Agreements with the United Arab Emirates (UAE) on cooperation in real estate and tourism development have sparked controversy in Montenegro, splitting politicians and citizens as debates take place in the parliament on draft laws that would allow the government to put them into force.

Plans to allow UAE-based developer Eagle Hills to develop Velika Plaza, Montenegro’s longest beach and one of the longest in Europe, have sparked protests by environmental groups and ordinary citizens. 

The deals were signed by Prime Minister Milojko Spajic earlier in April but faced serious opposition from some political parties and from President Jakov Milatovic, who claim they would breach several existing laws.

Spajic claims that the agreement would bring investments worth €30bn or more to the country but has not provided information on what these estimations are based.

Minister of Public Works Majda Adzovic said in an interview with TVCG that Montenegro should enter the project with the UAE as a co-investor to avoid leasing state property at a low price.

Milatovic said during a meeting with head of Ulcinj’s municipality, Genci Nimanbegu, that he has sent a letter to the European Commission, seeking its opinion whether the agreements are in line with the EU’s acquis.

Milatovic said also the agreements annul Montenegrin key laws and that the government’s request to parliament to vote on them is frivolous, RTCV reported on its website.

"What we can say is that we are familiar with the Agreement on Cooperation in the Field of Tourism and Real Estate Development that Montenegro signed with the United Arab Emirates. We can confirm receipt of the letter and will reply in due course. At the request of Montenegro, the Commission can certainly give an assessment of this agreement in relation to the EU acquis," European Commission spokesperson Guillaume Mercier said as quoted by TVCG.

The head of the Ulcinj municipality, Genci Nimanbegu, said that the MPs who back the agreements in the state parliament will become enemies of Ulcinj. It is expected that the UAE agreement on tourism would result in the construction of hotels and resorts in Ulcinj.

One of the leaders of the European Alliance, Ivan Vujovic, also criticised the government’s decision to sign the agreements, saying that they are repeating bad practices from the past.

"It even introduces an even worse practice, which, in addition to constitutional disputes, is characterised by ignoring the local community, the absence of a wider public debate, speeding up the parliamentary procedure," said Vujovic.

On the other hand, Filip Radulovic, member of the leadership of the ruling Europe Now (PES) party, believes that the agreement with the UAE is a great opportunity for Montenegro.

"Montenegro is more than ready for new investments, new jobs and a better standard of living. The agreement with the UAE confirms the determination of government of Montenegro to strive for the valorisation of tourist potentials and the expansion of the offer, in cooperation with very credible partners, from which we as a state will have multiple benefits in the long run", said Radulovic as quoted by RTCG.

The coalition Big Beach or Big Lie held protest in front of Montenegrin parliament, objecting to the government’s intention to urgently include on the agenda the agreement with the UAE regarding the future of the Great Beach.

"This is an attempt to push through a multi-billion dollar agreement without public debate, without transparency and with a violation of legal procedures, which could have serious consequences for the public interest and natural resources of Montenegro," the organisation said in a statement to RTCG.

To ease the tensions, the Democratic People’s Party (DNP), which is a member of the ruling coalition, proposed amendments to the agreements, also envisaging investments in Montenegro’s poorest northern region. The amendment, if adopted by lawmakers, would demand at least 50% of the investments to be made in that part of the country.