Montenegro’s President Jakov Milatović raised concerns about the recently signed tourism and real estate development cooperation agreement between Montenegro and the UAE. The agreement, which was signed in Abu Dhabi by Montenegro’s Prime Minister Milojko Spajić and UAE’s Vice Prime Minister and Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan, may conflict with Montenegro’s Constitution and competition laws, Milatović pointed out.
Key concerns include the potential for the agreement to violate the constitutional prohibition against distorting competition and creating monopolies, as well as its possible incompatibility with the EU’s Stabilization and Association Agreement (SAA), which prohibits state aid that distorts competition. Milatović also questioned the provision in the agreement that allows for direct contracts with investors, which could undermine free competition in tourism and real estate sectors.
Another issue raised by Milatović is the potential impact on public property management. He emphasized that any lease of state property must comply with the Law on State Property, which allows direct contracts only if previous public calls fail.
Milatović also noted that the agreement might impose unknown financial costs on Montenegro, which have not been accounted for in the country’s fiscal plans, particularly regarding land provision and necessary public infrastructure investments.
He called on relevant authorities to clarify these issues, ensuring that decisions are made transparently, in compliance with the law, and in alignment with Montenegro’s EU integration goals.
