UAE-Montenegro strike a multi-bn-EUR investment partnership: The UAE and Montenegro signed a five-year economic agreement to boost investments across multiple sectors, with a focus on tourism and real estate, the Montenegrin news agency (Mina) reports. The partnership will be automatically renewed for another five years unless either party decides to terminate it.

The breakdown: The agreement involves establishing two major tourism projects in the north and south of the country, Montenegrin Prime Minister Milojko Spajić said. The two countries will also cooperate on other projects across several sectors, including telecommunications, aviation, infrastructure, construction, trade, agriculture, and e-government, Vijesti reports. A joint commission will be established to oversee project implementation.

What we know about the projects: The northern project will be a winter tourism-focused ski resort, including an integrated development of tourism and mixed-use real estate, according to Mina. The project is expected to witness EUR 2-3 bn in annual investments and revenues of EUR 500 mn, MontenegroBusiness reports.

Mohamed Alabbar’s Eagle Hills is reportedly in discussions to develop the southern tourism project, See News reports, citing Spajić. The company has submitted the highest bids for four-year leases on 20 beaches in Ulcinj’s Velika Plaza.

The proposed project, which will see some EUR 20-30 bn in investments poured into the country and generate about EUR 500 mn in annual revenue, includes:

  • The Adriatic’s largest marina;
  • An airport and hospital;
  • Restoration of Ulcinj’s Old Town;
  • and contributions to the Adriatic-Ionian highway project.

Alabbar is still contemplating his involvement in the mega-project: Alabbar could potentially relocate the project to another municipality in Montenegro, Spajić said. He is also considering moving the project to another location at a 20-km beach strip in North Africa.

More European protectionism? Some local businesses and environmental groups have raised concerns about leasing the project to a foreign company instead of local ones and the impact it could have on the economy and landscape, according to MontenegroBusiness. In response, Eagle Hills has pledged to lease all 20 beaches back to their original operators at the same price, See News reports.

This wouldn’t be the first of Eagle Hills’ projects to face backlash from European locals: A plan to develop a Grand Budapest high-rise development — briefly touted as a “mini Dubai” — never saw the light, after the Hungarian government granted the capital’s municipality pre-emptive rights to purchase the land due to concerns over its valuation and a need for more affordable housing rather than luxury developments.

Eagle Hills still has projects planned elsewhere in Europe: Eagle Hills is expanding in Georgia, investing USD 6 bn in projects. Developments will include homes, retail, parks, schools, and commercial spaces in Georgia’s capital, Tbilisi, and the seaside cities of Batumi and Gonio.

The UAE has been on a roll with overseas investments as of late. Recent agreements include:

Tags: