Tourism

Montenegro’s attractive and unique environment, including 300 kilometer-long coastline and its spectacular mountainous northern region, is the engine that drives the tourism sector which accounts for close to 25 percent of GDP.  The sale of formerly state-owned land has triggered a wave of foreign investment in large-scale tourism and hospitality centers.
Infrastructure
Montenegro is planning major upgrades to its airports, road network, and rail lines.  In 2014, the Government of Montenegro selected the Chinese company China Road and Bridge Corporation (CRBC) to construct a 41-kilometer section of the national highway that opened in July 2022. This section connects Podgorica with the north of the country, and after the conclusion of the remaining four phases, with the Serbian border.  Construction of the first phase cost the country around USD 1 billion.  In addition, the Government of Montenegro has discussed plans to develop the Adriatic-Ionian Highway (the so-called “East-West” Corridor), which will include approximately 105 kilometers of highway connecting Croatia, Montenegro, and Albania. 

Energy

The Government of Montenegro began operation of an undersea electricity transmission cable to Italy in December 2019. Additionally, there are several ongoing renewable and fossil fuel energy projects around the country, including an ecological reconstruction of the existing block of the coal-fired thermal plant in Pljevlja; development of a 170 MW hydropower plant on the Komarnica River, and construction of a 200 MW solar power plant in Ulcinj. In late 2013, Montenegro invited international oil and gas companies to bid on licenses to explore and develop offshore oil and gas blocksbased on seismic data that showed favorable conditions for hydrocarbon deposits off Montenegro’s deep-water coast. The GoM has signed concession agreements with two consortia: the Italian-Russian consortium Eni/Novatek for four blocks and the Greek-British consortium Energean oil/Mediterranean oil & gas for one block. The exploratory offshore oil and gas drilling began in March 2021, with preliminary results indicating that the drill site is not feasible for exploitation.  Wind energy represents a growing source of renewable energy production, with wind farms at Krnovo and Mozura in operation, and several new projects in development.

ICT Sector

The Montenegrin ICT sector is becoming one of the key sectors for the country’s economic recovery.  Innovative Montenegrin ICT companies and start-ups are increasingly entering the international market and have showcased promising income and job creation forecasts.  Montenegro has fully harmonized its ICT regulations with the EU’s regulatory framework, which provides investors with a stable investment environment.   Montenegro’s strategic goals in ICT are identical to those defined by the Digital Agenda 2020 of the European Commission and the European Union’s Gigabit Society policy targets by 2025.  The well-developed telecommunication sector, with three international players present, has begun rolling out 5G technology.  Investments in IT/cyber security and data protection are expected to grow.  The country’s innovation law is in place and, once implemented, will provide a boost to the startup ecosystem, as companies can invest up to €100,000 of the capital gains taxes they owe into a startup of their choosing in exchange for equity.  U.S. technology and solutions firms are well positioned for the Montenegrin market, with opportunities in software development, hardware, digitalization and e-services, and ICT education.