Montenegro provides attractive conditions for investors and is working in the right direction. Attention should be given to better communicating the country’s vision and policies.
Among the three risk areas, discrimination between foreign and domestic investors and unpredictable policy and regulatory change continue to be lower compared to breach of State obligations.
Montenegro has a very good performance on two EIRA indicators and a good performance on two indicators. It has obtained 90 points on regulatory environment and investment conditions. The country has improved its score by 4 points on management of decision-making processes, and it now stands at 87. Regulatory environment and investment conditions is at 85. Rule of law has the same score as in 2018 (66), while foresight of policy and regulatory change has decreased by 2 points, and it is now at 64.
On a more detailed level, Montenegro’s overall sub-indicator performance is good. The highest-scoring sub-indicator is again regulatory effectiveness (100) and is followed by institutional governance (94). The performance on transparency has improved by 9 points and now stands at 81. Restrictions on FDI and robustness of policy goals and commitments and are at 80 and 75, respectively. There have been no changes observed in respect for property rights (67) and management and settlement of investor-State disputes (65). The performance on communication of vision and policies has gone down from 58 to 53 points. It remains the lowest-scoring sub-indicator.