Montenegro has actively pursued foreign investment to support economic development after independence. The government liberalized regulations and provides incentives across sectors like energy, infrastructure, tourism and manufacturing.
As a result, net FDI inflows have grown substantially, reaching over 20% of GDP of Montenegro. Major investors come from the EU, China and Russia attracted by relatively low costs and strategic location at the Adriatic crossroads.
Logistics and transport are other promising areas, helped by improving connectivity to ports, airports and road/rail infrastructure upgrades of Montenegro. Developing light industry and high-value manufacturing is also a priority.
Key opportunities exist in expanding Montenegro’s energy generation from renewables like hydro, wind and solar. Tourism real estate and facilities continue attracting investment given the untapped potential.
Montenegro offers various foreign investment and business opportunities, including investing in sustainable electricity generation projects, trading shares and bonds on the small stock exchange, and investing in large-scale infrastructure projects such as airports, road networks and rail lines.
The country’s business-focused economy, low corporate tax rate, and strategic location along the Adriatic coast make it an attractive destination for foreign investors. Montenegro is also a safe country to invest in, with political and monetary stability, a legal framework for investment reformed according to the EU, and favorable tax policies.
Small businesses in Montenegro’s financial services sector face challenges such as high real interest rates, operating costs, nonperforming loans, lack of economies of scale, complex international regulations and limited access to information and support.
Despite these challenges, the government of Montenegro is working to create a business-friendly environment and provide incentives for new businesses to establish in Montenegro, which could contribute to the growth of small enterprises and the overall economy.
Montenegro aims to transition towards higher value industries and services. But challenges remain around skills shortages, bureaucratic inefficiencies and corruption. Continued reforms are needed to strengthen governance and the investment climate.
