In Montenegro in the last year there were over 600 millions of euros of foreign investments. About 53% were related to purchase of real estates, 39% to investment in enterprises and banks etc.
So, there aren’t, or there are very few direct foreign investments. That means that an investor comes, starts a business, employs new workers etc. That is only the case with Promonte, Hip alpe adria bank and with individuals who have bought hotels, ruined them and built new ones (and there are also just few of them).
Greenfield investments are the ones we need, and without which there are no new working places and development of economy.
Investments through privatization and real estates have their good sides (entry of the money, modernization, image etc) but they also have a lot of bad sides.
For example numerous are privatization companies which proclaim extra working force which they have sent with dismissal wage home. That is the case with Telekom, KAP, Jugopetrol. On the other hand, buyers of real estates no one can force o build something which will be in the interest of Montenegrin tourism, and which will bring new working places, improvement of the offer etc. Someone will say that Montenegro is a small market for someone to start building factories and new businesses.
It is true, but at the same time it has liberal regulations, low taxes, good geographic position, unused tourist locations on the sea and in the mountains and much more.
Why then there are no foreign investments, if you leave out the sale of the companies, which are, jack pot for foreigners?
I claim that the main reason is the lack of reign of Law.
If someone buys a hotel and has to pay communal taxes additionally, or cannot get a permit for construction, if you take over a factory so the buyer later sees that he is not the owner of the land, if you are first ranked on tender and parliament votes that the tender has to be nullified.
Is it necessary to mention the cases when the owner couldn’t get what he bought. And let’s add to all of that administration.
We know that to the reign of law we have to come through a longer period, but it would be god if that process were speeded up. It would be a waste to have bad rumors spread about us in investments circles.