth and resilience, with sectors like tourism and remittances rebounding, yet challenges from COVID-19 and inflation persist as the region seeks to attract foreign investment and foster long-term economic expansion

IVAILO IZVORSKI

Chief Economist for the Europe and Central Asia, World Bank

he Western Balkans stand at a critical juncture, needing to attract foreign technologies, capital, and expertise to drive stronger economic growth and achieve high-income status. While economic

STRATEGIC

The Western Balkans remain very attractive to foreign investors because of their proximity, good connectivity to European markets

forecasts for the region have slightly improved, it’s unclear whether this marks a long-term recovery from COVID-19 or reflects short-term trends.

Ivailo Izvorski, Chief Economist for Europe and Central Asia at the World Bank, highlights both recovery signs— like the tourism rebound and remittance growth—and the lingering challenges, cautioning that the region’s aggregate GDP remains below pre-pandemic trends.

With the recent forecast showing a slight improvement in economic growth for the Western Balkans, do you view this as a sign that the region is finally overcoming the effects of the COVID-19 crisis, or is it driven more by short-term economic fluctuations?

— The region is recovering from the overlapping shocks of recent years. We indeed expect modestly faster growth in the Western Balkans this year and next compared with our projections from June 2024. The pace of economic expansion in the Western Balkans will likely strengthen from 2.6 per cent in 2023 to 3.3 per cent this year and further to 3.7 per cent on average in 2025-26. This compares with the average growth rate of 3.5 per cent from 2000-19. The shocks from COVID-19 and inflation have not yet been fully overcome, both in the Western Balkans and the EU. This year, aggregate GDP in the Western Balkans will likely

be about half a percentage point below its pre-pandemic trend.

On the upside, tourism and remittances, one of the key drivers of growth in the Western Balkans, show signs of a robust rebound from the COVID-19 pandemic. For example, international tourist arrivals dropped by 70 per cent in 2020 and were 36 per cent higher in 2023 than in 2019. Remittance inflows amounted to almost $14 billion in 2023, or up by 34 per cent compared to 2019.

What are the key factors, aside from the crisis, that are holding back regional economies? How effectively have they tackled the root causes of slow growth, and what progress have they made in overcoming the challenges to accelerating convergence with the EU?

— The Western Balkans need to sustain progress in growth-enhancing reforms, build up human capital, and facilitate private sector investment. For example, structural reform should address distortions to market competition created by the remaining stateowned enterprises, build education systems that can produce the quality human capital and skills demanded by firms, improve the governance of public sector institutions, and fill gaps in critical infrastructure, such as transportation and digital connectivity. These reforms will help address the issues of high unemploy-

ROBUST

ment rates, especially among youth, and low workforce participation rates of women. Climate change adaptation and mitigation investments are also needed to address the growing risks of extreme heat, floods, and air pollution.

While closer integration with the EU is a natural path for these economies politically and economically, could the current slowdown in Europe and the broader decline in European productivity pose risks to the region’s growth?

— The European Union and the Western Balkans are closely interlinked, with the EU accounting for over 70 per cent of the Western Balkans’ exports. The EU is also a major source of remittances and tourism. Some countries in the Western Balkans are also integrated into European manufacturing supply chains. As a result of these intense and tight connections, slower growth in the EU is a negative risk for Western Balkans countries. However, growing EU integration and the benefits of future EU accession need to be considered. For example, all the countries that joined the European Union since 1990 are now high-income economies (e.g., Bulgaria, Croatia, Poland, Romania) thanks to their access to the EU markets, alignment of institutions and regulations, and large inflows of capital and structural funds. The EU is al-

Net Foreign Direct Investment (FDI) inflows amounted to about 6 per cent of GDP on average in the Western Balkans in 2023

ready providing substantial financial support for reforms in the Western Balkans. Further progress along the EU accession path should help catalyse additional private investment.

Generally speaking, can the region’s economies continue relying on strategies like attracting foreign investment, or is this approach becoming outdated? How effectively have countries in the region been able to foster domestic investors to grow into a significant pillar of their national economies?

— The countries in the Western Balkans need to bring in additional foreign technologies, capital, and ex-

pertise to support stronger economic growth. This “infusion” of foreign technologies and knowledge is essential for reaching high-income status. Rather than an “old strategy,” this integration into global markets and global value chains is the triedand-tested process of growing faster and better.

Net Foreign Direct Investment (FDI) inflows amounted to about 6 per cent of GDP on average in the Western Balkans in 2023. Though smaller than 10 per cent of GDP prior to the 2008 Global Financial Crisis, FDI is a far more important source of capital for the Western Balkans than for the Europe and Central Asia region as a whole or

for East Asia and the Pacific on average, where net FDI inflows were less than 2 per cent of GDP and about 0.5 per cent in 2023, respectively.

The Western Balkans remain very attractive to foreign investors because of their proximity, good connectivity to European markets, and ongoing European integration. A post-pandemic surge in nearshoring, or the relocation of production closer to the EU, also benefits the Western Balkans. However, many local firms still struggle to grow and take advantage of the regional and global supply chains because of their small size, shortages of talent, and constraints in accessing financing. ∙

CONVERGENCE

The EU provides significant financial support for reforms in the Western Balkans, with further progress on the accession path expected to attract more private investment

Corporate Pulse

Timo Pleyer

Takes the Helm as Director of AHK Croatia and BiH

Pleyer assumed position on 15 October 2024. He previously headed the Procurement Competence Centre at the Southern African-German Chamber of Commerce and Industry and, in 2023, served as the delegate for AHK Nigeria.

Saša Marković

Takes Helm as General Manager of Coca-Cola HBC Serbia and Montenegro

Marković stepped into the role after leading Coca-Cola HBC Bulgaria, where he played a key part in driving the company’s growth and success. He succeeds Svetoslav Atanasov, who will transition to a new role within the Coca-Cola HBC system.

Hrvatska Poštanska Banka Wins

Prestigious

Zlatna Kuna Award for 2023

Hrvatska Poštanska Banka (HPB) has been awarded the Zlatna Kuna, the prestigious accolade presented by the Croatian Chamber of Economy (HGK), recognised as the most successful bank in 2023. The 28th award ceremony took place on 10 October 2024 at the Croatian National Theatre in Zagreb. HPB has become one of the key domestic credit institutions in Croatia.

United Airlines Expands

Dubrovnik-New

York Seasonal Flights for 2025

United Airlines has announced a major expansion of its seasonal service between Dubrovnik, Croatia, and New York/Newark, starting in 2025. The airline will begin operations earlier than previous years, with flights starting 2 May 2025. Previously operating four times a week, the service will run daily throughout the summer, pending government approval.

Pullman

Hotels & Resorts

Opens Its First Hotel in Croatia

Pullman Hotels & Resorts, the premium brand of the global hotel group Accor, has launched its first hotel in Croatia with the opening of Pullman Zagreb. It is located in the City Island business zone in Zagreb's Buzin area. This marks a significant milestone for the city’s hospitality scene, introducing a new level of premium accommodation to the market.

U.S. Brand Victoria’s Secret Set to Launch in Serbia and Slovenia

Victoria’s Secret, the renowned American lingerie and beauty brand, is set to open its first store in Serbia in May 2025. It will bring its full range of products, including cosmetics, lingerie, and swimwear, to the Ušće Shopping Center in Belgrade. The first store is scheduled to open in May 2025 at the Ušće Shopping Center in Belgrade, with plans to expand to Slovenia shortly after.

Zadar Airport Becomes Croatia’s First “Green” Airport

Zadar Airport has become Croatia’s first “green” airport, following the successful completion of a project aimed at electrifying and greening its aircraft acceptance, departure systems, and electrical power supply. Supported by EU funds under the National Recovery and Resilience Plan 2021-2026, the project aims to drastically cut greenhouse gas emissions while enhancing environmental standards in air traffic. The initiative sets a new standard for Croatian airports, pushing towards greener, more sustainable air travel.

BASF Celebrates 40 Years in Serbia

BASF celebrated its 40th anniversary in Serbia with a conference emphasizing the importance of innovation for advancing the Green Agenda and strengthening industrial competitiveness, while highlighting Germany’s role as Serbia's largest trading partner. The event highlighted the critical role of innovation in ensuring the continuity of the Green Agenda and enhancing the competitiveness of industries and societies at large. The event underlined that international economic cooperation is vital for industrial progress, particularly in advancing sustainability efforts.

Jernej Tovšak

Takes Over as CEO of Paloma

Jernej Tovšak replaced Stevan Lomić, who remains on the board alongside Marcus Schwier. Tovšak, previously a board member, takes over as the company continues under the ownership of the Slovak paper group SHP.

Nikola Vuletić

Takes Helm as President of Serbian Bankers Association

Nikola Vuletić, Chairman of UniCredit Bank Serbia’s Executive Board, has been appointed the new President of the Serbian Bankers Association (UBS) for two years.

Corporate Pulse

Laura Tyler

Elected New CEO of Adriatic Metals PLC

Adriatic Metals PLC has announced the appointment of Laura Tyler as the new Managing Director and Chief Executive Officer. Tyler, who joined the Adriatic Board as a Non-Executive Director, stepped in as Interim CEO in August 2024.

Gregor Jagodič

DOBA Faculty New Dean

DOBA Faculty of Applied Business and Social Studies in Maribor has appointed Associate Professor Gregor Jagodič as its new dean, effective 1 October 2024. Jagodič, an expert in entrepreneurship and innovation, steps into the role with a strong commitment to driving the faculty’s academic and research advancements.

Novi Sad Lands Major Investment Deal with Shanghai Giant

The factory, set to open next year, will employ 150 workers and produce vehicle chassis for the European market. The Mayor of Novi Sad, Milan Đurić, has signed an agreement with Shanghai Huizhong Automotive Manufacturing (SHAC) in Shanghai, marking the Chinese company’s first manufacturing facility in Europe. The deal aligns with Serbia’s broader push to attract foreign direct investment and strengthen its position in the automotive supply chain.

Energoinvest Delegation Holds Key Meetings in Montenegro

Delegation from Energoinvest d.d. Sarajevo, led by Director Mirza Ustamujić and the head of the company’s Montenegro office, Elvir Hodžić, held a series of important meetings with representatives of the Montenegrin Electricity Transmission System (CGES), Electric Power Induſtry of Montenegro (EPCG), and the Ministry of Energy of Montenegro.

U.S. Company Jabil Opens High-Tech Manufacturing Facility in Osijek

As the largest private investment in Osijek since Croatia’s independence, the facility is expected to create 1,500 new jobs in its first phase. The 47,938 square meter facility was completed over 15 months, with contributions from over 1,000 workers representing 140 companies.

GEN-I Launches 12 Megawatt Solar Power Plant in North Macedonia

Slovenian electricity group GEN-I has unveiled a 12 megawatt solar power plant in Kavadarci, North Macedonia, marking a significant step towards the region’s energy transition. The new plant, one of the largest in the country, is expected to generate up to 15,500 megawatt hours of energy annually.

Aspect Croatia Discovers Significant Gas Field Near Sisak

Aspect Croatia has announced the discovery of a gas field at the Trebarjevo-1 exploratory well, located roughly 10 kilometres southeast of Sisak. The company notified the Croatian Hydrocarbon Agency about the find, which lies within the SAVA-06 exploration block. This area covers parts of Zagreb County, as well as sections of Sisak-Moslavina and Koprivnica-Križevci counties, and the City of Zagreb.

Rimac Unveils Nevera R Hypercar on U.S. East Coast

Following a successful debut at The Quail, A Motorsports Gathering, Rimac Automobili has brought its all-electric hypercar, the Nevera R, to the East Coast of the United States. The Nevera R made a striking entrance with a high-profile showcase in New York’s iconic Times Square before continuing its tour to Long Island’s The Bridge classic car show.

Pavao Vujnovac

Joins Atlantic Council’s International Advisory Board

Pavao Vujnovac, founder of ENNA and PPD and majority owner of Fortenova Group, has been appointed to the Atlantic Council’s International Advisory Board. The Croatian businessman joins a distinguished group of former global leaders and executives who provide strategic guidance to the Washington-based organisation.

Enzo Smrekar

Elected President of AmCham Slovenia

Enzo Smrekar, Vice President of Atlantic Grupa for Gourmet Spreads, Donat, and Internationalisation, has been elected President of AmCham Slovenia following the organisation’s 25th annual general meeting. Smrekar will serve a two-year term as he takes the helm of the prominent business chamber.

Women Leading the Way in the Adria Region But Is Equality Still Elusive?

Despite women leading two countries, the Adria region still grapples with deep-rooted gender inequalities in politics, business, and pay

In the Adria region, where the leadership of two nations by women might signal progress, the deeper reality reveals an ongoing struggle for gender equality. Though women have risen to prominent roles, these successes often mask the persistent challenges that many still face across political, economic, and social spheres. The path to gender parity in the region is uneven, with structural barriers and cultural norms continuing to limit women’s opportunities for equal participation and recognition.

While the symbolic presence of female leadership offers hope, the region remains characterised by unequal pay, underrepresentation in top business and political positions, and cultural expectations that often stifle women’s voices in public life. The struggle for balance is not confined to boardrooms or parliamentary cham-

bers but extends to everyday experiences, as many women navigate societal pressures and professional hurdles simultaneously.

The 2024 Global Gender Gap report by the World Economic Forum casts a broader shadow over this issue. Globally, the report estimates that it will take an additional 134 years to close the gender gap at the current pace. For the Adria region, while some nations have made tangible strides, others continue to lag behind, hampered by entrenched norms, a lack of systemic support, and slow-moving policy changes. The disparity within the region itself is stark: while one country celebrates gains in education and political inclusion, others are still battling high gender pay gaps and limited access to leadership roles.

Against this backdrop, each country’s progress, or lack thereof, needs to be critically examined. For some, the future looks promising, with incremental reforms and growing public support for gender equity. For others, the road remains long and fraught with challenges, raising the question: can these nations truly bridge the gap, or will progress remain superficial, masking deeper issues beneath the surface?

In this overview, we will explore how each country in the Adria region is navigating the complex and often contradictory journey toward gender equality. From political leadership to workplace dynamics, the stories of these nations offer insight into the shifting—but still landscape for women.

A LONG ROAD AHEAD

For all the progress made, gender equality in the Adria region remains a work in progress. Each country tells its own story, with some advancing faster than others. But one thing is clear: the journey towards true parity is still far from over

Take Albania, for example. Ranked 23rd out of 146 countries, it’s leading the region when it comes to women in politics. Half of Albania’s ministers are women—a record-breaking number globally—and women occupy 35.7% of parliamentary seats. In business, women have majority ownership in 16.9% of companies, and nearly one in five firms has a female leader. Impressive, yes—but how close is that to equality?

Then there’s Bosnia and Herzegovina. Ranked 78th, it’s moving in the right direction, climbing eight places from last year. But with only 20% of parliamentarians and 11% of ministers being women, there’s still a long way to go. And in business?

Just 12.2% of companies are majority female-owned, with slightly more, 16.6%, being led by women. The gender pay gap remains close to the European average, at 13%.

Croatia, sitting in 61st place, tells a mixed story. Women hold 33.8% of seats in parliament and 18.75% of ministerial posts. In business, 18.5% of companies are majority-owned by women, but a healthier 27% have fe-

male leaders. Yet the gender pay gap looms large, at 14.08%.

Montenegro, ranked 67th, presents a more cautious picture. Women occupy 27.2% of parliamentary seats, while just over a fifth of government ministers are women. The business numbers are similar: 11.8% of companies have majority female ownership, and 15% have female leadership. On the plus side, the gender pay gap is lower than in many other countries, at 7.7%.

Over in North Macedonia, a country led by a woman, Gordana Siljanovska Davkova, things are looking brighter in politics, with women holding 42.5% of seats in parliament. Yet only 25% of ministerial posts are held by women. Meanwhile, just 11% of companies are majority-owned by women, but 21.3% have women at the top. The gender pay gap stands at 9.1%.

Serbia, meanwhile, sits just behind Albania in 26th place. With 38% of seats in parliament and 40% of ministerial posts held by women, it’s ahead of many of its neighbours. In busi-

ness, 13.7% of companies are majority female-owned, while 18.2% are led by women. The pay gap for the same work is 8.8%.

And then there’s Kosovo*, which has made strides in political representation. Women now hold 40 seats in its parliament, surpassing the legal minimum of 30%, and seven parliamentary committees are chaired by women. Kosovo is also proud to have its second female president, Vjosa Osmani. Over the past few years, the number of women in decision-making roles has tripled—promising progress that shows the potential for change.

Slovenia , with President Nataša Pirc Musar, ranks 34th. Women occupy 37.8% of parliamentary seats and 31.58% of ministerial roles. Yet, only 11.1% of companies are majority-owned by women, while 18.8% are led by female managers. The gender pay gap is one of the lowest in the region, at 8%.

Sources:

Data from the World Economic Forum’s Global Gender Gap report 2024 / Eurostat for wage data

The Region Changes, Trust Remains

Metalac is a company that has relied on its own strengths for 65 years. With excellent synergy among all employees, it’s natural that the results follow,” says Radmila Trifunović, CEO

RADMILA TRIFUNOVIĆ

Metalac

CEO

Over the last five years, we’ve invested €23 million in projects related to production automation, logistics, green transition and artificial intelligence. And this process is far from over. We will continue to focus on these areas and aim to invest around €4 million annually. It is difficult to predict what will happen, but we believe that we are moving in the right stra-

tegic direction by developing in the areas I mentioned, and I would add only an intensive focus on the development of human resources, highlights Radmila Trifunović, who recently began her second term as CEO of this Gornji Milanovac- based coompany.

Metalac is a financially sound, future-oriented and socially responsible company

that has a 65-year tradition. How has the company achieved so much success in such a challenging sector?

— We are a company that has learned to rely on its own strengths. No matter what happens, there are always a few things that we keep in focus: maintaining financial health and safeguarding our people; investing in the modernisation of equipment and technology; renewable energy sources; digitalisation; and modern process management. This requires vision, persistence, courage, new knowledge, an ability to motivate people and a thorough understanding of change.

Of course, as a company with over 2,000 employees that operates in a challenging sector, we manage our internal economy carefully. With the excellent synergy of all employees, especially my closest associates, it’s natural that results follow. Over the previous five very challenging years, we achieved consolidated revenues of €133 million, representing a 43% increase. Profits reached €7 million, marking 55% growth, while investments amounted to an impressive €23 million.

Metalac is a well-recognised brand throughout the region. How do you achieve this?

— We have built trust over decades, with a great deal of care and responsibility towards each of the markets of the former Yugoslavia. Regardless of the changes this region has undergone, the quality of our products has remained a constant that connects us with customers, along with many other things that are not confined by borders. After all, these markets still account for over 50% of our total exports, while we globally export over four million products annually.

Your investments in renewable energy sources and environmentally-friendly technologies and facilities are increasing year on year. Are there any investments that stand out in terms of scale or importance?

— Yes, we are focusing on two key areas as a foundation for our survival on the global market. First is the green agenda, both in terms of investing in renewable energy sources and in people, as well as in the environment in which we live. Second is artificial intelligence. The modern Metalac

that we aspire to become will have access to all market data, which will guide our decisions and actions. At the same time, automation and digital transformation will lead inevitably to changes in certain job profiles and further reductions in employee numbers. This gives Metalac the opportunity to continue being a healthy, modern

Regardless of the changes Adria region has undergone, the quality of our products has remained a constant that connects us with customers, just like many other things that aren’t restricted by borders

company that is attractive to both employees and investors.

We thought it would be hard to comprehend Metalac’s production programme universally, but then we tried to list all your CSR initiatives and contributions to the community. Caring for your people is also an additional priority, which isn’t easy for a company that has more than 2,000 employees.

— Metalac truly takes great responsibility for its employees, partners, customers and the community in which we operate. The public recognises us for this – not just for our products. I would say that our corporate culture, ethics and values contribute significantly to the recognisability of our corporate and product brands. It’s true that we invest in environmental protection, support for local initiatives and projects, and assistance for our employees and their families, but it is the consistency and continuity of such actions that people appreciate and respect the most.

We recently celebrated the 18th anniversary of the Metalac Foundation, which has become best known for its campaign Growing Together for the Future. This initiative encourages young workers to start families, have children and not worry about job security. We’ve welcomed nearly 1,000 children over the course of this period, whose births we have rewarded with more than a million euros. We support the development and sustainability of six sports clubs in Gornji Milanovac, involving over 600 children and young people. Metalac currently provides additional pension insurance to more than 600 of our top-rated employees, with this number growing continually. These are our most cherished investments, along with our support for cultural events, education and healthcare.

We’ve also spent many years investing in cleaner production, waste processing and everything that is only now becoming obligatory. Metalac is ready to meet new challenges. As a company with a truly forward-thinking mindset, it’s only natural that we are focused on caring for future generations and everything that’s important for their future. Honestly, leading a company that prioritises values like honesty, respect, trust and commitment only adds to my personal enthusiasm, because it strengthens my integrity, which I value highly.

Corporate Pulse

MPC Properties

Appoints Lucien Smits as New Chief Financial Officer

MPC Properties, one of the regional leaders in development and construction, has appointed Lucien Smits as its new Chief Financial Officer. Smits brings 19 years of experience in the commercial real estate sector and deep expertise in corporate finance, accounting, tax, financial, and asset management. Before joining MPC, he served as Chief Financial Officer at Egeria Real Estate in the Netherlands.

Srđan Kondić

Appointed as New CEO of Addiko Bank Serbia

Kondić, previously the CEO of Addiko Bank Banja Luka, brings nearly two decades of experience in banking, regulatory bodies, and academia. Under his leadership, Addiko Bank Banja Luka achieved record results within the Addiko Group. He succeeds Vojislav Lazarević, who now assumes the role of Deputy Chairman of the Board of Addiko Bank Serbia.

Air Serbia Unveils New Plane Featuring Expo 2027 Design

Air Serbia has revealed its latest Airbus A330-200 at Nikola Tesla Airport, showcasing a special design promoting the upcoming Expo 2027 event. The newly branded aircraft will fly to major destinations like New York, Chicago, Tijuana, and Guangzhou in China, spreading the message, “Join us in Belgrade, the centre of the world.” Air Serbia will expand its fleet to 29 planes by the end of this year with the arrival of three more aircraft.

All Eyes On Screens Secures €10M

Croatia-based startup, All Eyes On Screens (formerly AdScanner), has successfully closed its Series B funding round, reportedly raising around €10M, according to The Recursive. The round was led by Taiwania Capital, with support from existing investors LEAD Ventures, J&T Ventures, and South Central Ventures. The company, known for its AI-powered platform that optimises cross-device TV and streaming campaigns, aims to use this investment to expand its global reach.

Albanian Largest Electronics Retailer Neptun Expands to Sarajevo

Neptun, Albania's largest consumer electronics and household appliances retailer, is set to open its first store in Bosnia and Herzegovina's capital, Sarajevo. The new store, spanning 1,000 square meters, will be located in the heart of Sarajevo, according to a statement by Neptun’s CEO, Alexandros Kosenas, reported by local media. Neptun, which currently operates 30 stores across Albania, 28 in North Macedonia, and 14 in Kosovo*, plans further expansion in the region.

CIAK Group Acquires Bosnian Auto Parts Distributor Sim Impex

CIAK Group has announced the acquisition of Sim Impex, one of Bosnia and Herzegovina’s leading independent auto parts distributors. Sim Impex, based in Banja Luka, boasts a turnover of over €21 million and employs 245 staff across 33 locations throughout the country. This acquisition is the latest in a series of strategic moves by CIAK Group. Last year, the company acquired Slovenia’s Potokar, following three acquisitions in 2021: Next Auto from Podgorica, Trgometal from Zagreb, and Auto Milovanović from Banja Luka.

30 Years of Raiffeisenbank in Croatia

Raiffeisenbank Croatia is celebrating 30 years of successful operations, having established itself as one of the leading financial institutions in the country. Over the past three decades, the bank has played a significant role in the development of the Croatian economy and financial sector.

Milšped Group Expands into the UAE Market

The company will offer integrated logistics solutions to clients operating in the region, further enhancing Milšped’s global portfolio. With this latest addition, Milšped now operates in 15 countries, cementing its position as a key player in international logistics.

Montenegro’s FDI Surges, Driven by Real Estate Investments

The total inflow of foreign direct investment (FDI) by the end of August reached €575.2 million. At the same time, €244.99 million flowed out of the country, largely due to resident investments abroad and the withdrawal of non-resident funds. The net FDI inflow, representing the difference between inflows and outflows, stood at €330.21 million—an increase of 18.5% compared to the same period last year.

Croatia Raises Minimum Wage

Croatian Prime Minister Andrej Plenković announced an increase in the country’s minimum wage. Bringing the gross amount from €840 to approximately €970, the move aims to improve living conditions for the 100,000 people currently earning the minimum wage in Croatia.

Real Results Yet to Come

Zeta Energy, representing a joint venture between Montenegro’s EPCG and Norway’s NTE, aims to preserve and increase the capacity of existing small hydropower plants, says Jefimija Pavićević, CFO of this Danilovgrad-based company

JEFIMIJA PAVIĆEVIĆ

CFO, Zeta Energy Danilovgrad

Speaking in this interview for our magazine, Zeta Energy CFO Jefimija Pavićević explains that the company is currently exploring the potential and possibilities to build new hydropower plants and reconstruct old ones across Montenegro. She emphasises that Zeta Energy remains fully committed to improving both technological and environmental standards, all with the aim of protecting the environment.

What are the advantages of your small hydropower plants, and how do they impact the environment?

— We can today say confidently that Zeta Energy, through reconstruction projects for the Slap Zete and Glava Zete small hydropower plants (SHP), has demonstrated its true dedication to improving both technological and environmental standards in Montenegro. Speaking about the tangible results before and after reconstruction, we can note a 42% increase in production compared to the period prior to reconstruction. Considering the overall picture of these energy facilities, we must highlight the technical solutions implemented to protect the environment. Both facilities feature modern systems for controlling wastewater, both technological and sanitary, in line with the latest standards.

Another distinctive feature of SHP Glava Zete is the installation of a water-lubricated system on the production units, which represents a step forward in environmental protection. This solution is the first of its kind in the region and represents a significant advancement in implementing the

A distinctive feature of the Glava Zete SHP is the installation of a water-lubricated system on the production units, representing a step forward in environmental protection

most demanding environmental protection standards.

In late March of 2024, your company was granted a concession to use part of the Zeta River to generate electricity at the Slap Zete SHP. What is your expected annual production?

— The Montenegrin Ministry of Energy and Mining reviewed the documentation submitted and concluded that the applicant provided the required documents and met the eligibility conditions stipulated by the Concessions Law. Consequently, the Government made the decision to grant the concession, based on which the concession contract was signed.

Unlike 2023, which was one of our best years in terms of revenue and, primarily, production, due to very favourable hydrometeorological conditions, this year has been completely different. Given that 2024 was a very poor year hydrologically, the total expected production is 22.5 GWh.

What can you tell us about your plans for new projects in the energy sector? Are you planning to expand your operations beyond Montenegro, in collaboration with NTE, to the region and further afield?

— Although we are a small company selling electricity on the local market, we hope that we will be able to expand our business beyond Montenegro by developing new projects within the energy sector, together with NTE, which is one of the largest electricity producers in Norway. We are currently researching potential sites for building new hydropower plants, as well as considering the possibilities of reconstructing old ones within Montenegro. For now, regional cooperation remains uncertain, but we are open to any potential collaboration if the opportunity arises.

Corporate Pulse

Western Balkans Economic Growth to Hit 3.7% by 2025

The World Bank’s latest Regular Economic Report forecasts that the Western Balkans will see economic growth of 3.7% by 2025, mainly due to rising consumption and investments, supported by increasing purchasing power. During the report’s presentation, it was revealed that this estimate is 0.2 percentage points higher than previously predicted in the spring report. Furthermore, the region’s growth rate for 2024 is expected to be 3.3%, a 0.1 percentage point increase from earlier estimates.

Bosnia’s Gold Imports Triple

Bosnia and Herzegovina has seen a dramatic surge in gold imports, with the value reaching 1.645 million BAM in the first nine months of this year—nearly triple the amount recorded during the same period last year. The bulk of the gold imports arrived from Italy, followed by Slovenia, China, and Germany, as demand for this precious metal continues to rise.

Wiener Insurance Celebrates 25 Years in Croatia

Wiener Insurance VIG, a subsidiary of the Vienna Insurance Group (VIG), is celebrating 25 years of successful operations in Croatia, establishing itself as one of the leading players in the country’s insurance market. Looking ahead, Wiener Insurance is focused on expanding its non-life insurance offerings, particularly in property, health, and motor vehicle coverage.

Ananas Expands Into Montenegro and Bosnia

Ananas, the regional e-commerce leader, has successfully expanded its operations into Montenegro and Bosnia and Herzegovina, marking a significant step in its international growth strategy. With over 1,100 merchants and a product range exceeding half a million items, Ananas has solidified its position as a key player in the online retail space in just over two years.

Albanian Coffee Chain Mulliri Vjeter Expands Further into Egypt

Albanian coffee brand Mulliri Vjeter has continued its expansion in Egypt, opening its second coffee shop near the historic pyramids of Giza, just southwest of Cairo. The move marks a significant step in the company’s growth strategy within the country, following the success of its first Egyptian outlet, which launched in February 2023 in the upscale Mivida community in Cairo.

Burger King Returns to Slovenia

Burger King is set to make its return to Slovenia, according to recent online announcements seeking new employees for the fast-food chain. The franchise will be operated by Marche, known in Slovenia for its highway rest-stop restaurants, or its owner, the French travel and hospitality group Lagardère Travel Retail. The new Burger King outlet will open at the Lom 2 rest area on the coastal highway to Koper, alongside an existing Marche restaurant. The opening is scheduled for the second half of December, with a design similar to Burger King locations in neighbouring Croatia.

Croatia’s Gaming Industry Defies Global Slowdown

The spotlight on Croatia’s gaming prowess extends to the popular streaming platform Twitch, where several Croatian games have amassed remarkable viewership numbers. According to data from Twitch Tracker, the most-watched Croatian game of all time is SCUM, with an impressive 217,872 peak concurrent viewers. Following closely are Talos Principle (140,563 viewers) and Serious Sam 3 (101,110 viewers), further cementing Croatia’s place in the global gaming landscape.

Marsecchia in Rijeka Named Croatia’s Best Speciality Coffee Shop

Marscecchia Coffee Shop in Rijeka has been crowned the best speciality café in Croatia by European Coffee Trip, a publication dedicated exclusively to coffee. The annual European Coffee Trip Awards, which recognise the top speciality coffee shops across Europe, saw Marscecchia take the top spot in Croatia. The café, which opened in late 2022 at Šime Ljubića 4a, was founded by renowned barista Luka Panović. The award was determined by votes from users of the European Coffee Trip app, where Marscecchia received the most support from coffee enthusiasts nationwide.

Montenegro Bans Plastic Bags, Fines

Up to €40,000

Montenegro has officially banned plastic bags and single-use plastics as part of its sweeping Law on Waste Management. The new law, which aims to curb environmental damage and protect public health, imposes fines ranging from €1,000 to €40,000 for those who fail to comply. In line with these regulations, the government introduced a charge of €0.03 per light plastic bag with a wall thickness exceeding 50 microns, calculated monthly based on the quantity circulated by sellers.

Macedonians Can Sue State Over Air Pollution

North Macedonia’s Supreme Court ruled that citizens can sue the state for health damage caused by air pollution. The ruling follows lawsuits filed by two citizens who claimed they were forced to breathe heavily polluted air and demanded the state implement a strategic action plan for environmental and public health protection.

Reflection of the Evolving Identity

Exploring the Adria Region’s architecture, from urban innovation to heritage preservation, revealing how today’s designs are shaping tomorrow’s landscapes

As the countries of the Adria region transition through periods of social and economic change, architecture has emerged as a crucial element in defining regional identity. Modern architectural projects across these nations showcase creativity and a deep sense of historical awareness and sustainability. Today, architects in the region face the challenge of balancing tradition with progress, creating spaces that honour cultural heritage while meeting the demands of contemporary life. This convergence of influences has led to a striking architectural landscape where historic restoration projects coexist with innovative urban spaces and environmentally conscious designs.

In cities like Belgrade and Zagreb, a new wave of urban revitalisation is reshaping entire neighbourhoods. High-rise projects and sleek office complexes rise alongside carefully preserved heritage buildings, reflecting a commitment to merging the past with the future. These cities are fast becoming hubs for bold architectural experimentation, where public and private spaces are crafted with both aesthetic appeal and functionality in mind. Take, for example, Slovenia’s Wooden Skyscraper Project, an initiative that embodies sustainability by using renewable materials and energy-efficient technologies. Such projects highlight Slovenia’s leadership in sustainable architecture and its commitment to a greener future, inspiring similar developments across the region.

Croatia’s trend leans toward adaptive reuse and innovation within existing urban frameworks. In Dubrovnik, architects are tasked with preserving the character of historic structures while adapting them for mod-

Porto

Montenegro

ern use, blending old-world charm with functional renovations. Along the coast, cities like Split and Zadar have developed unique public installations, such as the Zadar Sea Organ and Greetings to the Sun , which blend art, technology, and environmental consciousness. These interactive installations offer a glimpse into the creative poten-

tial of architecture to engage people in their environments actively, setting Croatia apart as a model for innovative urban design.

Meanwhile, in Serbia, large-scale projects like the Belgrade Waterfront have sparked discussions about the future of urban spaces. While some view this development as a

bold step toward modernisation, others raise concerns about preserving the city’s unique cultural landscape. This project—and the debates surrounding it—reflects the broader challenges in Serbian architecture, where urban growth must be carefully managed to maintain cultural authenticity.

Beyond the urban centres, the region’s architecture also extends to luxury tourism and eco-conscious resorts, particularly in Montenegro. Projects like Porto Montenegro and Luštica Bay combine opulence with sustainability, attracting international attention while supporting local economies. These developments showcase contemporary luxury and embody Montenegro’s vision of sustainable tourism, where high-end infrastructure coexists harmoniously with natural landscapes.

The following interview with Milutinović delves into his journey as an architect rooted in the Adria region, examining his perspectives on urban development, heritage preservation, and the changing relationship between architects and clients. His insights add depth to our understanding of how architecture in the Adria region continues to evolve as it navigates the challenges of modernity, culture, and sustainability. ∙

The Greetings to the Sun

Wooden Skyscraper Project, Slovenia

Source By HajotthuOwn work, CC BY-SA

Designing Today for Tomorrow

From foundational beginnings to award-winning achievements, architect Predrag Milutinović shares his vision on architecture’s evolving role in society

PREDRAG MILUTINOVIĆ

Dipl. Ing. Arch, Founder & Owner, MAPA Architects

As he awaits the call to leave his mark on his hometown of Ivanjica, architect Predrag Milutinović continues to shape a diverse array of buildings across the region—from villas to hotels—earning accolades for his innovative work. In this exclusive interview, he reflects on his career beginnings, his approach to investor relationships, urban development, and how architecture influences the quality of life and our shared future.

As a student often seen drawing, did you ever envision how far your ideas and visions would take you?

— I wasn’t entirely certain from the start that I’d pursue architecture, although the concept intrigued me. However, I realised early on that my real interest lay in physical space itself. The ability to reflect on space and then shape it, to be part of change, drew me in. I recognised that I could influence both small and large environments and, by extension, affect people—whether users, consumers, or inhabitants. That idea really appealed to me: the possibility of creating something functional yet also beautiful, intriguing enough to capture people’s attention. That’s when I knew my calling was architecture.

After graduating in 2002, you spent 13 years working in a corporation. How valuable was that experience to you?

—That experience was invaluable. Working on projects from concept through to design and execution in a corporate setting gave

A

Good Architect Must Be a Good Manager

me a unique perspective. It taught me to approach projects from both a financial and a design standpoint, which later helped me understand the investor’s position. When I later moved into roles as an investor or project coordinator, I could see things from both sides.

Now, when I sit down with an investor, I’m often one step ahead in terms of what they’re thinking, making my service more comprehensive. I’m able to answer questions that some of my colleagues might overlook, which gives me an edge. As a successful architect today, I must also be a capable manager.

In your view, what role does architecture play in shaping the identity of our cities

Besides Montenegro, we’ve done significant work in Croatia in recent years, and I think it’s vital to maintain regional relations

and the region as a whole? Should more respect be given to heritage?

— I believe architects who experienced the post-communist period have inherited a complex legacy. During the socialist era, extensive construction was conducted with a strong emphasis on fundamental design principles. Great care was taken in every aspect of design and standardisation. Today, innovation in materials or construction itself is plentiful, but we see much less creativity in design, where originality has been greatly diminished.

Rather than building more, I think we should focus on building more innovatively, which could mean faster, cheaper, and perhaps even better quality. The construction boom we see in densely built areas is a symptom of lifestyle shifts, influenced more by social changes than by architects themselves. I wouldn’t say our cities are developing poorly, but neither can I say they’re flourishing— there’s no isolated perspective from which to view such things. Architects should have more influence over regulations, planning, and programming, but the reality doesn’t reflect that.

Architects once educated investors, while today, you’re often presented with fixed project briefs. Does this necessarily limit creativity?

— Investors today often come with images and ideas they’ve gathered on social media, telling us what they want and saying, “I’ve shown you everything; I’ve invested the money; now, all you need to do is put it together.” I believe that our work remains serious despite the conflicting trends and extremes in architecture today, particularly in Belgrade.

My clients are typically accomplished people who lead their own companies or hold senior roles within organisations, so I truly enjoy exchanging knowledge with them. I’ve learned a great deal from my clients as an architect. Some architects may feel embarrassed

to say that they learn from investors, as this is often linked to “investor-driven architecture.” I disagree. Some clients have seen more of the world than we have and can bring new perspectives to the table. By listening to their stories, we can learn something new and improve our work.

You’ve worked independently as an architect and consultant for hotels in Montenegro, but your regional experience doesn’t stop there.

— My experiences across the region have been largely positive, especially because we’ve often worked through personal connections. Besides Montenegro, we’ve done significant work in Croatia in recent years, and I think it’s

Rather than building more, I think we should focus on building more innovatively, which could mean faster, cheaper, and perhaps even better quality

vital to maintain regional relations. The geopolitical landscape is shifting. While many are moving westward, some of our neighbouring Balkan countries are turning toward us in the east. Perhaps our services are more affordable, or they lack local expertise as their ar-

chitects move abroad, or maybe they appreciate our approach.

Today, many of our architects work in Slovenia and Croatia. We’ve designed numerous homes in Istria and along Croatia’s coast. Thanks to social media, newspapers, magazines, and websites focused on interiors and architecture, our work is now more accessible than ever.

You won the audience award at the Architecture Salon for a villa you designed in Dedinje. What do you think made the audience vote for your work?

— Some of my colleagues say that the audience award is more meaningful than the main award, which is given by a jury that may only focus on one aspect or theme in architecture at any given time. The audience award, on the other hand, is given by a specialised group of viewers. As for the villa that won, I’m genuinely pleased with the result, and so is the investor. We managed to create something that combines good architecture with user-friendliness, a place where people feel the way they wish to. The best sign of success is when, upon returning from a trip, the residents say they’ve truly returned home.

Returning to your roots, to Ivanjica, where it all began—have you had the chance to create something in your hometown?

— Unfortunately, I haven’t had the opportunity to build anything in Ivanjica yet. I’m unsure if that’s due to my nature or the nature of Ivanjica’s residents. No one has invited me to create something there, though I’d genuinely like someone to ask, and I’d gladly take on such a project pro bono. ∙

RD Center/Render by Mapa Architects

Concept “NBG Tower” /Render by Mapa Architects “Mind Office Building” Interior, Mind Park

Photo by Relja

Ivanić

Corporate Pulse

Serbia Reduces Shadow Economy by a Quarter Over 10 Years

Serbia has reduced its shadow economy from 29.1% to 21.1% of GDP over the past decade, largely through a series of digital reforms led by the government and NALED (National Alliance for Local Economic Development). Key initiatives like eFiscalization, eInvoices, and reforms in freelance work have been pivotal in improving transparency and tax compliance.

Slovenians to Vote on Krško Nuclear Power Plant Expansion

On 24 November, Slovenians will head to the polls to vote in a consultative referendum on the construction of a new unit at the Krško nuclear power station. The expansion of nuclear capacities is viewed as a critical long-term measure in this process.

e& Acquires Majority Stake in PPF Telecom Group

Abu Dhabi-based technology conglomerate e& has officially acquired a majority stake in PPF Telecom Group, marking a significant expansion into Central and Eastern Europe. With this acquisition, e& extends its global presence to 38 countries, now serving over 1 billion people across the Middle East, Asia, Africa, and Europe. The deal provides e& with its first operational base in Europe, where it will deliver advanced technologies, network infrastructure, and innovative digital services to more than 10 million customers in Bulgaria, Hungary, Serbia, and Slovakia.

Orbico Acquires 51% Stake in Ukraine’s SAV ORBICO

Croatian consumer goods distributor Orbico has acquired a 51% stake in SAV ORBICO Ukraine, a leading distributor of food and non-food products, as of the end of August. Orbico, which manages over 500 international and local brands, serves more than 59,000 customers across sectors, including beauty care, motor oil, and household products.

Knjaz Miloš Opens New Production Facility

Serbian beverage company Knjaz Miloš has inaugurated a new production facility equipped with two state-of-the-art production lines for beverages. The total investment for the modernisation of the Aranđelovac plant amounted to 28.5 million euros.

North Macedonia’s Central Bank Sells 10 bln Denars in CB Bills Auction

North Macedonia’s central bank, the National Bank of the Republic of North Macedonia (NBRNM), sold 10 billion denars ($175.4 million/162.5 million euro) worth of 55-day central bank (CB) bills at an auction, in line with the target. Anita Angelovska Bezhoska, Governor of the NBRNM, announced the results, emphasising that the auction aligns with the bank’s monetary policy objectives.

Gebrüder Weiss Celebrates 20 Years in Serbia

Celebrating two decades of operations in Serbia, logistics giant Gebrüder Weiss has firmly established its position in the market. Since entering the country in 2004, the company has invested over 20 million euros across four locations, employing 300 people. Beyond business, Gebrüder Weiss has actively shaped the industry’s future through its involvement in the Dual-VET program, underscoring its dedication to workforce development.

Bosnia’s Intesa Sanpaolo Banka Appoints New Management Board

Intesa Sanpaolo Banka in Bosnia has announced the appointment of a new management board, with Michele Castoro stepping in as president, replacing Marco Trevisan, who will take on a new role within the Intesa Sanpaolo Group after four years in Bosnia. Minja Filipovic has been appointed as deputy president and board member, while Indira Karamustafic, appointed earlier this year, continues as a member of the management board.

Serbia Receives Investment Credit Rating for the First Time

For the first time, the credit rating agency S&P Global Ratings has upgraded Serbia’s credit rating to investment level, “BBB—” with stable prospects for further improvement. This makes Serbia the first country in the Western Balkans and the only EU candidate country to achieve investment-grade status.

Property in Montenegro Sold for Over €10 Million

This year, Montenegro’s priciest real estate sale occurred on the coast, with a villa selling for just over €10 million, according to Stefan Mišković, President of the Real Estate Agency Association. He also noted that property prices in Montenegro have surged by 70% since the COVID-19 pandemic.

Staying Ahead of the Game

CEO of Plus d.o.o. Podgorica discusses the company’s market leadership, upcoming innovations, and significant contributions to Montenegro’s economy

PROKOPIJE PERIĆ

CEO, Plus d.o.o. Podgorica

I n this interview, Prokopije Perić, CEO of Plus d.o.o. Podgorica, reflects on the company’s success built on strategic planning, investment in employees, and partnerships with global brands like JTI, Loreal, and Hausbrandt. As the company looks ahead, Perić reveals exciting product launches and ongoing efforts to stay ahead in a competitive market. He also shares insights on the company’s substantial economic impact, contributing over 43 million EUR in excise taxes in 2023 alone, with expectations to surpass 51 million EUR by the end of 2024.

Your current market position is built on consistency, strategic planning, acquisitions of other quality companies, and, most importantly, investment in your employees. It seems there’s no reason to change this successful formula, right?

— I completely agree with you. We continue at the same pace, always striving to improve our market foresight and enhance our planning. Unfortunately, long-term planning has become nearly impossible due to constant changes both globally and locally. Despite this, all of our employees are essential to the planning process.

As the only company in the market without sub-wholesalers or central supply chains, our sales reps and merchandisers are truly

“our eyes and ears” in the field. Each of them, along with their supervisors and managers, closely monitors market dynamics, listening to the needs of consumers and retail outlets and reporting back to senior management. Thanks to the information they provide, we’ve been able to make many crucial and successful strategic decisions.

Even though you’ve had another excellent season, you’re already planning new business moves and working to improve both the quality and quantity of services. Always ahead of the competition and ahead of the times?

— If you want to remain a market leader, you really must be in a constant process of improv-

ing the products and services you offer. We recently launched PLOOM devices for smokeless tobacco products under the WINSTON STICK brand in partnership with JTI. Although the competition in this segment is fierce, results just three months after the launch are more than satisfying.

The most important thing is that consumers recognise the significant difference in the quality of the devices as well as the WINSTON sticks themselves. For those seeking an alternative to traditional cigarettes, we’ve finally delivered a top-quality product. I’d also like to take this opportunity to announce the upcoming launch of the ORA ITO special edition PLOOM device, which will soon be available across Montenegro. Additionally, Loreal has informed us of several innovative and improved products in the hair and skincare categories. HAUSBRANDT has introduced the first professional capsule coffee machine in Mon-

tenegro, ideal for companies with fewer employees who still want to provide high-quality coffee to their staff. It’s both our obligation and privilege to keep pace with and support our partners, who are recognised globally for their innovation.

We are striving to improve our market foresight and enhance our planning

In 2023, you contributed 43 million EUR to Montenegro’s budget from cigarette excise taxes. What are the expectations for 2024, and how is the situation in other categories?

— In 2024, during the first nine months, we’ve already paid over 42 million EUR in excise taxes for tobacco products, and by the year’s end, this amount will exceed 51 million EUR. This represents over 45% of the total excise taxes collected for tobacco products in Montenegro. We’re perhaps even more focused on other categories than cigarettes, as the competition is greater.

For us, collaboration with all our partners is extremely important, and we never differentiate based on the size or scope of the partnership. We’re equally dedicated to all because each contributes to our success in their own way.

Without partners like Loreal, Essity, Hausbrand, Banjalučka Brewery, and others, PLUS d.o.o. Podgorica wouldn’t be what it is today in the market. Each industry represented by these companies has its own specificities, helping us better understand the market and apply best practices across different industries. ∙

In 2024, during the first nine months, we’ve already paid over 42 million EUR in excise taxes for tobacco products, and by the year’s end, this amount will exceed 51 million EUR. This represents over 45% of the total excise taxes collected for tobacco products in Montenegro

Corporate Pulse

Croatia Among Top 10 Hardest-Working Nations Globally

Croatia ranks among the top 10 countries with the highest average weekly work hours, according to a 2024 OECD analysis. Croatian workers clock an average of 34.3 hours per week and accumulate 1,837 hours annually, placing the country alongside other hard-working nations such as Greece, Israel, and South Korea. Topping the list are Mexico (42.7 hours), Costa Rica (41.3), and Chile (37.5), with Croatia joining them in challenging the stereotype of shorter European work weeks.

MIV to Invest 60 mln Euro in New Foundry

Croatian valves and fittings producer Metalska Industrija Varazdin (MIV), a subsidiary of Germany’s Hawle Armaturen GmbH, is set to invest 60 million euros in constructing a new foundry. The announcement was made by the authorities of the northern Croatian town of Varazdin, where the new facility will be located.

Atlantic Grupa Sees 10.6% Sales Growth in 2024

In the first nine months of 2024, Atlantic Grupa reported sales of EUR 798.5 million, a 10.6% increase compared to the same period in 2023. EBITDA rose by 33.1%, reaching EUR 97.3 million, while net profit grew by 22.3% to EUR 44.7 million. The highest sales growth came from the Strategic Business Units Coffee at 20.3% and Beverages and Savoury Spreads, both showing 10.4% growth.

Kosovo* Approves Starlink for Service Launch

Kosovo’s* telecommunications authority, ARKEP, has granted approval to Starlink, the satellite internet provider owned by Elon Musk’s SpaceX, to begin operations in the country. Starlink’s services are already available across several Southeast European countries, including Albania, Bulgaria, North Macedonia, Romania, Moldova, and Croatia.

Durres Port Cargo Traffic Up 14% in First Nine Months of 2024

Albania’s Durres Port processed 5.4 million tonnes of cargo in the first nine months of 2024, marking a 14% year-on-year increase, according to the Durres Port Authority (DPA). Exports rose by 7% during the period, while imports saw a more significant 16% growth.

Serbia’s TS Ventures Invests in Startup Connect The Dots

Serbia’s TS Ventures Fund, created by state-owned Telekom Srbija, announced its investment in the Serbia-US startup Connect The Dots. The move strengthens TS Ventures’ portfolio and supports innovation in the startup ecosystem.

dm North Macedonia Sees 25% Turnover Growth

The North Macedonia division of German drugstore retailer dm drogerie markt reported a 25% year-on-year increase in turnover for the financial year 2023/2024, reaching 3.07 billion denars ($53.8 million/49.9 million euros) by the end of September.

Zagrebačka Banka Posts 13% Profit Increase for January-September 2024

Croatia’s Zagrebačka Banka Group, part of Italy’s UniCredit banking group, reported a 12.9% yearon-year rise in its consolidated after-tax profit for the first nine months of 2024. The growth reflects strong financial performance amid challenging market conditions.

North Macedonia Introduces Guarantees of Origin for Renewable Electricity

North Macedonia’s government has approved a decree allowing the National Electricity Market Operator to issue guarantees of origin for electricity from renewable sources. This move comes as Western Balkan countries prepare to meet EU deadlines for the Carbon Border Adjustment Mechanism, which will tax high-carbon imports, including cement, steel, and electricity, starting 1 January 2026.

Slovenia’s Credit Rating Affirmed

Both Fitch and Moody’s have affirmed Slovenia’s credit rating at ‘A’ and ‘A3’, respectively. While Fitch maintained a stable outlook, Moody’s upgraded Slovenia’s outlook from stable to positive, citing improvements in the country’s fiscal position. Additionally, S&P reaffirmed Romania’s BBB- rating with a stable outlook.

INTERVIEW

Exploring the Future of Serbia’s Jadar Project

Chad Blewitt discusses the challenges and opportunities of Rio Tinto’s Jadar Project, addressing environmental concerns, economic potential, and the path towards greater transparency and sustainability in Serbia

CHAD BLEWITT

Jadar Project Managing Director, Rio Tinto I

n this interview with The Region, Chad Blewitt, Managing Director of Rio Tinto’s Jadar Project, addresses the op-

portunities and challenges posed by the company’s plan to develop one of the largest lithium deposits in Europe. Amid concerns from local communities and environmental groups regarding safety and environmental impact, Blewitt discusses the steps Rio Tinto is taking to ensure that the Jadar Project can proceed in a responsible and transparent manner. He also highlights the potential economic benefits for Serbia while acknowledging the need for ongoing dialogue and cooperation with all stakeholders.

The move towards a greener economy relies heavily on key minerals like lithium. How can this need be balanced to maintain a clean and healthy environment? Are the necessary technologies and regulatory frameworks in place to achieve this balance?

— Mining can and must be safe. That is stipulated by laws and enabled by technology. It won’t even be possible to implement the Jadar Project until we are able to prove with in-

dependent studies that it’s possible to open it safely for the people and the environment. We recently launched that procedure in accordance with the laws of the Republic of Serbia, and we’re awaiting intensive, transparent and inclusive communication based on facts, in which we will show that we have at our disposal technologies that minimise negative impacts on both human health and the natural environment. The experts and general public have already been able to familiarise themselves with this through the drafts of the environmental impact assessment study that we published at our own initiative in mid-June, in a desire to respond with facts to the extensive and longstanding campaign of misinformation.

In what ways would the Jadar Project drive investments, job creation, and economic growth in Serbia? How would it support the economy both nationally and locally?

— The Jadar deposit is of such high quality that it could become a strategically important supplier of this critical mineral and would thereby generate significant economic value for Serbia. The planned investment exceeding 2.55 billion euros would be one of the largest industrial greenfield investments in the history of Serbia. At its full operational capacity, it would yield more than 180 million euros for the state annually from taxes and mining rents, which is approximately 1% of Serbia’s total current budget revenue, while the Loznica budget would be doubled. The project will create 3,500 jobs during the construction phase, while 1,300 jobs will be created during Jadar’s operations, with an average monthly salary exceeding 1,100 euros. If we add the related investments in the production of batteries and electric vehicles that this project can attract, we are talking about 20,000 jobs. That requires a highly qualified workforce, which will result in the development of personnel through collaboration with university colleges.

From your past experiences, what key lessons has your company learned, and how are they being implemented to ensure greater transparency, accountability, and a stronger focus on sustainable environmental technologies?

— We continuously introduce significant changes so that we can improve our approach to the protection of cultural heritage, the en-

vironment and our responsibility towards communities. We are dedicated to learning from such situations and applying the lessons learned in all aspects of our operations. Within the scope of the Jadar Project, our aim is to apply the best available environmental practices. We will invest over 100 million U.S. dollars in environmental protection, including for a water purification system and the conservation of biodiversity. We will cooperate with the Serbian Environmental Protection Agency and other institutions to ensure transparency and the responsible management of resources.

As electric vehicles become the future, countries like Serbia, Slovenia, and Croatia are slower to adopt compared to the EU. How essential is mining, particularly

It won’t be possible to implement the Jadar Project until we can prove with independent studies that it’s possible to open it safely for the people and the environment

lithium, for this transition, and what role do you envision for your company in advancing this shift?

—Lithium is a key component of clean technologies like those for electric vehicles and green energy storage in batteries. As such, it is perhaps the most strategically important metal in energy transition. At Rio Tinto, we are aware that our role in this future isn’t only in mineral exploitation but rather also in ensuring that this process unfolds in a way that satisfies the highest environmental and social standards. We are dedicated to collaborating closely with local communities and all stakeholders to ensure that the benefits of this project are distributed evenly. At the same time, we also contribute to broader sustainability and economic development goals.

Serbian President Vučić has urged your company to ensure clean water, protect the health of the Jadar and Drina rivers, and responsibly manage the soil and for-

ests. How can you guarantee these outcomes, and what steps are you taking to meet these expectations?

— The conclusion of the more than 100 independent experts who worked on the drafts of the Environmental Impact Assessment Study is that – with the proposed engineering solutions and mitigation measures – the project can be implemented responsibly and safely, in accordance with the most stringent standards of Serbia and the EU. In tangible terms, we have at our disposal an entire range of technologies with which we will reduce our impact on water, air, and soil to an absolute minimum. For example, all wastewater would be treated to the quality of Jadar’s water. The jadarite processing plant would use scrubber filter technology, which is proven and has been used widely to purify industrial gases for more than 50 years, while multi-layer liners would separate the waste from the soil. All data related to the project’s environmental impact would be made public on the company’s website, which is a practice that we apply worldwide. Furthermore, the competent state institutions would carry out legal oversight of the company’s work. Finally, due to strict European regulations, it wouldn’t be possible for us to sell lithium if we don’t adhere to the highest environmental protection standards.

What steps are you taking to engage the community positively and address their concerns over the Jadar Project?

— We are exerting maximum efforts to accurately and, in an open dialogue, inform citizens about the measures we take to protect the environment. However, this isn’t at all easy because they’ve spent years listening to misinformation and lies about how the project will have catastrophic consequences for the environment and human health. There is also fear among the local population, despite us having had good communication with the community since the outset. Over the last year alone, we have held more than 150 meetings with over 4,500 people. We provide an opportunity for citizens and the media to pose questions and receive precise and scientifically supported answers. We will continue to maintain a dialogue with all stakeholders and the media because we are aware that open communication and the involvement of local communities are crucial to gaining trust and achieving long-term benefits for all. ∙

Old bridge on Sava river

Culture Around the Region

By Radmila Stanković

Good Cooperation Mechanisms Lacking

Artists from all countries are ready to work together, while as a rule it is the authorities and institutions that fail to demonstrate the necessary understanding

Everything Ends, the new film by celebrated Croatian director Rajko Grlić, had its Belgrade premiere in October and was met with a resounding ovation. The rolling of the credits ended with a list of all the countries participating in its production: Croatia, Bosnia and Herzegovina, Bulgaria, Montenegro, North Macedonia, Serbia and Turkey. One of the producers was also Belgrade native Uliks Fehmiu, who has long been resident in New York. The music was written by Skopje native Duke Boyadzijev, who has also been resident in NYC for many years.

This film could be said to demonstrate the ‘brotherhood and unity’ of the region when it comes to cinematography. However, Grlić is a unique filmmaker who has amassed a large body of work, so this film primarily testifies to his personal biography, as an artist who emerged and matured in Yugoslavia, and who didn’t catch the plague of nationalism when the country collapsed. Nor did this scourge afflict his former Yugoslav friends, with whom he has continued to collaborate to this day. He considers his life choice as having been the only one possible in a situation in which the Balkan region is increasingly succumbing to the factor of the ‘unbearable weight of its own existence’.

Instead of governments and institutions, it was the artists themselves that first started collaborating after the dust had settled on the wars of the ‘90s. Still, this relates only to a small number of projects that are either individual collaborations or collaborations linked to the EU’s Creative Europe and Euro Image programmes. It remains rare to see institutional cooperation at the state level. Prom-

inent Bosnian theatre director Haris Pašović believes this is an error of both state policy and artists themselves.

“That’s because audiences in all countries of the region express an exceptional interest in joint cultural programmes and projects by artists from the Yugoslav region. There is no political will, because conflict is still nurtured as a political instrument and artists are often conformists, or are simply lazy. Where collaboration exists – as with the RUTA festival, in the independent sector or in individual guest performances by actors, directors, musicians, visual artists and dancers – the results are almost always outstanding. However, as is the case

with most other activities, there won’t be any major effects until more money becomes available in this domain, despite culture and art being major factors of freedom of speech, peace and multiethnicity,” explains Pašović.

This theatre director and professor of the University of Sarajevo’s Academy of Performing Arts is author and director of the play A World of Possibilities, which was co-produced by the East West Centre Sarajevo, Novi Sad’s Serbian National Theatre, Zagreb’s Tala Dance Centre and Budva’s Theatre City festival. This play has toured five countries and is still being performed as part of the Creative Europe programme.

When it comes to regional and international cooperation, the Belgrade Drama Theatre undoubtedly leads the way in establishing such links at multiple levels: via the RUTA and Naši Dani (Our Days) festivals and more than 20 co-productions created over the previous five years in cooperation with theatres from around the region and with the ‘Creative Europe’ fund.

RUTA, the Regional Union of Theatres, was created on the basis of the initiative of versatile Belgrade Drama

Theatre Director Jug Radivojević. Representatives of six renowned theatres from the territory of the former Yugoslavia signed the Protocol on Cooperation in the City of Belgrade Assembly on 18th October 2019. With this Protocol, six theatres joined RUTA: the Belgrade Drama Theatre, Ljubljana City Theatre, Podgorica City Theatre, Drama Theatre Skopje, Sarajevo’s Chamber Theatre 55 and Zagreb’s Ulysses Theatre.

RUTA member theatres have come together around the idea of organising theatre festivals in the capitals of the countries of the region, realising co-productions and implementing mutual guest performances. The envisaged dynamic is for the RUTA festival to be held throughout the year, appearing in a different city every other month: Belgrade in December, Ljubljana in February, Podgorica in April, Sarajevo in May, Brioni in August and Skopje in October. RUTA discussions are held after each performance and provide guests with an opportunity to present the artists and aesthetics championed by their theatre. The inaugural edition of the festival took place in Belgrade from 1st to 6th December

Haris Pašović:

Audiences in all countries of the region express an exceptional interest in joint cultural programmes, but there’s no political will for that because conflict is still nurtured as a political instrument

2019 and brought together more than 300 participants. RUTA will this December celebrate its fifth anniversary and the 33rd edition of the festival.

Speaking to The Region about this project, Radivojević explains: “the RUTA Association is today already an established festival, supported by the relevant institutions of every country and declared a ‘Manifestation of Importance to the City of Belgrade’. This festival represents the best example of multiculturalism that has resulted in the realisation of several co-productions that have become part of the festival’s regular repertoire. RUTA aspires to expand beyond the borders of the region with the aim of promoting the artistic values of this part of Europe. Opening up to international partners paves the way to new ideas and theatrical poetics, while exchanges of guest performances provide opportunities for artists to improve their skills and audiences to see higher quality plays. The Belgrade Drama Theatre is otherwise a meeting place for countless artists and audiences from around the world. It has also been most recognisable in recent years for striving to address global issues with partners

from abroad, crossbreeding different views of reality. That amalgamation creates exciting theatre.”

The Naši Dani Festival was created in 2021 and is also the brainchild of Radivojević, aimed at institutionalising the idea of cooperation between theatres through exchanges of plays and networking.

Belgrade’s Yugoslav Film Archives Cinematheque hosted the tenth Days of Slovenian Film event in early May. It paid homage to Ita Rina, a renowned and very engaged actress and model in Europe during the 1920s and ‘30s. A native of the Slovene Littoral, she was also a Belgrade lady of the Vračar neighbourhood. Filmmaker Vladimir Šojat’s film Ita Rina – The Diva From Divača was produced in cooperation with the Yugoslav Film Archives and the Slovenian Cinematheque’s Museum of Slovenian Film Actors. Slovenian Culture Minister Asta Vrečko was an official guest of this event. Belgrade-born Slovenian film director Dragomir Zupanc deserves the most credit for the inception of this event. Speaking in his capacity as artistic director of the Slovenian Film Days event, he explains why he persevered with his idea.

“I was already heavily engaged in Slovenian Film Festivals, whether as a participant or an observer, when I felt a strong need, as an irredeemable film activist, to present what I’d seen and experienced to a Belgrade audience. Twenty-five years had passed since the country’s split, yet there was still a need to connect and follow happenings in the former republics. The Days of Slovenian Film was officially the first in a series of presentations of cinematography that followed after that fateful November 2015.”

Jug Radivojević: The Belgrade Drama Theatre has been most recognisable in recent years for striving to address global issues with partners from abroad, crossbreeding different views of reality

This event quickly conquered other Serbian cities: Niš, Novi Sad, Smederevo, Vršac, Kovin and Pančevo. Speaking during its jubilee tenth iteration, Slovenian Ambassador to Serbia H.E. Damjan Bergant described it as “the most significant and best-attended Slovenian cultural event in Serbia.”

This event is also important as a precious review of classics of Slovenian film, such as the screening of France Štiglic’s Valley of Peace and Matjaž Klopčić’s Funeral Fest, Burial Lunch. Explaining the inclusion of these classics in the main programme, Zupanc stresses: “the selection of these films represents a reunion with

Culture Around the Region

the classics of Slovenian cinematography and provides a reminder of the time when Slovene filmmakers participated equally in the championing of Yugoslav cinema.”

Andrej Nosov is the founder and director of Heartefact, one of the main theatre companies of the region’s

independent culture scene. He is renowned for driving discussions of the common recent past in an effort to overcome differences and disputes, which led to Bosnian director Selma Spahić working with Heartefact in directing Hypermnesia, one of the first plays in which people from different countries dance, speak and remember the former Yugoslavia. Nosov also directed the memorable play Ghosts, which, apart from Heartefact, included the participation of Sarajevo’s MESS, Belgrade’s Bitef and Budva’s Theatre City

Heartefact places particular importance on its collaboration with artists from Kosovo*, which began more

than a decade ago. That’s how long the Heartefact Fund has been implementing the Reconnection programme –connecting and exchanging different artists and translating plays and novels, and bringing performers and performances to Belgrade. He works closely with playwright Jeton Neziraj’s Qendra Multimedia theatre company on exchange programmes for playwrights.

As Nosov explains, “for us, regional cooperation is something that’s implied, with a large number of associates living and working in the various countries of the region. It once seemed that this kind of exchange, dialogue, seeing and hearing how we view one another, would become a common practice that we would somehow work together on systematically. Unfortunately, there are only one-off initiatives that depend on the enthusiasm of individuals, with ever reducing and less significant support. The conditions aren’t there to just start collaborating and for that collaboration to be available to everyone and at different levels.

“There are a few regional funds that finance this kind of cooperation, such as the Regional Office for Youth and the Fund for the Western Balkans, but these processes and procedures are complicated for many to navigate and the funds are very limited.

Andrej Nosov:

We need stronger political will in cultural institutions to turn towards the region, to work together, to exchange, but for there to also be mechanisms for that cooperation

Photo Dragana Udovičić

Culture Around the Region

“It will turn out that film, and television production in general, is a good example for that lever. Presumably that’s due to the higher capital, or greater opportunities, because when cooperation does exist it is more visible, and there’s almost no film from the region that hasn’t received mutual regional support.

“We need stronger political will in cultural institutions to turn towards the region, to work together, to exchange. However, we need that to be more than just empty words and for there to also be mechanisms for that cooperation. Truth be told, you can see regional authors on the repertoires of many theatres in Serbia and other countries, but that remains at an incidental level – there is no special commitment to such a priority,” concludes Nosov.

Dragomir Zupanc:

The selection of certain films represents a reunion with the classics of Slovenian cinematography and a reminder of the time when Slovene filmmakers participated equally in the championing of Yugoslav cinema

Lesser-Known Tales

Slovenia’s Old Vine: The World’s Oldest Grape Producer

Slovenia is home to the Old Vine in Maribor, the world’s oldest grapevine, which is over 400 years old. It still produces grapes, and wine made from it is a precious souvenir. This historic vine has even made it into the Guinness World Records.

Mother Teresa’s Skopje Roots: A Global Icon’s Macedonian Beginnings

Mother Teresa, the famous Catholic nun and humanitarian, was born in Skopje, North Macedonia. Although she spent most of her life in India, the house where she was born is a significant landmark in Skopje today.

Bosnian Pyramids: Ancient Structures in Visoko

The town of Visoko is home to the so-called Bosnian Pyramids, which some claim are older than Egypt’s pyramids. Though the scientific community disputes the claim, the site draws curious tourists and remains a topic of intrigue and debate.

Albania’s Sworn Virgins: Tradition of Gender and Honor

Albanian sworn virgins, or burrnesha, are women who take a vow of celibacy and live as men, enjoying male privileges in Albania’s traditionally patriarchal society. This unique tradition, though rare today, has existed for centuries and reflects Albania’s cultural complexity.

Mother Teresa with Ronald and Nancy Reagan at the White House

Mother Teresa with Ronald and Nancy Reagan at the White House

Croatian Invention: How the Pen Revolutionized Writing

The pen as we know it today was invented by Croatian-born Slavoljub Penkala in 1906. His patented mechanical pencil and pen became popular worldwide and are still used in modern forms.

Slavoljub Eduard Penkala

Obedska Bara: A Protected Natural Treasure

Connected to the flow of the Sava River through the Revenica, Vok, and Vranj canals, Obedska Bara is one of Serbia’s oldest protected areas. The entire region is divided into three zones, each with varying degrees of protection. Human impact on nature is strictly prohibited in the area under the highest level of protection.

Montenegro’s Crnojevića Printing House: A 15th Century Balkan Legacy

Crnojevi ća Printing House, established in the 15th century, is among the oldest printing houses in Europe. Located in Cetinje, it played a significant role in the history of literature and printing in the Balkans.

Fića: A Beloved Icon of The Road

On 18 October 1955, the iconic Fića rolled off the production line at “Zastava” for the first time, with the final model leaving the factory in November 1985. Over three decades, 923,487 units were produced, and the car became affectionately known as the “national class.” Those who had the privilege of driving it fondly recall the joy it brought behind the wheel.

Аuthor: Fjhurt/Wikipedia Аuthor: Fjhurt/Wikipedia

Phototype edition of the Cetinje Octoich pentaglasnik

WATER QUALITY IN THE ADRIA REGION

Challenges, Disparities, and the Path Forward

While Slovenia and Croatia maintain excellent water quality, the rest of the Adria Region faces declining standards that demand significant investment in water infrastructure

Despite the region’s abundant water resources, a stark contrast exists. While Slovenia and Croatia boast some of the best tap water in Europe, neighbouring countries are grappling with an increasingly uncertain safety of drinking water. This alarming trend underscores the pressing need for immediate and substantial upgrades to water supply systems. It’s crucial to understand that improving water quality is not

solely about infrastructure investments. The region must also confront policies that put water sources at risk, such as environmental neglect, unregulated construction, and inadequate wastewater management. This situation presents a dual perspective: for some, the region’s water potential is a valuable asset, while for others, it’s a looming crisis, with neglect and underinvestment threatening this critical resource.

Securing Major Financial Support for Water Infrastructure

By Geri Kolgega

Despite the fact that 86.4% of Albanian households have access to running water, either within their home or in shared residential buildings, the country’s water infrastructure still grapples with significant challenges. The majority of Albania’s drinking water, about 80%, is sourced from underground sources like natural springs, hydrogeological boreholes, and individual wells, with the remaining 20% drawn from surface waters.

In Tirana, home to 32% of the population, the Tirana Water and Sewerage Enterprise ensures that tap water is regularly tested and deemed safe to drink. Two laboratories monitor water safety daily at 53 designated points across the city, with chlorine levels maintained within the recommended 0.3-0.5 mg/l range set by the Institute of Public Health. No objections have been raised by the Ministry of Health regarding water quality.

However, past assessments reveal a different story. In 2011, a Ministry of Health report found contaminated water in several areas, including the tourist cities of

Two laboratories monitor water safety daily at 53 designated points across Tirana

Vlora and Saranda, where chlorination was not performed. A total of 10 water supply systems across various municipalities were found to be contaminated.

To address these issues and expand access to clean water, Albania has secured substantial financial support. In 2012, €31 million in loans were secured for reforms, and in 2023, the World Bank provided an additional €85 million. These investments have led to marked improvements in water quality.

The Ministry of Infrastructure has also launched a comprehensive reform aimed at strengthening the financial standing of water supply companies and ensuring significant improvements in water quality by 2030. This includes the installation of new pipelines, which have been identified as a major source of contamination.

BOSNIA AND HERZEGOVINA

Drinking Water Becoming a Luxury

By Armin Zeba

Bosnia and Herzegovina’s abundant water resources are undermined by polluted infrastructure, leaving clean drinking water a scarce commodity and leading to costly bottled water imports

Despite Bosnia and Herzegovina’s abundant water resources - 262 rivers and watercourses covering nearly a fifth of its territory - the country faces severe water infrastructure challenges. Decades of neglect and failure to enforce regulations protecting water sources have polluted many rivers and lakes with household waste and industrial runoff. As a result, access to clean drinking water has become a luxury for those living in remote mountainous areas untouched by urban development and industry.

Sarajevo, the country’s capital, highlights the severity of the issue. Microbiological tests at the city’s primary water source, Vrelo Bosne, revealed contamination by pathogenic particles, rendering the water undrink-

able. This issue extends beyond Sarajevo. Yale’s Environmental Performance Index ranks Bosnia and Herzegovina’s tap water quality at 79.3 out of 100, indicating it is unsafe for consumption, with only North Macedonia faring worse in the region with a score of 70.0.

The country spends significant resources importing drinking water to complete this troubling picture.

In 2023, Bosnia and Herzegovina imported over 60.5 million litres of bottled water, costing more than €17.7 million, according to the Indirect Taxation Authority.

Yale’s Environmental Performance Index ranks BIH ’s tap water quality at 79.3 out of 100

A Water-Rich Nation with Untapped Potential

By Adriano Milovan

Unlike much of Western Europe, where bottled water is the norm, Croatians widely consume tap water due to its cleanliness and safety. According to Eurostat, Croatia leads the EU in water resources, with an average of 30,000 cubic meters per inhabitant, far surpassing the EU average of 4,000 to 5,000 cubic meters. This abundance ranks Croatia as the second most water-rich country in Europe, just behind Norway, which boasts

Private companies are becoming major producers of bottled water, much of which is exported

over 60,000 cubic meters per inhabitant. Despite this wealth of water, the country has yet to fully capitalise on its potential. Twen-

Pollution Poses a Growing Threat to Water Quality

By Srđan Popović

Montenegro is fortunate to have naturally high-quality water, but the country’s water supplies are increasingly at risk due to pollution, unplanned construction, and inadequate waste and wastewater management. According to the Montenegrin Institute for Public Health, recent analyses confirm that while water quality remains generally satisfactory, these threats pose significant challenges.

Teams from the Institute for Public Health regularly monitor water systems across the country, conducting tests and responding immediately to any issues. In 2023, the Institute tested 28,095 samples of drinking water from urban waterworks and other public facilities, carrying out 14,280 microbiological and 13,815 physical and physiochemical tests.

The results of microbiological testing showed that 3.61% of chlorinated water samples failed to meet hygiene standards, mainly due to elevated levels of bacteria, which is in line with World Health Organization (WHO) recommendations. Physiochemical tests revealed that 10.57% of samples did not meet regulatory standards, primarily because of low chlorine levels and increased turbidity during periods of heavy rainfall, which falls below the WHO recommendation of 20%.

ty years ago, Croatian authorities proposed collecting fees for water usage as a significant source of state revenue, but this plan remains unfulfilled. Meanwhile, private companies have seized the opportunity, becoming major producers of bottled water, much of which is exported.

According to 2022 data from the Croatian Institute for Public Health (HZJZ), approximately 94% of Croatia’s population is connected to the public water supply, allowing most citizens to safely drink tap water at home.

The country’s water supplies are increasingly at risk due to pollution

MONTENEGRO

Every Tenth Citizen Lacks Access to Safe Drinking Water

By Dejan Azeski

North Macedonia, a country rich in springs, lakes, and mountain rivers, has historically enjoyed an abundance of potable water. From ancient aqueducts to the extension of the water supply network during the Yugoslav era, the country has long ensured that most of its population has access to drinking water. Today, 88.9% of households are connected to the urban water supply system, but this still leaves 11.1% of households without access to chemically and biologically tested drinking water, a worrying statistic by European standards. Significant regional disparities exist in access to public water. While the Skopje capital region boasts a coverage rate of 91%, areas in the northeast, southwest, and Polog regions see between 25% and 34% of households lacking access to

SLOVENIA

North Macedonia also faces one of the highest water loss

rates in Europe

the public water supply. North Macedonia also faces one of the highest water loss rates in Europe, with estimates reaching up to 50%. The country is also notable for its excessive use of clean potable water for non-potable purposes, such as sanitation and agriculture. Despite these challenges, the issue of water segregation remains unresolved, with no clear plans to address it.

In the meantime, rural households are forced to invest in expensive filters and technology to clean their own water supplies.

Enjoy Safe Tap Water Nationwide

By Novica Mihajlović

Slovenia, though small, is one of Europe’s most water-rich countries, providing high-quality drinking water across almost the entire nation. With an average annual precipitation of around 1,500 millimetres supplying both surface and underground water, the country’s water system delivers reliable access to potable water, except for a few areas in the east where intensive agriculture poses a risk.

Water quality in Slovenia is carefully monitored, with more than 94% of the population connected to water systems that undergo regular testing at the tap. These systems are included in the state’s rigorous water quality monitoring program, which covers water supplies serving 50 or more people. However, the remaining 6% of the population - those relying on smaller water supplies or personal wells - are generally outside the monitoring system unless the wa-

94% of the population is connected to water systems that undergo regular testing at the tap

ter is used for public facilities or food production. Despite the country’s strong track record, a small percentage of residents, particularly in Slovenian Carinthia (25%) and the Savinja Statistical Region (15%), lack access to monitored water systems. This regional inequality in access to safe drinking water remains a challenge, with only modest improvements in recent years.

SERBIA Is the Nation Taking Its Water Resources for Granted?

By Nataša Damnjanović

Despite its proximity to Belgrade, over 100,000 people in Serbia have lived without access to clean drinking water for more than two decades. Unfortunately, the country still seems to take its abundant water resources for granted despite its significant challenges in ensuring access to safe drinking water.

Warnings from institutions like the Dr Milan Jovanović Batut Insti-

Research indicates that 40% of Serbia’s population lacks fully hygienic drinking water

tute of Public Health and other credible bodies have largely gone unheeded. Research indicates that 40% of Serbia’s population lacks fully hygienic drinking water, with approximately 600,000 people in Vojvodina consuming water contaminated with harmful levels of arsenic. In cases where water is deemed 100% unsafe, inspectors are required to label

it as “technical water,” making it unfit for consumption.

Serbia also struggles with untreated wastewater, often discharged into rivers, polluting smaller watercourses, particularly near industrial centres. The national sewage network covers just over half the population, and large cities like Belgrade, Niš, and Novi Sad lack wastewater treatment facilities, instead disposing of wastewater directly into rivers. Yet, these cities enjoy higher-quality drinking water than the national average due to stringent quality control measures.

Despite these pressing issues, Serbia is relatively well-positioned, though future investments in infrastructure and public education on water conservation will be critical. As water becomes an increasingly scarce resource, its responsible use will be vital to Serbia’s future sustainability.

Events

Economic Forum Highlights Key Challenges

The Economic Forum “Western Balkans as an Economic Space on the Path to the EU—10 Years of the Berlin Process” was held in Berlin in late September. Organised by German Economy Minister Robert Habeck, the forum outlined future cooperation between the Western Balkans and the EU. A key focus was raising awareness about the EU as a community of values and the role of local businesses in promoting EU membership benefits.

Serbian Cultural Center Opens in Zagreb

Serbia’s Minister of Foreign Affairs, Marko Đurić, and Croatia’s Minister of Culture, Nina Obuljen Koržinek, opened the Serbian Cultural Center in Zagreb. Both emphasised the importance of ethnic and cultural diversity, with Serbia committed to supporting the Serbian community in Croatia.

Brdo-Brijuni Summit in Tivat

At the Brdo-Brijuni Summit in Tivat on 8 October, regional leaders emphasised that the EU is incomplete without the Western Balkans. Montenegrin President Jakov Milatović hosted the event, which focused on enhancing cooperation between Western Balkan countries and the EU. Leaders of Croatia, Albania, Serbia, Slovenia, North Macedonia, Kosovo, and Bosnia and Herzegovina attended.

Regional Leaders Sign Agreement to Boost Female Leadership

Leading regional experts signed a Cooperation Agreement to empower women in the logistics sector. At the conference “Power of Joint Planning: Transport and Logistics for a Stable Regional Economy,” held at the Chamber of Commerce of Serbia, more than 200 business representatives from Serbia, Croatia, Slovenia, Italy, and Greece gathered. The agreement was signed by the Serbian Chamber of Commerce, Confindustria Serbia, the Slovenian Business Club, the Croatian Chamber of Commerce Representation in Serbia, and the Hellenic Business Association of Serbia.

Events

Erdogan Strengthens Ties with Serbia and Albania

Turkish President Recep Tayyip Erdogan visited both Serbia and Albania, describing Turkey’s current relations with Serbia as a “golden era” during discussions with President Aleksandar Vučić, where they signed agreements on disaster management, energy transition, and more. In Albania, Erdogan attended the 2nd High-Lev-

el Cooperation Council meeting, emphasising the deepening of bilateral relations through agreements in agriculture, higher education, and public relations. He also inaugurated the largest mosque in the Balkans, showcasing Turkey’s commitment to strengthening ties with both nations.

FDI Awards Slovenia 2024 Honors Leading Foreign Investors

Slovenia’s top foreign investors were celebrated at the prestigious FDI Awards in Slovenia 2024, hosted by SPIRIT Slovenija in partnership with the Ministry of Economy, Tourism, and Sport. The standout winners of this year’s awards include EKOLAT d.o.o. for its significant contribution to the Slovenian economy, Avantpack d.o.o. in the SME category, Lumentum d.o.o. for smart solutions and Henkel Maribor d.o.o. in the large enterprise category.

CEBAC Hosts EXPO 2027 Conference

Belgrade welcomed the first major conference of the Council of European Business Associations and Chambers of Commerce in Serbia (CEBAC), gathering over 200 companies from 14 European business organisations. The event focused on the much-anticipated Expo 2027 and its impact on Serbia’s economy and business landscape. Sanja Ivanić, General Secretary of CEBAC, kicked off the event by underscoring CEBAC’s mission to connect its member companies with key players in the Serbian market.

Donald Trump Jr Hosts Private Dinner with Belgrade Business Leaders

Donald Trump Jr made a surprise visit to Belgrade, where he hosted a private dinner for a group of prominent business figures in the heart of the Serbian capital. The dinner, held in one of Belgrade’s central hotels, gathered several influential businesspeople, including owners of construction companies and banks. However, no representatives from the Serbian government were in attendance.

Adria Region Talent Shines

Young innovators and athletes from the Adria Region continue to set new standards on the global stage

Jana, Roko, and Matija Win “Dražen Petrović” Awards for 2024

Jana Koščak (heptathlon), Roko Farkaš (long jump), and Matija Legović (biathlon) were honoured with the Croatian Olympic Committee’s “Dražen Petrović” Award for their exceptional achievements in 2024. This year’s awards also introduced two laureates in three categories, and a new statue by sculptor Neven Bilić was presented alongside the traditional prizes.

Stuents from Prijedor Win Third Place at NASA Competition in Paris

Students from Prijedor’s Electrotechnical School, Iva Dragojević, Dejan Stanojević, and Vladan Vukota, won third place at NASA’s app development competition in Paris. They created “Orbitoscope,” a 3D interactive web app showcasing the solar system. Their team, the only high school group in the competition, also won the award for the favourite team among 15 international participants.

Serbian Scientist Wins Award at the Innovation Cup in Germany

Marija Stefanović from the Institute for Chemistry, Technology and Metallurgy (IHTM) represented Serbia as part of an international team and won third place at the Innovation Cup, a prestigious competition organised by Merck. Their project, ProxiMEM, proposed a new therapeutic modality based on membrane protein transfer. “I’m proud of our third-place win and the potential for implementation,” said Marija, a first-year doctoral student at the University of Belgrade.

Getoar Hoxha – World’s Best Dentistry Student 2024

Getoar Hoxha won the title of Best Dentistry Student at a global competition. Competing against students from the USA, Europe, Asia, and Australia, Hodža’s dedication to dentistry earned him top honours. He works in both Peć and Priština and is passionate about continuously improving his skills and delivering exceptional care to his patients.

Young Slovenians Excel at the International Geography Olympiad

Four Slovenian students competed at the International Geography Olympiad, with Alexander Škof winning a gold medal and ranking 5th globally and Gregor Samsa earning a bronze. The team, including Zala Špoljar Slivnik and Nina Levstik, showcased Slovenia’s excellence in geography among 183 competitors from 46 countries.

Young Montenegrins Among the Best in Robotics

At the FIRST Global Robotics Olympics in Athens, the Montenegrin team ranked 76th out of over 190 countries and received two special awards for their creativity in the Social Media Challenge and their storytelling talent in the Video Storytelling Award. Their performance showcased innovation and earned them recognition on a global stage.

Top Graduates of Macedonian Medical Faculties

Anastasija Petlichkovska, Albina Ramadani, and Bojana Kacarova were named the top medical graduates of 2024 in North Macedonia. They received the Primarius Dr Dimitar Ivanovski Award, which recognises students with the highest GPAs at the country’s three major medical universities. All three are committed to advancing healthcare in their future careers.

Spotlight on Art and Innovation

Highlights from the 30th Sarajevo Film Festival and 58th BITEF

This year, two of the most recent and prominent cultural events in the Adria region have taken centre stage: the 30th Sarajevo Film Festival and the 58th BITEF festival in Belgrade. Both festivals continue to shine as key platforms for artistic expression, attracting attention for their rich blend of creativity and cultural relevance.

While the Sarajevo Film Festival celebrated cinematic achievements from around the globe, BITEF offered a captivating exploration of avant-garde theatre, showcasing bold new approaches to storytelling. These festi-

vals were not only about the art, but also about the vibrant cultural exchanges and international guests who graced the stage.

From exclusive film premieres to groundbreaking theatre performances, each event added its own flavour to the region’s dynamic cultural landscape. In the following articles, we’ll explore the highlights, key moments the creative forces behind both festivals, as they shaped an unforgettable season of culture in the Adria region.

Now, let’s take a closer look at these iconic events.

30th Sarajevo Film Festival

The 2024 Sarajevo Film Festival celebrated its 30th edition with a blend of cinematic excellence, international glamour and thought-provoking films

Thisyear's top honour, the Heart of Sarajevo award for Best Feature Film, went to Three Miles to the End of the World, directed by Emanuel Parvu from Romania. The film captivated the jury and audiences alike with its emotional depth and compelling narrative. Parvu's triumph marked a significant achievement, placing him firmly in the spotlight as one of the rising stars of Balkan cinema.

The jury tasked with selecting the best films was an impressive panel of international talent, including American screenwriter and director Paul Schrader, Slovenian actor Sebastian Cavazza, director and editor Una Gunjak, Finnish director Juho Kuosmanen, and Swedish actress Noomi Rapace. Their diverse perspectives contributed to a well-rounded selection of winners.

storytelling. Meanwhile, the awards for Best Actor and Best Actress went to Doru Bem and Anab Ahmed Ibrahim, respectively, for their captivating performances.This year’s festival was especially memorable, with Hollywood icon Meg Ryan receiving the Honorary Heart of Sarajevo at the 30th Sarajevo Film Festival, in recognition of her outstanding contribution to cinema. Adding to the star-studded affair, acclaimed director and screenwriter John Turturro also attended as an honorary guest, further elevating the event's prestige.

Heart of Sarajevo Award

One of the festival’s highlights was the remarkable comeback of international tourism to Sarajevo, as the festival drew in cinephiles and industry professionals from around the world. However, the event was not without its share of drama. Danish actor Mads Mikkelsen caused a stir when he stumbled on stage during the awards ceremony, though he quickly recovered with a smile, showing his trademark charm and professionalism.

The award for Best Director was presented to Greek filmmaker Yorgos Zois for his visually striking film Arcadia, which wowed the jury with its innovative approach and powerful

Another point of interest was the absence of filmmaker Lars von Trier, who was unable to attend due to health is-

John Turturro

Emanuel Parvu

sues, disappointing some fans. Additionally, Serbian director Emir Kusturica sparked controversy during a panel discussion by questioning the influence of international awards on regional cinema, igniting a lively debate that carried on long after the event concluded.

The runner-up for Best Feature Film, The Quiet Borders by Croatian filmmaker Iva Radić, was also a standout, exploring the refugee crisis with sensitivity and urgency. It was praised for its raw depiction of the human struggle at the Croatian border.

The festival also honoured documentary filmmakers, with the Best Documentary award going to Unknown Path by Zdenko Jurilj, which shed light on lesser-known stories of the Balkans.

As always, the Sarajevo Film Festival continues to serve as a beacon for cultural exchange artistic exploration, and the celebration of Balkan cinema. The 2024 edition, with its blend of award-winning films, Hollywood glamour, and the occasional controversy, once again solidified its place as one of the most important cultural events in the region. ∙

The award for Best Director was presented to Greek filmmaker Yorgos Zois for his visually striking film Arcadia, which wowed the jury with its innovative approach and powerful storytelling

Meg Ryan

58th Bitef Festival

The 2024 BITEF festival, one of the leading avant-garde theatre festivals globally, took place in Belgrade from 25th September to 4th October, under the slogan Beauty Will (Not) Save the World

This year’s edition was notable not only for its compelling slogan, but also for the rich diversity of international productions that graced its stages, featuring 10 performances from countries such as Germany, France, Brazil and Serbia.

The festival opened with Antigone in the Amazon, directed by Milo Rau, one of today’s most influential directors. This piece is a political and ecological commentary set against the backdrop of the Amazon rainforest and its destruction, drawing on the ancient Greek tragedy of Antigone to highlight modern-day struggles against capitalism and environmental exploitation. Rau’s bold direction, which featured live interactions with indigenous groups in the Amazon, was hailed as a highlight of the festival.

The Grand Prix of this year’s BITEF went to Jasna Žmak’s this is my truth, tell me yours, an experimental production that played with audience expectations and offered a deep reflection on subjective truths in a post-truth era.

The Jovan Ćirilov Special Award was shared between Sex Education II: Fight, directed by Tjaša Črnigoj, which explored themes of gender and power dynamics through an intimate yet confrontational lens, and The Bride and

the Goodnight Cinderella by Carolina Bianchi, a powerful piece examining violence against women in both personal and societal contexts.

Milo Rau won the Politika Award for Best Directing for Antigone in the Amazon, further cementing his place as a master of political and ecological theatre. His daring use of real-world activism blended with performance art left a lasting impression on both the jury and the audience.

The jury for BITEF 2024 included some of the most respected names in international theatre. Apart from Milo Rau, who had the dual role of participant and juror, the panel featured several prominent figures, such as Brazilian theatre critic and scholar Luiz Fernando Ramos, Serbian actress and director Mirjana Karanović, German theatre critic Thomas Irmer, Croatian choreographer and performer Bruno Isaković. Their combined expertise ensured a balanced and thoughtful selection of winners from the eclectic lineup of performances.

Milo Rau’s bold direction in Antigone in the Amazon, which featured live interactions with Indigenous groups in the Amazon, was hailed as a highlight of the festival

This year’s BITEF was not without its controversies and memorable moments. The provocative nature of some plays, particularly those dealing with raw social issues like sexuality and violence, sparked heated debates. The Bride and the Goodnight Cinderella stirred strong reactions from the audience, some of whom were visibly unsettled by its direct portrayal of gender-based violence. Despite the divisive opinions, the production’s powerful message resonated, especially in the context of ongoing global conversations around women’s rights and violence.

Moreover, logistical challenges also marked the festival, with some performers reportedly facing difficulties arriving on time due to the complex international travel situation. Nonetheless, the festival team managed to pull off a seamless event, and audience engagement remained high throughout the festival’s duration. ∙

Photo Peter Giodani

Sustainable Luxury

The New Frontier in the Adria Region

Sustainable luxury, once considered niche, is now becoming a significant trend, appealing to affluent travellers who seek not only exclusive experiences but also ethical ones

As the global travel industry moves toward more eco-conscious and responsible tourism, the luxury sector in the Adria Region is undergoing a transformation. Highend travellers today are not only seeking indulgence and exclusivity but also experiences that align with their environmental and ethical values. Sustainable luxury represents this new frontier, where travellers can enjoy the finest accommodations, services, and experiences, all while

Eco-friendly Accommodations and Green Architecture

Leading resorts such as Maslina Resort in Croatia are pioneers in this movement, incorporating green building designs that minimise their environmental footprint. These properties use sustainable materials, renewable energy sources, and waste reduction programmes. Resorts are also investing in eco-friendly water management systems and organic, locally sourced ingredients to support the surrounding communities.

Low-impact Travel Experiences

Sustainable luxury also extends to the guest experience. Private yacht charters in Montenegro are now promoting low-impact tours that focus on protecting marine life and reducing carbon emissions. Exclusive hiking tours through Slovenia’s pristine landscapes offer guests a connection to nature while following sustainable tourism practices that help preserve the environment.

minimising their ecological footprint.

For luxury businesses in the region, this shift is more than just a trend—it’s an essential evolution. From resorts and marinas to boutique hotels and wellness centres, companies are embracing green architecture, local sourcing, and conservation efforts. This new approach allows affluent visitors to enjoy the beauty and indulgence of the region without compromising its future.

By balancing sustainability with opulence, the Adria Region is setting a new standard in global luxury tourism, where each experience is designed to enhance not only the traveller’s experience but also the environment and local communities. Sustainable luxury offers a fresh perspective on indulgence, promising a deeper connection to nature and the cultural richness of the region while supporting longterm conservation and responsible travel practices.

Wellness with a Purpose

Wellness tourism in the Adria Region is also taking a sustainable turn, with luxury spas and wellness centres introducing treatments that use organic, locally harvested ingredients. Programmes at destinations like The Chedi Luštica Bay incorporate a holistic approach to sustainability, combining eco-conscious living with health and well-being. From organic skincare products to plant-based cuisine, guests are invited to embrace a lifestyle that nurtures both their well-being and the planet.

Eco-luxury in Gastronomy

Michelin-starred restaurants like Hiša Franko in Slovenia are incorporating sustainable practices into their culinary offerings, sourcing ingredients from local farms and promoting zero-waste cooking techniques. Exclusive wine tastings are now focused on biodynamic and organic wines from local vineyards, further elevating the gastronomic experience while reducing the environmental impact.

Supporting Local Communities

An essential part of sustainable luxury is supporting the local economy. High-end hotels and resorts are increasingly collaborating with local artisans, chefs, and farmers to create experiences rooted in the culture of the region. This not only offers a unique and authentic experience for travellers but also ensures that the benefits of tourism are felt by the communities hosting these luxury destinations.

Technology in Sustainable Luxury

Technology is playing a crucial role in enhancing sustainability in luxury travel. Smart energy systems and digital check-ins are making hotels more efficient and reducing waste. Luxury travellers are also embracing virtual reality tours to explore properties before booking, minimising unnecessary travel and the associated carbon footprint.

The Future of Sustainable Luxury in the Adria Region

As the demand for responsible travel continues to grow, the Adria Region is positioning itself as a leader in sustainable luxury. By combining cutting-edge technology, eco-friendly designs, and a commitment to local communities, luxury businesses in the region are paving the way for a new kind of indulgence—one that is both ethical and extraordinary. With a focus on conservation and low-impact experiences, the region ensures that future generations can continue to enjoy its natural beauty without compromise.

Sustainable luxury is no longer just a trend. It is the future of highend travel. The Adria Region’s commitment to blending luxury with eco-conscious practices is creating a new standard in the global travel industry. For those seeking indulgence that aligns with their values, this region is leading the way in providing experiences that are both sophisticated and sustainable. ∙

Porto Montenegro

Events

Energy Week Western Balkans 2024 Held

Energy Week Western Balkans 2024, held in Montenegro, brought together regional and international energy leaders, companies, investors, and policymakers to discuss the region’s critical energy transition. As the shift to renewable energy sources becomes inevitable and necessary, the complexity of the transition remains a key topic.

Slovenia’s Zois and Puh Prizes Awarded

This year’s prestigious Zois Prizes for lifetime achievements in science were awarded to Željko Knez, a professor of chemical engineering, and Ljubica Marjanovič Umek, a developmental psychologist. Knez is recognised for his work in separation processes and product engineering with high-pressure fluids, while Marjanovič Umek is honoured for her contributions to children’s cognitive and language development. Additionally, Igor Akrapovič, founder of the exhaust manufacturer Akrapovič, received the Puh Prize for his innovations in engineering and technology.

Regional Leaders Sign Agreement to Boost Female Leadership

Leading regional experts signed a Cooperation Agreement to empower women in the logistics sector. At the conference "Power of Joint Planning: Transport and Logistics for a Stable Regional Economy," held at the Chamber of Commerce of Serbia, more than 200 business representatives from Serbia, Croatia, Slovenia, Italy, and Greece gathered. The agreement was signed by the Serbian Chamber of Commerce, Confindustria Serbia, the Slovenian Business Club, the Croatian Chamber of Commerce Representation in Serbia, and the Hellenic Business Association of Serbia.

Events

Slovenia’s Potential to Lead High-Value Investments

At one of the latest AmCham Slovenia events, experts discussed the country’s potential to attract high-value-added investments. They highlighted the country’s strengths in talent management, niche businesses, high-tech exports, and a robust R&D culture. Speakers emphasised that, with the right strategy, Slovenia could lead the region. Initiatives like Biotech Hills are already positioning Slovenia as a hub for biotech innovation, further enhancing its investment appeal and showcasing the nation’s ability to foster growth in advanced sectors.

Travnik Cheese Gains Protected Geographical Status

Travnik cheese, a traditional delicacy from Bosnia and Herzegovina, is set to receive official certification of protected geographical origin, a move expected to significantly enhance its market position and strengthen its regional identity.

Zagorske Gore Set to Become Northern Croatia’s First Protected Nature Park

The scenic Zagorske Gore region in northern Croatia, known for its rich biodiversity and cultural heritage, is on the verge of becoming the area’s first protected Nature Park. Spanning over 300 square kilometres and covering five towns and nine municipalities in the Varaždin and Krapina-Zagorje counties, the area has been proposed for official protection.

Croatian Prison Beekeepers Strike Gold and Silver Awards

Croatian prison’s beekeeping programme has garnered gold and silver awards at the 16th international organoleptic honey eval-

uation in Vukovar. Lepoglava Prison, located in northern Croatia, won gold for its acacia honey and silver for its chestnut honey, competing against over 236 beekeepers from Croatia, Serbia, Bosnia and Herzegovina, and North Macedonia. The beekeeping initiative introduced a decade ago, is part of a broader rehabilitation effort at Lepoglava Prison, offering inmates a path to vocational skills.

AI_4_LIFE: Biotech Future Forum Held in Belgrade

The third International Conference AI_4_LIFE: Biotech Future Forum, brought together more than 1,000 participants from over 15 countries, as well as 66 international speakers, including representatives of governments, academia, scientific and research institutions, and industry. Organised by the Government of Serbia in

Vatican Greenlights Pilgrimages to Medjugorje

The Vatican has officially granted approval for Catholic pilgrims to continue visiting Medjugorje, a small village in southern Bosnia, where since the 1980s, children have claimed to see visions of the Virgin Mary. In a move that acknowledges the importance of the site for millions of worshippers, the Vatican stopped short of declaring the reported apparitions as supernatural or authentic but allowed devotion to proceed.

Carpaccio Masterpiece Returns to Koper Cathedral

A stunning Renaissance painting by Venetian master Vittore Carpaccio has been unveiled following an extensive five-year restoration. Believed to have been created in 1516 during

collaboration with the National Assembly of Serbia, the Ministry of Science, Technological Development and Innovation, the Office for IT and eGovernment, the Center for the Fourth Industrial Revolution, the World Economic Forum, and the UNDP, with support from the BIO4 Campus.

Carpaccio’s time in Koper, the four by twoand-a-half-metre canvas was meticulously restored by the Ljubljana Institute for the Protection of Cultural Heritage.

Six Croatian Destinations Among Top 100 Sustainable Tourism Practices

In a major boost for Croatia’s growing eco-tourism industry, six destinations have

been featured in the prestigious Green Destinations list of the world’s top 100 sustainable tourism practices for 2024. The destinations—Cres, Dugi Otok, Ivanić Grad, Lika Destination Cluster, Mali Lošinj, and Plitvice Lakes National Park—were selected for their innovative approaches to sustainability.

Sarajevo Among Finalists for National Geographic Travel’s ‘Best in the World’

Sarajevo, the capital of Bosnia and Herzegovina, has been named one of the finalists in National Geographic Travel’s prestigious “Best in the World 2025” category, chosen by readers. Alongside Sarajevo, the other contenders include Ho Chi Minh City (Vietnam), New Orleans (USA), Bodrum (Turkey), and Cuzco (Peru).

GloryPaddling in Tacen

Against the odds, Tacen bounced back from devastating floods to host the 2024 Canoe Slalom European Championships, delivering not only thrilling races but a powerful story of resilience and community spirit

The 2024 ECA I Feel Slovenia Canoe Slalom European Championships in Tacen, Slovenia, was a sporting spectacle wrapped in a story of resilience and determination. Held from May 15 to May 19, it was much more than just a championship - this event represented the indomitable spirit of the Slovenian people who rebuilt their beloved venue after devastating floods just nine months earlier. The backdrop for this European showdown was not just the roaring waters of the Sava River but a community that came together to make this event possible despite overwhelming odds.

LOCATION

The championship takes place in Ljubljana, on the renowned rapids of the Sava River at Tacen, a premier venue for canoe slalom, which has hosted top-level competitions since.

A Course Steeped in History

Tacen, nestled near Ljubljana, is no stranger to international canoe slalom events. The Sava River has long provided the perfect natural rapids for canoe slalom, its tricky twists and turns testing the mettle of even the most seasoned athletes. The course is legendary in the canoeing world, having hosted the European Championships in 2005 and 2017, along with numerous World Cup events. With its blend of natural and man-made obstacles, Tacen is the kind of course that brings out the best (or worst) in athletes, demanding every ounce of skill and focus.

2023: When the Floods Came

Everything was set for a renovation of Tacen’s upper section in late 2023, but nature had other plans. In August 2023, relentless floods ripped through the area, washing away critical infrastructure and leaving the course in tatters. In a matter of hours, years of plans quite literally fell into the water. What followed was a herculean effort to rebuild.

By the time the dust settled (or rather, the water receded), Tacen looked like a battlefield. One of the most iconic parts of the course—a small greenhouse at the top of the stands—was reduced to rubble, and much of the electrical and optical wiring lay in ruins. Entire sections of the course had to be rebuilt from scratch, including the gates system, a new metal bridge, and temporary stands to replace the ones that had been swept away.

From Devastation to Celebration

Fast forward to May 2024, and Tacen was transformed. The European Championships went ahead as planned, with athletes and spectators alike marvelling at the resilience of the Slovenian organizers. The venue had been polished up for the event with a new LED screen, upgraded stands, and a revitalized lower section of the course. Yes, the course had taken some battle scars, but the fresh concrete and gleaming structures told a story of determination and resourcefulness.

Athletes from across Europe descended on Tacen, eager to tackle the unforgiving Sava River. The kayak cross

events were some of the highlights of the championship, with Swiss paddler Alena Marx grabbing not one but two gold medals—a remarkable feat. Marx, whose cool under pressure made her a standout, won in both the individual and team events. The men’s side saw British canoeist Joseph Clarke take top honours, further solidifying his position as one of Europe’s elite paddlers.

The event also featured team and individual kayak slalom events, with razor-thin margins separating athletes as they navigated the intricate gates of the course. The Supersport 300 and Stock 1000 categories brought their own share of drama as young athletes jostled for supremacy in one of Europe’s most unpredictable rivers. Tacen’s natural rapids, always a tricky beast, added an element of excitement—and a touch of chaos—to the races.

SLOVENIAN SUCCESS

Slovenia’s canoeists have a strong tradition of excelling on their home course, having won 37 medals, including 14 golds, at this venue over the years.

More than Just a Race

But let’s be honest: this year’s European Championships was about more than just the racing. It was a testament to the human spirit’s ability to rebuild, to keep paddling through even the toughest rapids. Tacen’s revival wasn’t just about concrete and LED screens—it was about community, with local businesses and volunteers pitching in to bring the venue back to life. The funds from ticket sales were reinvested into rebuilding the site, making it a self-sustaining effort. The championship also underscored how sport can become a symbol of resilience, reminding us that recovery is possible even after the most devastating setbacks.

YOUNG TALENT

The 2024 competition features rising stars like Lan Tominc, the Youth Olympic champion, and Žiga Lin Hočevar, a promising talent who secured two silver medals at the Junior European Championships.

A Future of Hope and High Waters

As the dust settles and the waters calm, Tacen’s future is one of hope. The scars left by the floods are a reminder of nature’s power, but they also serve as a badge of honor for what the Slovenian canoeing community has accomplished. The European Canoe Slalom Championships 2024 was a triumph not just of sport but of human willpower—a reminder that sometimes, the biggest victories happen off the course.

NEW DISCIPLINE

The event will feature Kayak Cross, the newest discipline in wildwater sports, which will debut at the Paris 2024 Olympics, further enhancing the competition’s significance

ELITE PARTICIPATION

Athletes from 32 countries, spanning Europe, North and South America, Oceania, Asia, and Africa, compete in this event, showcasing the international prestige of the competition.

Looking Forward

For those lucky enough to attend the 2024 edition, the memory of those thrilling moments will be etched in their minds, but so too will the memory of Tacen’s comeback. The event was a perfect mix of high-speed thrills and heartwarming stories of community effort. With this year’s chapter now written, Tacen’s organizers look ahead to future championships, hoping to build on the momentum and keep the venue at the forefront of European canoeing.

Upcoming Events

The 3rd Wine Vision by Open Balkan

Serbia: Belgrade 21-24 November

The third-largest regional wine fair, Wine Vision by Open Balkan, will be held in Belgrade from 21-24 November. Preparations have been underway to surpass last year's success, which featured over 600 exhibitors and showcased thousands of wine labels, spirits, and domestic food products. Celebrating the wine culture of Serbia, N. Macedonia, and Albania, the fair has become the fourth-largest in Europe.

New Year 2025 Celebration

Montenegro: Kotor, Herceg Novi 30 December-2 January

Montenegro is set to host major music stars for its New Year’s Eve celebrations. In Kotor, Dejan Petrović and his Big Band will perform on 30 December, followed by Zabranjeno Pušenje with Sejo Sexon on 31 December, Dubioza Kolektiv on 1 January, and Parni Valjak with a new lead singer on 2 January. Numerous Montenegrin bands will also feature over 4 nights. In Tivat, Zdravko Čolić will perform on New Year’s Eve, with Jelena Rozga following.

Skopje Drum Festival 2024

North Macedonia: Skopje 3 November

The Skopje Drum Festival 2024 will gather top drummers and percussionists from around the world in North Macedonia’s capital in mid-November. This vibrant festival features performances, workshops, and masterclasses for both enthusiasts and professionals. It highlights diverse drumming styles and deepens understanding of rhythm’s role in global music traditions, making it a must-attend event for drumming and live music lovers.

OBALA Ultra-Trail Brings Together Running Enthusiasts

Slovenia: Izola, Koper, Piran and Kozina 1-3 November

Fom 1 to 3 November, the OBALA 2024 Ultra-Trail will take place. This sports event connects Izola, Koper, Piran, and Kozina. The event’s vision and purpose are to bring people together, connect the four destinations, and showcase the beauty of Slovenian Istria to the world. Participants can enjoy outdoor activities, running, and plenty of fun in nature.

Advent in Zagreb Not To Be Missed

Croatia: Zagreb

14 December

Zagreb is preparing to defend its title as the Advent capital of Europe, aiming to impress visitors with its blend of lights, and holiday cheer. The city’s Advent is renowned for its stunning decorations, with Ban Jelačić Square, Manduševac Fountain, and Zrinjevac and Maksimir parks transformed into festive hubs. Various stages across the city will host concerts, theatre performances, dance shows, and folk music.

Medieval Winter Days

Slovenia: Celje Castle 6 and 7 December

On 6 and 7 December, Celje Castle will come alive with medieval tales. The courtyard beneath Frederick’s Tower will glow with fire and light as acrobats unveil a magical circus world. Visitors can enjoy enchanting stories, acrobatic performances, fire shows, dance displays, sword fighting exhibitions, and a street of medieval crafts, all accompanied by the aromas of medieval cuisine.

Jazz Fest Sarajevo 2024

Bosnia and Herzegovina: Sarajevo 6-9 November

The international Jazz Fest Sarajevo 2024 will take place from 6 to 9 November, featuring artists from the US, Spain, Cuba, Mali, Congo, France, Austria, North Macedonia, Montenegro, Croatia, Bosnia and Herzegovina, and New Zealand. The festival will open on 6 November at the National Theater of Sarajevo with a performance by the Macedonian National Jazz Orchestra and Rambo Amadeus. This year, it will also reintroduce a regional educational program for musicians, led by Damir Imamović, bringing together 30 participants for lectures, masterclasses, and workshops with musicians from the US, Italy, Bosnia and Herzegovina, Serbia, and Belgium.

Tirana International Fair 2024

Albania: Tirana 6-9 November

The Tirana International Fair 2024 will take place in Albania’s capital from 6-9 November. The Albanian market is increasingly attractive, with many forming partnerships and planning investments. The fair offers domestic exporters a chance to showcase their products, strengthen existing relationships, and establish new business connections with partners from Albania and other countries.

Upcoming Events

Interliber International Book Fair

Croatia: Zagreb

12-17 November

The Interliber International Book Fair, one of Croatia's premier literary events, will gather publishers, authors, and readers in a vibrant celebration of literature in Zagreb. Showcasing new releases, author panels, and book discussions, the fair invites literary enthusiasts to explore a range of genres and styles. Alongside traditional book signings, the event will feature creative workshops and interactive sessions, offering a full, immersive experience for all book lovers.

Museum Month

Bosnia & Herzegovina: Sarajevo 1-30 November

Sarajevo is hosting its third annual Mjesec Muzeja (Museum Month) at the Historical Museum of Bosnia and Herzegovina from November 1st to 30th. The month-long celebration commemorates the museum’s founding and showcases Bosnia's diverse heritage through special exhibitions, educational programs, workshops, and live cultural performances. Visitors will find themselves immersed in Bosnia’s history, from its medieval roots to its more recent chapters, and enjoy exclusive guided tours and talks with curators. This year’s event is expected to draw history enthusiasts and the general public alike, offering a deeper connection to Bosnia’s cultural treasures in a uniquely interactive experience.

Maslinijada to Celebrate Olive Oil Excellence

Montenegro: Bar 23-24 November

The 22nd Maslinijada in Bar will showcase the finest olive oils of 2024, with awards for top extra-virgin monosort and blended oils. Expert judges from the region will also recognise achievements in grove maintenance, young plantation development, and revitalisation of old olive groves. Celebrating Montenegro’s olive-growing heritage, the event remains a highlight for both local producers and olive oil enthusiasts.

Portonovi the address of your new home by the sea