Dr Dragana Radevic, CEED Investment & Business Opportunities in the region, case of Montenegro May 14th, 2013 RCI Regional Access to Finance Event Challenges.

dr Dragana Radevic, CEEDdr Dragana Radevic, CEED

Investment & Business Investment & Business Opportunities in the Opportunities in the

region, region, case of Montenegrocase of Montenegro

May 14th, 2013May 14th, 2013

RCI Regional Access to Finance EventRCI Regional Access to Finance Event

““Challenges and Opportunities for Challenges and Opportunities for Better Future and Growth”Better Future and Growth”

Investment & Business Investment & Business Opportunities in the Opportunities in the

region, region, case of Montenegrocase of Montenegro

May 14th, 2013May 14th, 2013

RCI Regional Access to Finance EventRCI Regional Access to Finance Event

““Challenges and Opportunities for Challenges and Opportunities for Better Future and Growth”Better Future and Growth”

✪

Decline of Global FDI

Global foreign direct investment (FDI) inflows declined by 18% in 2012, to an estimated US$1.3 trillion - a level close to the trough reached in 2009 – due mainly to macroeconomic fragility and policy uncertainty for investors.

FDI flows to developing economies, for the first time ever, exceeded those to developed countries, by some US$130 billion.

Source: UNCTAD

Ernst & Young’s attractiveness survey. 2012

EY Attractiveness Survey on SEE

Strong improvement in investors’ perceptionLeadership on costs and productivity leading

to domination in labor intensive activitiesWeakness on quality and infrastructure

generating low interest in knowledge-based activities

A high level of confidence in the future driven by EU membership

A strong perception gap depending on investors’ experience in SEE

Areas of perceived improvement resulting from EU membership

Allocation of EU funds

Costs and labor shortage are major threats

From the epic past ...

… to the modern life

Dynamic of change

PastPresentFuture

Montenegro today is… (1)

Politically stable and safe country Has national treatment of foreigners Ability to remit profit, dividends and interest Euro – no hidden inflation Flat Tax System (CT 9%, PIT 9%, VAT 17%) Easy Business Start Up (1 EUR + 4 days) Increasing economic freedom.

Montenegro today is… (2)

EU candidate country with launched negotiations process

A step away from NATO membershipWith no open issues with its neighborsMember of WTOWith free trade agreements with EU,

CEFTA, EFTA, Russia, Ukraine and Turkey

Vision

By 2020 to become leading hub for business development in Adriatic region.

Priorities

Continuation of the regulatory reform Improving competitivenessStrengthening the capacities for attracting

FDI and building partnerships on national and local level

Promotion and communication for target sectors and markets.

Kumbor - SOCAR

Investment and Business Opportunities

Energy

Tourism

Agriculture

Industry

A strong perception gap depending on investors’ experience in SEE

Areas of perceived improvement resulting from EU membership

Allocation of EU funds

Thank you for your attention…!

Contact: [email protected]