Copyright by obeliskinternational.com

September 2007

Foreign Direct Investment in Montenegro

Total foreign direct investment in Montenegro in 2006 reached a record €644 million. In per capita terms, Montenegro topped the list of FDI in Eastern and Central Europe, ahead of Estonia, Croatia and Slovakia. A good proportion of this investment (€257 million) was in real estate, with the coast in particular enjoying a tremendous boom. Many Montenegrins are choosing to sell their land on the coast, allowing them to invest in flats in Podgorica.

Foreign Direct Investment in comparison

Country

FDI inflow 2006 (mil EUR)

Per capita (EUR)

Montenegro

644

1,031

Estonia

1,282

954

Croatia

2,838

639

Slovakia

3,324

617

Bulgaria

4,104

533

Hungary

4,874

484

Serbia

3,504

471

Czech Republic

4,752

463

Romania

9,082

421

Poland

11,093

291

Slovenia

303

151

Macedonia

279

137

Bosnia Herzegovina

338

88

Albania

259

82

Source: WIIW, 2007

While there are claims that "the Russians are buying up Montenegro", there are obviously many other investors as well. English and Irish citizens are buying real estate; Austrian and Slovene companies are investing in tourism; Deutsche Telecom has bought Montenegrin Telecom through its Hungarian subsidiary; and French, Austrian, Slovene and American companies have all invested in the banking sector. Indian steel magnates Vinod and Pramod Mittal announced in late spring 2007 plans for investments of $1.1 billion in lignite mines, including new mines near the northern town of Berane and a new power plant.

Further reading:

Montenegro
Montenegro and the EU
Return to Europe film
ESI Montenegro reports
Montenegro picture stories
Background information
Literary walk
Places
People
Vijesti
Vijesti
We thank the Montenegrin daily Vijesti for access to their photo archive.