European Commissioner for Enlargement Marta Kos issued an opinion this Monday regarding the Agreement on Cooperation in Tourism and Real Estate Development signed between the governments of Montenegro and the United Arab Emirates (UAE). According to Vijesti, the essence of her opinion on the agreement is that it, at first glance, does not violate EU law or the Stabilisation and Association Agreement (SAA) between Montenegro and the EU due to a lack of detail. However, improper interpretation or implementation of certain provisions could lead to violations, particularly in the area of public procurement and the potential discrimination against European and Montenegrin companies.
On 23 April, at the request of Prime Minister Milojko Spajić, the Montenegrin Assembly adopted, under urgent procedure, the laws ratifying the Economic Cooperation Agreement and the Agreement on Cooperation in Tourism and Real Estate Development with the UAE.
The opposition and civil society organizations have warned that the deal with the UAE conceals plans for a large-scale investment at Velika Plaža in Ulcinj, covering around 20 million square metres, which the government intends to lease for 99 years to the company of Arab investor Mohamed Alabbar, who is also behind the controversial Belgrade Waterfront project.
Although the opinion from the European Commission arrived on Monday, President Jakov Milatović had already returned the agreement to the Assembly for reconsideration on 29 April and refused to sign the decree promulgating the Economic Cooperation Agreement with the UAE.
According to Vijesti, Kos’s opinion singles out as particularly problematic the provision of the agreement that excludes public procurement procedures, tenders, and competitive bidding.
“In particular, the Agreement on Cooperation in Tourism and Real Estate Development states that any contracts, programmes and further agreements with investors from the UAE are exempted from legislation of both countries on public procurement, public tender and public competition procedure. It would thus appear that future contracts may be benefiting from direct award, which could constitute a breach of EU public procurement laws”, Kos stated.
Milatović and Spajić divided over Kos’s opinion
President Jakov Milatović, who requested Kos’s opinion, interpreted the response as a warning and urged the ruling majority to exercise caution ahead of the second parliamentary vote.
“This opinion confirms what I have been pointing out from the beginning – implementation of this controversial agreement would not align with the EU acquis, and that it is essential to conduct a thorough debate on the agreement within Montenegro, as well as consultations with the European Union”, Milatović stated.
Although Commissioner Kos expressed concern over some provisions of the agreement, Prime Minister Milojko Spajić claimed that the opinion would only strengthen parliamentary support for the deal.
“I believe it is explicitly clear that the agreement is not in conflict with European legislation. They formally sent a letter stating that the agreement does not contradict EU law, which was the essence of the president’s inquiry. So, I’m more than satisfied with such a response. It proves the government was absolutely right in saying that the agreement is in line with EU legislation”, Spajić stated.
Activist Dina Bajramspahić told Vijesti that the Kos’s response amounted to a diplomatic “checkmate” for the government.
“The opinion clearly states that direct awarding of contracts contradicts EU public procurement principles – above all, the principles of non-discrimination, reciprocity, equal treatment of EU and Montenegrin companies, and transparency. The EU does not support a scenario where EU and Montenegrin companies are placed at a disadvantage while those from the UAE enjoy preferential treatment. This is a completely reasonable and expected position, and the government was warned accordingly”, Bajramspahić said.
She added that the EU managed to maintain a constructive tone through careful language, keeping the door open for Montenegro while offering a “lifeline” – especially considering that there has been no progress in EU accession negotiations for six months.
Wide opposition to government plans
Local community, opposition parties and civil society organisations warn that behind the agreement with the UAE lies a plan for a massive investment project at Velika Plaža in Ulcinj, spanning around 20 million square metres.
Following the World Government Summit held in Dubai in early February, attended by a Montenegrin delegation led by Prime Minister Spajić, Alabbar made his entry into Montenegro through the back door. He quickly established a company and participated in a tender for the lease of several bathing areas at Velika Plaža.
It soon became clear that the investor whose wealth is estimated at 2.3 billion euros had far more ambitions in Montenegro.
After an unexpected meeting between Alabbar and the Mayor of Ulcinj, Genci Nimanbegu, the public’s focus shifted from beach concessions to the revelation of a megaproject in the works, sparking outrage among Ulcinj residents.
“Twenty million square metres of Ulcinj’s Velika Plaža are planned to be leased for 99 years. I don’t know how anyone thought to do that without public discussion, without involving the local government and expert community,” said Mayor Nimanbegu. His position was backed by the local parliament and a large number of citizens.
Protests were organised, with demonstrators accusing Prime Minister Spajić of intending to hand over valuable state-owned land to Alabbar without a tender or public consultation—sidestepping existing spatial plans, the country’s development strategy, and principles of environmental and biodiversity protection for this mostly untouched coastal area.
The Montenegrin Prime Minister, however, presented the Arab billionaire as a credible investor who would bring in an astounding €35 billion. Yet, as Alabbar himself clarified, this figure reflects the “broader economic impact” of the project.
In an interview with TV Vijesti, Alabbar admitted that no detailed plan exists yet, but he did share his vision for the Velika Plaža project and what it would entail:
“It would be a continuation of the beautiful architecture you already have. There would be a lot of greenery, apartment buildings no taller than three or four stories, and the beaches would remain accessible to everyone, but clean”, Alabbar said, adding that he would respect all Montenegrin and European laws.
Some NGOs argue that the agreement effectively suspends Montenegrin law, grants Alabbar favourable treatment, and opens the door wide to potential money laundering.
The Network for Affirmation of the NGO Sector (MANS) stated that the agreement with the UAE bypasses Montenegrin laws and tender procedures, “opening the floodgates to money laundering.”
“There is an extremely high risk that the agreement with the UAE government could be misused for money laundering, as information on the real owners of companies registered in that country is not publicly available,” MANS warned.
They also accused Prime Minister Spajić of misleading the public regarding guarantees.
“The agreement states that the UAE government guarantees the investors it proposes. Yet, in the same article, it is clearly stated that the UAE bears no responsibility should those investors fail to meet their obligations or become involved in questionable or illegal activities”, MANS stated.