The recent remarks by Mohamed Alabbar have sparked renewed discussions regarding Montenegro’s tourism strategy. Alabbar noted that the country boasts more coastline than Dubai yet attracts significantly fewer tourists, suggesting this disparity points to untapped economic potential rather than inherent limitations.
His comments come as Montenegro seeks to enhance its attractiveness for large-scale foreign investments, particularly from Gulf countries. Alabbar, who is the founder of Emaar Properties and Eagle Hills, advocates for a more aggressive development approach aimed at transforming Montenegro’s Adriatic coastline into a high-density, high-value tourism destination.
Alabbar’s argument centers on the underutilization of Montenegro’s coastline, which includes valuable areas such as Velika Plaža, Budva Riviera, Bay of Kotor, and Luštica. He highlights Velika Plaža, which features over 12 kilometers of largely undeveloped beachfront, as a rare opportunity for investors looking for “greenfield coastal inventory” in Europe.
Despite possessing such natural advantages, the volume of tourism in Montenegro remains relatively low. The country has historically welcomed around 2 million visitors each year, a figure that is modest when compared to major global tourist destinations and does not fully reflect the potential suggested by its extensive coastline.
Alabbar attributes this gap not to a lack of demand but to execution issues. He emphasizes that Montenegro has not yet industrialized its tourism sector effectively. Infrastructure challenges—especially concerning airports, highways, and large resort capacities—continue to hinder tourism growth. Alabbar has specifically pointed out the necessity for new airport infrastructure and enhanced connectivity as essential for increasing tourist numbers.
This perspective aligns with the rationale behind recent agreements between UAE and Montenegro, which facilitate large-scale tourism and real estate projects potentially valued in the tens of billions of euros. These agreements aim to streamline project execution through direct negotiations and long-term land leases, thereby reducing development timelines compared to conventional European methods.
However, this investment model has attracted significant scrutiny both domestically and within Europe. Critics argue that expedited investment frameworks could bypass necessary procurement and planning safeguards, potentially distorting competition and compromising environmental protections. Concerns are particularly pronounced regarding developments in ecologically sensitive areas like Velika Plaža, known for its diverse plant and animal species and as one of the last large undeveloped coastal zones in the Adriatic.
The ongoing debate in Montenegro reflects a tension between rapid capital deployment and regulatory compliance. On one hand is the “Dubai model,” characterized by high-density coastal developments spearheaded by major investors to maximize visitor numbers and asset values. On the other hand is a more gradual approach aligned with EU standards, emphasizing sustainability and careful spatial planning while preserving natural assets.
Montenegro’s current tourism landscape exhibits elements of both strategies. Coastal regions such as Tivat have developed into luxury micro-markets featuring projects like Porto Montenegro, attracting high-net-worth visitors with nightly rates ranging from €300 to €800. In contrast, locations like Kotor operate under strict heritage regulations that prioritize pricing power over volume growth.
What remains lacking is a robust middle layer of large-scale integrated resorts that could significantly boost visitor numbers without sacrificing price segmentation. This segment is precisely what Gulf investors are eyeing, viewing Montenegro as one of the last European coastal markets where substantial developments can still be realized.
The macroeconomic implications are considerable. Tourism is already a pivotal component of Montenegro’s economy, contributing significantly to GDP and foreign exchange inflows. Doubling or tripling visitor volumes could positively impact the current account balance, job creation, real estate valuations, and government revenues. Conversely, failing to capitalize on this potential may leave valuable natural resources underutilized.
Alabbar’s comparison with Dubai emphasizes an economic philosophy rather than mere geography. While Dubai’s coastline is fully integrated into a financial system supported by aviation hubs and extensive real estate development, Montenegro continues to operate under a fragmented model where infrastructure and investment frameworks have yet to align into a cohesive growth strategy.
The future trajectory will depend on how effectively Montenegro can harness available capital from Gulf investors while ensuring compliance with EU standards, safeguarding environmental assets, and balancing short-term growth against long-term value preservation.
