According to all macroeconomic indexes, Montenegro is bringing about a stable increase of the Real Gross Domestic Product (herein after: GDP), followed by a decrease in the budget deficit and unemployment rate.

This newly born European state is on par with the Foreign Direct Investment (herein after: FDI) trends characteristic of Southeast Europe.

Moreover, FDI characteristics in Montenegro are compatible with those from the region not only from the investment structure point of view, but also with regard to the origin of investments and their types.

Namely, those are investments through various forms of privatization and an increasing number of Green Field investments, with significant inflow of FDI in the telecommunications and banking sectors.

One of world's leading auditing companies, Standard & Poors, assessed Montenegro's long term credit rating in 2005 as being BB positive, after reviewing its macroeconomic courses and FDI attraction potential.

According to the valuation of this reputable institution and thanks to Montenegro's strategic positioning and natural resources, this country has been identified as having the attributes in place that will ensure substantial inflow of FDIs in the future.

In addition to the above mentioned qualities, a low income tax rate of 9% and a highly qualified workforce, are additional attributes that lead to Standard & Poors positive valuation of Montenegro's long term credit rating

Standard & Poors predicted further growth of FDI by approximately 4-5% in the  2006-2007, mainly through tourism-oriented investments and privatization of large economic systems.

A significant number of institutional reforms executed in Montenegro, along with the adoption of a mass number of EU-oriented legislation, further create a foreign investment inducing environment.

Banking Sector

The European Bank for Reconstruction and Development (herein after EBRD) evaluated this sector as being very promising with the doubtless merging of banks in the near future and an overall augmentation of banks in the region.

Capital Market

The successful performance of the stock market proves that the laws and institutions governing the stock market are well implemented and organized. In addition to the existing Montenegro Stock Market, another one has been established supported by private capital' New Stock Market.

Four brokerage houses and one dealer house hold operating licenses, where one can easily trade stocks and bonds.

The Maritime Industry of Montenegro,

affected by the overall privatization process, possesses considerable potential from an investment stand point. Given its accessibility to major Mediterranean maritime centers (e.g. Betoa- Algeria, Ismire-Turkey, Alexandria-Egypt, Casablanca-Marrakech), it has excellent connection possibilities worldwide.

The Telecommunications
Sector

has a great deal of investment potential, especially in the field of the Internet. The possibility exists to establish a regional software incubator either through a business alliance system, or through joint ventures.

Tourism

is, by far, one of the most important economic sectors in Montenegro. In accordance with the state's Master Plan and Regional Development Concepts, Montenegro is putting its efforts behind encouraging infrastructure, real estate and construction investments.

The Energy Sector

will inevitably become interesting for foreign investors in the near future as further liberalization of Europe's energy system and privatization of this industry are expected.