Montenegro’s Prime Minister, Milojko Spajić, has announced a significant investment initiative involving Emirati businessman Mohamed Alabbar and the United Arab Emirates (UAE). The UAE government is set to guarantee a project proposed by Alabbar, marking the first instance of such state-backed investment in Montenegro. Spajić emphasized that this level of governmental involvement ensures transparency and minimizes corruption risks.
The forthcoming intergovernmental agreement with the UAE, expected to be signed soon, offers more comprehensive terms than the previous accord, which expired in 2022. Spajić, who is currently on a four-day visit to the UAE, highlighted that the new agreement aligns with standard international practices and includes clauses related to tender procedures, similar to those in agreements with countries like France, Italy, and Hungary. He assured that Montenegro’s Law on Prevention of Money Laundering will be applied rigorously in all cases.
The proposed project envisions investments exceeding €30 billion, encompassing the construction of hotels, shopping malls, the restoration of the Old Town, and the establishment of prestigious faculties for IT and maritime studies. The Montenegrin government will hold a co-ownership stake, allowing the state to receive dividends that could fund sectors such as healthcare and education. Spajić stressed the importance of welcoming such investors, noting that many countries, including the USA, EU member states, Norway, and Switzerland, actively seek similar investments.
However, the initiative has faced criticism. Mehmed Zenka of the Democratic Union of Albanians (DUA) expressed concerns that leasing a 12-kilometer stretch of Velika Plaža for 99 years could adversely affect the local community in Ulcinj, particularly if local authorities are excluded from decision-making processes. Spajić responded that a long-term lease allows investors to recoup their investments without the pressure of short-term returns.
Dritan Abazović of the United Reform Action (GP URA) accused the government of “selling off” Montenegro and questioned the transparency of the proposed agreement, suggesting that such a significant investor would typically enter the market through more formal channels. Spajić countered that the previous administration failed to renew the framework agreement with the UAE, which lapsed during Abazović’s tenure.
Regarding Montenegro’s financial health, Spajić reported that the state treasury holds over €1 billion, with a budget surplus ensuring that no borrowed funds are allocated for salaries, pensions, or social benefits. He noted that the net public debt has decreased from approximately 90% to around 50% of GDP. The government plans to repay nearly €3 billion in loans over the next two years, aiming to reduce debt incurred before 2020. Spajić emphasized that future collaborations with foreign investors will focus on joint ventures, ensuring long-term dividends and benefits for Montenegro.
On the topic of airport concessions, Spajić acknowledged the prolonged process and the need for prompt development. He stated that while the government is open to concession agreements if the terms are favorable, any decision will prioritize the state’s interests, with a guaranteed minimum of 10% revenue share and priority in payment collection, regardless of the airports’ operational performance.
