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. Tourism accounts for close to 30 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. After the conclusion of the remaining four phases, the highway will ultimately connect to 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 completed a two-way underwater electricity cable to export power to Italy in December 2019 that enables both imports and exports of electricity. The 850 million dollar project included a 433-kilometer-long tunnel approximately 1,200 meters below the Adriatic Sea surface.. Other energy projects include the ecologically controversial refurbishment of the coal-fired thermal plant in Pljevlja in partnership with People’s Republic of China (PRC) company Dongfang Electric Corporation that began in April 2022, as well as the development of a 55-megawatt wind power plant in Gvozd, a project supported by the European Bank for Reconstruction and Development (EBRD) with construction planned to begin in 2023. 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.
Information and Communication Technology (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 ($105,480) 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.