The ease of doing business index has never been higher, a significant drop in the rule of law index

The index showing the ease of doing business for foreign investors in Montenegro (MFIC index) in 2021 was 7 (on a scale of 1 to 10), which is a significant increase compared to last year when it was 6.4, and 0.1 higher. from 2019, which was considered a record.

This was announced at today's presentation of the eleventh edition of the White Book: Investment Climate in Montenegro 2021, executive director of the Council of Foreign Investors in Montenegro (SSICG), Ivan Radulović.

The telecommunications and ICT sector has the highest index this year, 7.7, while the tourism and trade sector recorded the highest growth of 0.8 points.

As Radulović pointed out, the decline in the area of ​​the rule of law is particularly worrying, as it recorded a drop of 0.4 and is now only 4.9, which is almost the lowest score in history.

In addition, out of the six categories that are recognized as areas to which relevant institutions should pay special attention, as many as four have recorded a decline, primarily the gray market.

"It recorded a drop of 0.2 to a rating of 4.8, which is the lowest recorded rating so far and indicates that activities related to this area have been completely absent," said Radulović.

The President of the Council and the President of the Board of Directors of SSICG Kristof Schoen (executive director of Addiko Bank) said that it is evident that the Montenegrin economy has progressed better than the countries of the region, but that the Russian invasion of Ukraine will have an impact on this area as well.

He pointed out that 2021 was a successful year in terms of economic recovery, and that tourism was the main driver of GDP recovery.

"In this context, it can be said that the crisis management of the Government and the Central Bank was highly professional, efficient and committed enough to support the recovery," said Schoen.

Member of the Board of Directors of SSICG, Branko Mitrović, said that he is very satisfied that the telecommunications and ICT sector has the highest business index this year, 7.7.

"The development of society cannot be imagined without the development of the ICT sector. A lot has been achieved, and a lot more is ahead of us. During 2021, a set of programs and strategies were adopted that are of crucial importance for the digital environment of Montenegro, and the representatives of the Council contributed to the drafting of such important documents. I will mention only a few of them: Digital Transformation Strategy 2022-2024, Cyber ​​Security Strategy, and the Program for Attracting Digital Nomads in Montenegro until 2025. As the digital transformation accelerates, formulating an effective regulatory approach becomes a key moment and requirement," Mitrović stated.

As he says, the combination of access to financing and policies that are adapted to business will create an environment that is suitable for technological innovation.

"A stimulating and intuitive business environment is necessary for further investments and business in Montenegro," concluded Mitrović.

Abazović: Important opening of new markets

Deputy Prime Minister Dritan Abazović said that everyone should work together to attract new investors.

"Without serious businessmen, there is no progress, but they should establish a stable political system in order for the legal system to function," he said.

He stated that the country will lose a significant part of Ukrainian and Russian tourists. "We will have a preseason and a postseason, but maybe that main season won't be like before."

He emphasized the importance of opening new markets. "The state must adapt, to open new airlines, to negotiate a more liberal visa regime with the European Union. We have to make it easier for foreign tourists to come to our state," he said.

He added that global trends can disrupt Montenegro less than some big powers.

"I think this season will be perfect, great. We are all rooting for the war to end as soon as possible," he said.

He added that he hopes that energy in Montenegro will be more interesting than tourism in the coming period.