From the ninth floor of the Atlas Capital Center, from an office with windows on one side, Ambassador Hafsa Abdulla Al Ulama looks out over Podgorica and the mountain range that especially inspires her.
"Infrastructure is a problem, otherwise, the north and the mountains are as interesting to investors as the coast," says Al Ulama, the ambassador of the United Arab Emirates, an energetic woman who entered diplomacy from the economic sector. One of Al Ulama's business concerns these days is the political knot around the Queen's Beach, where the Royal Group from Abu Dhabi is expected to enter, under a contract that is the subject of a dispute in the Montenegrin ruling coalition.
"Of course investors are worried about that," said the ambassador in an interview with "Vijesti" on the eve of December 2, the UAE National Holiday.
The economic hub of the Middle East and an example of political stability, the UAE in Montenegro is launching dozens of humanitarian actions, from helping children with special needs, through donations to the Islamic community, to the construction of a future recreational park near Spuž, near Al Ulama's residence.
Is it difficult to represent the identity and culture of a nation that is known all over the world mainly for its great wealth?
That's a good question. You know, being rich is relative. In history, there were many countries that had resources, but did not use them well. What is important for my country is that we succeeded in this.
You discovered oil in the fifties, before that you were a poor country?
Very poor. The first surveys of the field were not promising. I remember, because I'm older than my country - my country is only 43 years old - when I was young, we didn't even have clean drinking water in the house.
And how did you manage?
They delivered well water to us on donkeys, in barrels. It was water from another part of Dubai. In our household, we only had salt water, which we used for washing.
Is there any point in thinking about the possible export of bottled water from Montenegro to the UAE today?
It's always an open idea, as the UAE consumes the most bottled water per capita in the world. So, we desalinate or import water. There is no third solution for us. But that's why the competition in this business is great.
Is the remoteness of Montenegro a problem?
No. We import water from France, New Zealand, Turkey...
There were some tentative consultations with the Montenegrin authorities about that possibility, or not?
We talked several times with various competent people in the Government and ministries and we always said that it could be a good chance. But the Government and the private sector in Montenegro must offer something economically profitable, including a part of the work related to the transport of goods. Perhaps a good idea would be to enter into cooperation with a large international company in order to offer a competitive product. This is how we work in my country, we know that we don't have all the knowledge and all the resources, so we import both.
What else could you import from Montenegro, besides water?
Agricultural products, for sure. Let's say olives, olive oil, maybe organic production... cheese and dairy products are definitely a chance.
But we in Montenegro do not have enough quantity for large markets.
Then don't even compete with quantity. But that's why you can develop quality, if you want to assert yourself. Exclusive and high quality. Let's say, I don't know if you're aware of it, but your tomatoes are something special. You don't call it tomato (paradise, English, prim. aut) for nothing, citrus fruits too. There is a market for it all you just need to find your niche, I'm not talking about large quantities.
Your country is a big story in Montenegro, because of the power, wealth and economic reason you possess. How much has been invested so far?
According to the information I received from investors, we can talk about the Atlas capital center, which is an investment of 100-140 million euros. It is the largest investment to date, and along with Porto Montenegro, the only completed large foreign investment in Montenegro. It is a very nice feeling for us, to know that we are among the first two big investments. But new investments are coming, you saw that one of our companies is bringing Hard Rock Cafe to the Balkans, that is, right here in Podgorica. As they said, they will employ 70 people, so new jobs are being created. What are good investments? The ones that create a vicious circle of new businesses - because services, products, personnel are needed and thus a whole circle is created. For such a small country, you don't need many such rounds to feel the results. The hotel that will be in the Atlas capital center will create 100 jobs. And that's an opportunity.
tlas capital center is a large building. Are you afraid that it might remain half-empty?
The ruler of Dubai built the Jebel Ali duty-free zone in the XNUMXs. When he did that, everyone told him it was crazy. But he persevered and he was right - it became a logistics center and that center was practically built by Dubai.
You are making an analogy with Podgorica, because that part of the city is slowly becoming the center...
You know, when you're working on a project of this size, you don't think in terms of a year or two. We are looking at the long term, we did not come here to turn over the money and leave. This is a partnership and we are looking at the shortest term of 10 to 15 years, and then we will judge. After our investors, no one will soon start a project of this size. And that's what the investors were counting on, probably - this is now the only address, the newest and most advanced in terms of sustainability. We are talking about 85.000 square meters, with enough parking and modern technology. It is therefore an investment in the future.
The conditions for the transfer of Kraljičina beach are a problem between DPS and SDP. Could this affect the Royal Group's decision to invest?
In the end, it has an impact. Honestly, if the investor does not have a clear picture and security, it is not good. What you mentioned already casts a dark shadow that investors see. And they have already invested part of the funds, made a plan...
What is their comment. Are they worried?
Of course, because they have already invested in the plan. Of course they are worried. I read in the newspaper that President Vujanović also warned about the situation.
What can you do about it? Do you plan to go to DPS and SDP to help them solve the problem.
If partners from the UAE asked me to, I would talk. But I will not get involved in the details, this is a job for the Government to solve. We are a very patient people, we will wait because we like the place, but if it is not possible, we will go to another place, somewhere outside of Montenegro, or in Montenegro.
The alleged desire of the investor to contract absolute control over the land, the so-called extraterritoriality, is also mentioned as a possible problem. Is that correct?
I don't know anything about that. But in principle, there are state rules and we work according to them. The matter is simple, the Government is there to set the rules. That's how it is everywhere. We have a UAE investor in the UK, in the middle of London, he invested £300 million opposite Buckingham Palace and it was all completed in a year without any problems.
Have there been conservative voices against UAE investors in the UK?
The market is free. There is a system where you can complain about everything.
Do you feel welcome as investors here in Montenegro?
Yes. I think there is a lot of potential here, it will take some time, but the will is there. I spoke with a group of your students yesterday and I am optimistic. Here, people were positive in 2010 and 2011, when in Spain, Greece, Portugal they were desperate. That is the key to your success. Your people.
Montenegro was our beginning in the Balkans
Are you looking at the region in one area, do you have an umbrella investment plan for the Balkans? Is there coordination among UAE investors in the Balkans?
We originally came to Montenegro. We do not have a resident ambassador in Croatia and Bosnia and Herzegovina. Montenegro served us as a starting point in the Balkans, now we are also present in Serbia, of course, but every company has its own story, the local circumstances they face.
The best conditions for farmers
The investment of the Abu Dhabi fund for development in Montenegrin agriculture was announced. Can you give me some more information from my Government.
You see, the Abu Dhabi Development Fund, it's a development bank, like the IMF is the World Bank. It helps countries around the world, billions are of course at stake. They give loans for development, not for anything else, not for financing, restructuring or the like. A management board will be created, an independent body that will monitor the spending of that money exclusively for agricultural projects. What I want to assure you is that it will be the best loan conditions for Montenegro, because we do not see it as a big business but as an initial aid for the development of the sector.
Everything is clean, Atlas group is the tenant
Montenegrin partner Atlas Group is no longer in this business. Is it true that there were some irregularities in their business?
No. I think no. I haven't heard anything like that. We invest all over the world and when we came here we thought it was important to have a local partner for a better understanding of the business. The years 2010 and 2011 were a crisis for everyone, but in the meantime investors decided to buy out part of the Montenegrin partner. Proof that everything is in very good relations between the partners is the fact that Altas Bank has opened its branch here, and their headquarters will be in our business tower.
So they are no longer in business. In what capacity are they in the Atlas capital center.
As I said, they are now tenants. You see, it is normal that at some point the business goes in a different direction... We in the UAE also have direct foreign investments, and that was 60 billion last year alone. Investors do not enter alone, but often take local partners who make it easier for them to do business and understand the local market.
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