With a new president and parliament – and a new Bar Association President and Management Body – the elections' results still hold the front page for lawyers in Montenegro, while the country plays to its strengths with energy, tourism, and real estate all thriving, according to Law Office Vujacic Partner Jelena Vujisic.
“The election cycle in Montenegro slowed down business developments to some extent,” Vujisic begins. “We have a new president and parliament, but the formation of a new government is still expected, and the markets have been cautious while waiting for it. We expect legislative and regulatory efforts to likely resume in September or October.” According to her, this should help restore confidence and provide clarity for businesses.
And the Bar Association of Montenegro recently held elections of its own. “The elections resulted in the appointment of a new president and a new management body. It's worth noting that the previous president's mandate was extended for three years, since 2020, due to the challenges posed by the COVID-19 pandemic,” Vujisic explains. “Going forward, we expect positive developments and incentives that will further enhance the working engagements of lawyers, both in court and administrative settings.”
Turning to economic matters, Vujisic reports on important investments in Montenegro's renewable energy sector. “The EBRD has supported Elektroprivreda Crne Gore, the national electricity and utility company, with EUR 82 million for the Green Gvozd project. This project is an extension of the Krnovo wind farm, Montenegro's first wind energy project, which we also worked on,” she explains. Additionally, there is an “interesting project called ‘Solary’ that aims to further develop the solar power sector in the country. We anticipate more wind and solar projects in the near future, leading to the overall development of Montenegro's energy sector.”
And the tourism sector stands to be enriched as well. “Starting on July 13, an important tourist attraction will begin its operations in the City of Kotor,” Vujisic says. “A cable car will link Kotor to the Lovcen National Park, providing not only a convenient connection between the two locations but also offering impressive views of Boka Bay. This project has been in the works for almost two decades, and its opening coincides with the National Day of Montenegro,” she adds.
Aside from the energy and tourism sectors, real estate has also been on the up and up in the Adriatic country. “The real estate market in Montenegro is currently experiencing a boom, particularly along the seaside. There has been a significant increase in interest from German investors this year, overtaking Turkish and Ukrainian investors who held the top spots in 2022,” Vujisic reports. “The lower costs of living and real estate, combined with a favorable climate, are attracting individuals and companies to take up residence and establish businesses in our country. On the other hand, Russian citizens still face difficulties when trying to open bank accounts in Montenegro, so they are less present overall.”
Finally, Vujisic reports that Montenegro is feeling the impact of mergers taking place across the region, with the Italian and Serbian markets standing out. “Those required notifications of the local regulatory body, so the legal market has been experiencing a kind of a spillover effect.” At the same time, “considering that the courts in Montenegro collectively take a summer break in August, people are busy wrapping up projects and cases before then. But we do expect a more relaxed pace of work come August,” she concludes.
