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23-Apr-2025
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Parliament Gives Green Light to Arab Investments

SOURCE: POBJEDA – AUTHOR: M.J. GDNUS

The Parliament of Montenegro has adopted the Law on the Ratification of the Agreement between the governments of Montenegro and the United Arab Emirates (UAE) on cooperation in the field of tourism and real estate development, which has recently sparked public debate.

A total of 60 MPs voted, with 46 in favor, 10 against, and four abstentions.

None of the eight amendments proposed by the DNP (Democratic People's Party) were supported. These included proposals such as allocating half the investment value to the north, ensuring at least one project in a municipality with a Serb majority, excluding expropriation of religious property, and requiring transparency of the ultimate beneficial owners of investors, contractors, subcontractors, and consultants.

Additionally, MPs rejected an amendment by independent MP Jevrosima Pejović that aimed to prevent projects under the agreement from being treated as in the public interest.

Previously, the Law on the Ratification of the Economic Cooperation Agreement between the governments of Montenegro and the UAE was adopted with 50 votes in favor and 10 against.

Infringement on Rights

After almost ten hours of debate, just before the vote, Ilir Čapuni (Albanian Alternative) called for the session to be paused, citing the Law on National Minorities and arguing that the agreement infringes on minority rights and could impact demographic changes in Ulcinj. In response to his demand for consultation with the government, Parliamentary Speaker Andrija Mandić noted that Ulcinj or any other municipality is not mentioned in the agreements.

"This request is irrelevant because no municipality is mentioned. The government has clearly stated that if a municipality is not interested in investment, the investor will not come," Mandić said, asking Minister Adžović to comment.

Still, Čapuni insisted on aligning views directly with Prime Minister Milojko Spajić and EU Ambassador Johan Sattler, not the Minister. Adžović asserted that, as the authorized proposer of the law, she has full legitimacy and stressed that the agreements do not target any community or town.

Though the agenda formally listed separate points, the discussion mainly focused on the tourism and real estate agreement. The opposition stressed they were not against investment per se, but criticized the process as non-transparent, unconstitutional, and a threat to the EU accession path.

Presenting the laws, Minister Adžović emphasized that no investment will be forced on any municipality.

"If the municipality of Ulcinj does not want an investment at Velika Plaža or elsewhere, it will not happen. If any other municipality wants to participate, the government will support it. This is a principle we will not deviate from," said Adžović.

Formal Renewal

She explained that the main reason for the new economic cooperation agreement is that the previous one from 2012 has expired. She described it as a "formal renewal of a legal framework enabling comprehensive economic cooperation."

"The agreement is a legal act that provides a basis for further negotiations leading to investment contracts. Voting against it can only lead to a permanent end to cooperation with the UAE. The agreement was signed with the participation of UAE officials, and failure to ratify it would be seen as a diplomatic insult," Adžović said, questioning the opposition’s motives.

When Mehmed Zenka (DUA) asked how the public could trust the government, given past contradictions, Adžović replied that the government would focus its resources only on communities that want investment, which she framed as common sense. Zenka asked what legal recourse citizens would have if their land is expropriated.

Jelena Nedović (PES) accused "environmental populists" of hate speech.

"A sensationalist narrative without legal grounding does not help inform the public or strengthen institutions. Anyone who believes this agreement violates the Constitution or laws, or that PES MPs, ministers, or the Prime Minister committed crimes, should file criminal charges. The agreement does not involve selling land, paving beaches, or cutting down forests for ski resorts. The Constitution and laws are not being violated," she said, adding that the government seeks credible investors and no one can deny that Mohamed Alabbar is one.

Lack of Transparency

Nikola Rakočević (DPS) highlighted the lack of investment since 2020, noting that €14 billion had been invested in Montenegro since 2006. He criticized the closed-door negotiations, saying they harmed Mohamed Alabbar's reputation.

"The UAE is a serious partner and their investors are welcome in the US and Europe, so they should be welcome here too — but not like this. Spajić created a major issue for Alabbar and Montenegro’s investment potential with an unserious, unconstitutional, and illegal process," Rakočević said.

Dejan Đurović (NSD) called the agreement a strategic decision that doesn't threaten EU integration. Dritan Abazović (URA), however, claimed the deal is about gifting property.

"You’ve seriously damaged Alabbar’s and the UAE’s reputation. You've been lying for ten days about not knowing who the investor is. You're in a hurry because someone’s under pressure. Those who vote for these agreements will be remembered as betraying their country," Abazović said, warning that Velika Plaža might be closed to locals, like Sveti Stefan.

Public Interest and Legal Concerns

Boris Mugoša (SD) argued the agreement would allow for taking private land without consulting owners, under a vaguely defined public interest. He proposed a mini public debate to amend parts of the deal.

Tonći Janović (PES) said GDP has doubled since 2020 and believes the agreements will spark a chain of new investments.

"This is our chance to realize dozens of projects — perhaps through this or another investor, but this will start a chain reaction like Porto Montenegro and Luštica," Janović said.

Although the agreement, as an international treaty, would supersede national law, Janović insisted domestic laws will still prevail and said transparency was ensured through standard procedures.

He defended excluding public procurement laws as normal: “An investor expecting to invest billions needs certainty.”

From Sunbeds to State Leasing

Aleksandra Despotović (DPS) criticized the absence of reference to strategic documents on tourism, agriculture, or sustainability.

"I'm surprised you're here alone, Minister, when this agreement touches on 16 sectors," she said.

Momčilo Leković (Democrats) recalled how 200,000 square meters of state land in Bar were sold for €32 million nearly a decade ago without any debate or due process — yet no one raised concerns then.

Nikola Milović (DPS) argued that the government is misleading the public and that its economic model is collapsing. Darko Dragović (PES) said the agreement poses no risk of violating laws or facilitating cigarette smuggling and insisted there’s no identification of locations or investors in the text.

Doubts and Disputes

Milan Knežević (DNP) asked the Minister to clarify several points before deciding how to vote, such as why no public debate was held, why public procurement laws are bypassed, and whether the transfer of authority from Parliament to Government over property is constitutional.

Ivan Vuković (DPS) labeled the deal a "heist," claiming state-owned land worth €20 billion is being handed over to a private investor for residential development.

Ana Đurović-Novaković (URA) criticized the Minister for not reading the Spatial Plan, claiming residential development is forbidden in Ulcinj under it.

Mirsad Nurković (BS) saw the agreements as a unique opportunity, especially for Bjelasica, Berane, Rožaje, and Mount Hajla, but emphasized that they will not support anything not backed by local citizens.

Miloš Konatar (URA) said they don’t believe in the deal themselves but are going along with it under pressure, pointing out that the government made a decision during an electronic session lasting just 33 minutes.

Ulcinj Mayor Confirms Offering Five Locations

Ulcinj Mayor Genci Nimanbegu confirmed Pobjeda's report that he had offered five locations in Ulcinj to UAE investor Mohamed Alabbar.

When asked by Vijesti if it’s true that he made the offer in a letter to the Ministry of Spatial Planning, State Property, and Urbanism, Nimanbegu said:

"Yes, those were proposals. You can send proposals to anyone. It’s no secret. We wanted to show we’re open to sustainable development. We didn’t know at the time it was about real estate. The government misrepresented our intentions and claimed to have accepted Ulcinj’s municipal conclusions. We only wanted to show we’re ready to talk," he explained.

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