The fascinating idea of a Monaco on the Adriatic would take hold of Peter Munk for the next ten years of his life, and this dream has been realized by how Montenegro’s recent (and very favourable) financial climate has played out for rapidly rising foreign capital investments in Europe’s newest country.
Montenegro’s Economy – In Review
«Combinat of Aluminium in Podgorica» (CAP) was bought in 2005 by a company
Basic Element, owned by Oleg Deripaska, for a reported sum of €48.5 million euros along with a bauxite mine in Niksic (for €6 million euros). This has been the largest private investment into the Montenegrin economy coming from Russia, and has also included 3 processing factories: Kovacnica, Prerada, and FAK Kolashin.
Tourism and accomodation
The biggest income to Montenegro is from tourism and futher nation-wide growth is expected in this important industry. In terms of how quickly tourism in Montenegro is growing, the industry’s rapid growth is estimated as second in the world only to Macao (China).
From January to August, 2008, the number of tourists arriving to Montenegro was estimated at 968,079 persons, what is 4% higher than same period of 2007. Income from tourism for that same period was estimated to be €404 million euros, a hefty 7.5 % higher than income realized in the same period of 2007. 
Annual growth in the number of tourists, from abroad:
45% in 2005
39% in 2006
22% in 2007
These growth rates are more than six (6) times the European average.
Private investments into renovation and modernization of wellness (spa) and conference facilities in Montenegro's hotels is estimated to exceed €400 million euros. In the last 5 years, 95% of all Montenegro’s hotels where privatized. The biggest concentration of hotels, (90 hotels, or 18.000+ beds), is currently located on the Budvan Rivijera.
The income from one room in a renovated 4-star hotel is estimated to be €23,000 euros a year.
Among prominent hotel owners from Russia is the Russian-Montenegrin company «Montenegro Stars Hotel Group» which runs the Budva hotel hotel «Splendid». 
Hotel «Xanadu» (4-Stars, 2000 ?2, 120 beds) in Kumbor was recently bought by Maxim Chermesov for €4.5 million euros. In 2007, a 72,61% stake in the hotel «Ravnjak» in the Tara River canyon was bought on the Montenegrin exchange from the MIT foundation for €130,000 euros by the Russian businessman Vladimir Morenko.
The prominent Singapor company «Aman Resorts» obtained in January of 2007 an exclusive 30 year contract to management hotels on the island of «Svety Stefan», the royal palace of «Milocer» (schedule to open in 2008) and also «Kraljicina stolica».
Gabor Tot from Hungary also owns the hotels «Central» and «Topla».
Future Projects and Tenders
Among the many project tenders to be announced shortly, one hotly anticipated item includes the development of the former military complex called «Orjenskij bataljon» (39,000 square meters) which includes Kumbor, Bigovo, Valdanos and Ostrov Cviece. Soon awaited tenders for Lustica, Ada Boyana and the development of Velikiy Plaza have investment commitments between €7 and €10 billion euros
Also in the works is the Montenegrin government’s need to choose a strategic partner for the modernization of Slovenskiy Plaza in Budva (with a total project cost estimated to exceed €2 billion euros.) This will also include the constraction of two high-rises with 27 and 25 floors, respectively. Currently, the main partner in this project is rumoured to be a company from the United Arab Emirates (UAE).
Finally, one of the last and biggest projects to be discussed here is new interstates freeway from Bar to Boljari which will run for 165.6 kilometres (more than 100 miles) and include 95 bridges and 50 tunnels. This project alone will exceed approximately €1.9 billion euros.
In Montenegro, the call has been made for competitive contractors and other companies from Austria, France, Greece, Croatia and Israel to now compete in Montenegro.
Realized by: Igor Kossich