Montenegro must improve its business environment if it wants to attract foreign investment that creates jobs, raises productivity and supports long-term economic growth, according to economic analyst Mirza Mulešković.
His comments follow the government’s proposal to introduce a formal screening mechanism for foreign direct investment. The planned legislation is intended to protect national security and strategic economic interests while aligning Montenegro with European Union standards.
Under the proposal, investors would provide information about ownership, ultimate beneficiaries, financing sources, business activities and the expected effects of a project. The Ministry of Economic Development would have 45 days to determine whether a more detailed review is necessary.
Mulešković welcomed the initiative but warned that its success would depend on implementation and stronger institutional capacity. Although foreign investment has significantly influenced Montenegro’s economy over the past two decades, he said its structure has deteriorated in recent years, with most capital flowing into property.
EU membership could improve both the volume and quality of investment, but only if Montenegro offers predictable regulation and efficient administration. Mulešković called for greater emphasis on productive sectors such as agriculture, information technology, energy and sustainable tourism.
Investment screening should be based on transparent and equal rules, assessing the risks of each project rather than an investor’s country of origin.
