Mag. Arijana Nikolić Vučinić, Executive Director of the Foreign Investors Council in Montenegro
From institutional stability to the green economy – how improving the business environment shapes the investment climate
Mag. Arijana Nikolić Vučinić is the Executive Director of the Foreign Investors Council in Montenegro – the only association that exclusively brings together foreign companies, serving as a vital bridge between international capital and the domestic economy. The Council’s members contribute around 23 percent of Montenegro’s gross domestic product, employ 6,000 people, and lead key reform and development initiatives across the country.
Her professional journey is marked by extensive experience in public administration, international projects, and education. She graduated and earned her Master’s degree from the Faculty of Economics at the University of Montenegro, and throughout her career held numerous senior positions in the Ministries of Economy, Labour, and Education. As Montenegro’s chief negotiator for EU accession chapters 2 (Free Movement of Workers) and 19 (Social Policy and Employment), she directly contributed to the country’s European integration process, gaining a profound understanding of the economic and social reforms required to achieve this strategic goal. Her long-standing engagement in reforms and connecting the public and private sectors has given her a unique perspective: she understands how decisions and policies are translated into real-world practice and how they impact society and the economy. Today, she applies that experience to enhance cooperation between institutions and investors, building a more stable, transparent, and predictable business environment, while strengthening Montenegro’s international reputation as an attractive investment destination.
How would you describe Montenegro as an investment destination compared to the rest of the region? What advantages and risks would you highlight?
Montenegro remains an attractive destination for investors, but it is now at a stage where it must work more decisively on strengthening institutional stability and predictability. The regional competition in attracting foreign investors is becoming increasingly intense – and I believe that can serve as an additional incentive for us. According to data from the Foreign Investors Council Report on Foreign Direct Investments (2018–2024), Montenegro has maintained a high overall level of investment during this period, but the structure of those investments has changed. In 2018, productive investments – those that directly generate economic growth and create new jobs – accounted for more than 35 percent of total inflows. By 2024, their share had dropped to only 12 percent, accompanied by an increase in real estate sector investments. Today, we must acknowledge that it is no longer enough to simply talk about investment potential – it is undeniable and widely recognized. What truly matters now is the level of support credible foreign investors can expect. That support lies in removing business barriers, which the Council has been identifying and addressing for over 15 years through its flagship publication, the White Book. The White Book highlights concrete obstacles and provides practical recommendations for overcoming them. I am pleased to announce that the 15th edition of the White Book will be presented at the end of November, when we will jointly review the barriers that continue to slow progress – but also showcase examples that prove how dialogue and cooperation can deliver tangible results.
Which sectors in Montenegro currently attract the most attention from foreign investors, and why?
One of the key factors limiting effective investment planning and policy management in Montenegro is the absence of a comprehensive system for tracking foreign direct investments (FDI) by sector. Unlike most countries in the region, Montenegro still lacks a precise statistical model that would allow for detailed monitoring of investments across different branches of the economy. Establishing such a system would be of great importance – it would enable clearer trend analysis, identification of sectors with the highest potential, and targeted policy measures to stimulate productive investments. Based on the available data, the largest inflows still go into tourism and real estate, yet there is growing interest in energy, renewable energy sources, digital services, and the IT sector. According to the Council’s analyses, these areas offer the strongest potential for growth and for creating quality jobs. It is particularly encouraging that over the past two years there has been a noticeable rise in interest in green and sustainable projects – a direct response to global trends, but also aligned with Montenegro’s priorities on its European path.
How do current regulations and administrative procedures facilitate or hinder the entry of foreign companies? Where do you see room for improvement?
Montenegro’s regulatory framework is increasingly aligned with European Union practices, which represents an important step forward. However, administrative efficiency remains one of the most frequently cited challenges in the market. Our member companies often point to frequent changes in legislation, insufficient transparency, inconsistency, and slow procedures – particularly in areas such as permits, taxation, and company registration processes. In response, through the Council’s White Book, we have for years been proposing practical solutions – from digitalization of public administration and simplifying procedures, to strengthening institutional capacity and enhancing public sector accountability. Progress is visible, as evidenced by a modest increase in Montenegro’s ease of doing business index in 2024. Still, for the country to become more attractive to investors, it is essential to ensure a consistent and reliable regulatory environment. It is also worth noting the practice of involving the business community too late in legislative changes that directly affect their operations. Encouragingly, the level of transparency and cooperation has been increasing in recent years, and this positive trend should continue to be strengthened.
How do global trends – such as the green economy, digitalization, or geopolitical shifts – shape investment strategies in Montenegro?
When we talk about global processes that influence economic policies and investment decisions, although they are often referred to as “trends,” I would rather describe them as global commitments. These are collective efforts to stop harmful practices, preserve resources, and ensure sustainable and balanced growth. The green economy, digital transformation, and responsible use of natural resources are no longer a matter of choice – they are an obligation for every country that seeks long-term stability and competitiveness. The Foreign Investors Council, together with the Government of Montenegro, the European Bank for Reconstruction and Development (EBRD), and the Delegation of the European Union, was a signatory of the Investment Conference Declaration “Smart Growth, Green Future: Accelerating Investments in Montenegro,” held in Luštica.That declaration clearly defined the country’s development priorities, with green and digital transition remaining high on Montenegro’s list of strategic goals. The Council will continue to contribute to this process through closer cooperation with institutions, signatories, and the wider business community, to help ensure that these initiatives are effectively implemented in practice. Naturally, geopolitical shifts also have a strong impact on investment flows – from the pandemic to, unfortunately, ongoing wars and security crises that reshape the global economy and investment priorities. Montenegro is not immune to these influences; we feel them through market fluctuations, supply chain disruptions, and inflationary pressures. Yet, the size and structure of our market have, in some respects, proven to be an advantage, allowing us to adapt more quickly to change.It is precisely this resilience and agility that could become one of Montenegro’s key developmental strengths in the years ahead.
What would be your key advice to international companies seeking long-term success in Montenegro?
Think long-term and build partnerships.Montenegro offers many advantages – openness, a stable currency, favorable tax rates, and proximity to the European Union. However, the success of any investment ultimately depends on a company’s willingness to invest in people, knowledge, and the local community. The most successful investors are those who are ready to collaborate with institutions, engage in dialogue, and contribute to reforms. That is precisely why the Foreign Investors Council exists – as a platform connecting the business community and the state in a shared goal of creating a better, more predictable, and sustainable business environment. Today, Montenegro stands on the threshold of European Union membership, yet we still face challenges that require dedication and cooperation. In this context, I would like to see our country’s future partners follow the example and vision of credible foreign investors who have been present here for more than two decades – those who have built projects that endure, contribute to the community, and serve as models of sustainable and successful business practices. Such partnerships bring value both to investors and to society as a whole.
How important is regional cooperation for strengthening Montenegro’s investment climate, and how does it influence foreign investors’ decisions?
Regional cooperation plays a crucial role in creating a stable and predictable business environment. Investors increasingly view the Western Balkans as a single market, so the level of regulatory alignment and connectivity between countries directly affects their perception of security and trust. The countries of our region share a common heritage – but also similar challenges, from administrative barriers and demographic trends to the ongoing digital and green transitions. This is why I believe we can learn from one another and, through the exchange of experiences, find practical solutions more efficiently. In that sense, regional cooperation is not merely a political issue, but an economic tool that enhances competitiveness and strengthens investor confidence. In this regard, I see the European Commission’s Growth Plan for the Western Balkans as a valuable mechanism for deeper economic integration and for preparing the region’s countries for EU membership.
Where do you see Montenegro in the next five to ten years in terms of attracting foreign investment?
Expectations are that by 2028, Montenegro will become a member of the European Union, which will inevitably transform our position when it comes to foreign direct investment (FDI). Croatia’s experience has shown that EU membership can significantly increase investor confidence, stimulate investments in infrastructure, energy, and innovation, and open access to larger European funding mechanisms. Montenegro is already implementing an investment cycle worth more than three billion euros, while at the same time undertaking systemic reforms aimed at creating a more attractive and predictable business environment. Over the past few years, we’ve learned how unpredictable global circumstances can be. From the pandemic to the present, we’ve witnessed how quickly the global landscape changes – reminding us of the importance of adaptability and competitiveness, as well as the need to protect the interests of investors, the economy, and citizens alike. I see Montenegro as a country that has gone through important phases of institutional maturity, now ready to capitalize on the knowledge and experience it has gained. In the next five to ten years, I believe we can become a recognizable investment destination in the region – not only because of our geographical position and natural potential, but also because of a more stable, transparent, and efficient system that builds investor confidence.
If we continue implementing reforms that lead to a more functional public administration, better access to skilled and educated human capital, and a stronger rule of law, I believe Montenegro can, in the coming years, become a hub for sustainable, green, and digital investments.In the long term, that would mean not only an increase in productive investments and the development of stable projects, but also what lies at the very heart of every investment policy – a higher quality of life for our citizens.