The government has finalized a framework agreement with the United Arab Emirates (UAE) that aims to pave the way for investments from UAE investors in various projects along the Montenegrin coast and in the northern regions of the country.

This confirmation came from Prime Minister Milojko Spajic during a press conference yesterday, where he highlighted that UAE investors are particularly interested in a megaproject in Ulcinj or the northern part of Montenegro.

Spajić mentioned that this concept is still in the early stages, but the UAE is eager to invest up to 30 billion euros through the company “Emmar,” represented by Mohamed Alabara, in creating a tourist complex in Ulcinj aimed at attracting visitors from Western Europe.

He further noted that this agreement enhances collaboration between the two nations, broadening economic ties to include infrastructure, agriculture, innovation, and finance. This document also requires ratification by Parliament.

“This is a significant project that is still in its conceptual phase, and it would yield substantial benefits for Montenegro. We’re looking at annual investments ranging from two to three billion euros, with the state projected to garner around half a billion in revenue at project completion, and Ulcinj’s municipality expecting to receive between 50 to 60 million. Moving forward, the state will no longer sell strategic parcels of land but will co-invest alongside major investors,” Spajić explained, ensuring that the process will be transparent, adhering to intergovernmental agreements.

The Prime Minister also announced that Montenegro will cultivate partnerships solely with investors, eliminating any sales of public land or strategic sites.

Alabar’s company “Eagle Hills Montenegro” participated in a bidding process for leasing beaches in Montenegro’s southernmost municipality and has acquired nine beaches, a move that sparked outrage among local Ulcinj officials and former tenants. “Eagle Hills” has since stated its willingness to either sublease the properties back to previous tenants or relinquish the lease.

Spajić visited Ulcinj two days ago, where he communicated Alabar’s investment interests to local government leaders and party representatives.

Yesterday, Mehmed Zenka, a Member of Parliament and President of the Democratic Union of Albanians (DUA), confirmed to “Vijesti” that Prime Minister Milojko Spajić discussed with city officials and local representatives the UAE investors’ plan to lease the entire Velika Plaža for 99 years—from Port Milena to the Bojana River mouth.

“This is entirely unacceptable to us. We are not opposed to investments; rather, our stance is that Ulcinj is not for sale. A century-long lease would affect generations to come; it’s the future of our community that’s at stake. We conveyed to the Prime Minister that our city’s strategic plans include other locations for investments, not the entire 20 million square meters of beaches and Velika Plaza’s hinterlands,” stated Zenka.

Zenka went on to detail that Spajić had shown them a visual representation, indicating that the contract with the Arab investors for Velika Plaža would be extensive, potentially comprising several hundred pages.

“One visual alone isn’t sufficient for us to make any decisions regarding the investor’s conceptual plan. While we recognize the magnitude of the initiative, we remain cautious about its feasibility,” lamented Zenka.

On the other hand, Spajić refrained from confirming the details shared by Zenka about the proposed 99-year lease for Velika Plaza, neither affirming nor denying the information.

When asked whether he had persuaded Ulcinj authorities regarding this project and why Alabar was meeting with Genci Nimanbegu, the mayor of Ulcinj, Spajić responded that “Alabar was merely passing through en route to Hvar, where he owns 80 percent of the hotels.”

Earlier this year, in mid-February, Spajić made an official visit to the UAE. The Prime Minister’s Office disclosed on February 13 that Montenegro and the UAE had signed a Memorandum of Understanding in Dubai, aimed at exchanging expertise in public administration development and enhancing economic cooperation. The document was endorsed by the UAE’s Minister of Cabinet Affairs, Muhammad bin Abdullah al-Karkavi.

“This agreement signifies a new, more dynamic partnership between our nations and reaffirms our commitment to strengthening this collaboration. The sharing of knowledge and expertise will be crucial for us in modernizing our government operations and public administration as a whole,” declared Spajić, who was attending the World Government Summit 2025 at the time.

The Public Company for Marine Management issued a call for proposals to lease Ulcinj beaches on February 19, with the submission deadline initially set for March 4, later extended by another week. Following this extension, Alabar registered his company in Montenegro and submitted a tender for the beach leasing.

Ensuring Transparency in Investments with Local Community Engagement

The local Ulcinj parliament reached a unanimous decision yesterday during an extraordinary session concerning the operations of the Public Company for Coastal Zone Management (PK) and established guiding principles for future investment projects. Among other resolutions, the assembly called for amendments to the Law on PK, ensuring that upcoming investments do not trigger undesirable demographic shifts.

The councilors voiced their strong support for investments that would enhance economic growth and elevate the quality of life for the municipality’s residents.

All investment projects must align with the principles of sustainable development, comply with the planning and strategic documents of Ulcinj and Montenegro, and consider economic, environmental, and social sustainability standards.

“Projects must adhere to ecological responsibility, the conservation of natural resources, and environmental protection. The process for approving and executing investments should be transparent, actively involving local communities and the expert public. Acknowledging Ulcinj’s unique context where an ethnic minority makes up the majority population, investments should align with international standards and legal regulations to prevent adverse demographic changes that could jeopardize the cultural, ethnic, or social identity of the municipality,” said the local parliament, which also urged all prospective investors to ensure their projects align with these principles to foster sustainable development in Ulcinj.

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