In July 2026, the Government adopted a framework for the future Law on the Screening of Foreign Direct Investments, signalling a clear shift towards closer alignment with the EU’s evolving investment-screening framework.
The proposed regime would require prior approval for certain investments by non-EU investors in 14 strategic sectors, including energy, transport, telecommunications and digital infrastructure, healthcare, finance, media, defence, AI, semiconductors, quantum technologies, agriculture and critical raw materials.
But the real test will not be the adoption of the law. It will be how the regime works in practice.
Our experience with FDI screening regimes across the region highlights several issues Montenegro should address from the outset:
- Clear definitions matter. Vague concepts such as “significant influence” or “critical technologies” can lead to unnecessary filings and regulatory uncertainty.
- The second review phase needs firm deadlines. A 45-day initial screening period may be manageable, but investors also need certainty around the duration of any in-depth review.
- A 10% threshold is significant. Without appropriate carve-outs, minority investments, portfolio investments, intra-group reorganisations and security arrangements may unexpectedly fall within the regime.
- Sanctions must be proportionate. Strong enforcement mechanisms should be matched by clear filing obligations and predictable rules.
- The law needs to be operational from day one. Implementing regulations, institutional capacity and adequate staffing will be just as important as the legislation itself.
- Conditional clearances and judicial review will be key. The credibility of the new system will ultimately depend on transparent, reasoned and predictable decision-making.
For investors, the message is clear: FDI screening should already be factored into transaction planning where acquisitions in strategic sectors are concerned – including deal structures, conditions precedent and transaction timelines.
Montenegro’s new regime can strengthen investor confidence and support its EU accession objectives.But achieving that will require a careful balance between protecting strategic interests and preserving the legal certainty and openness that have traditionally made Montenegro attractive to foreign investors, check up the details in the article by Senior Partner Lana Vukmirović Mišić and Associate Martina Jelovac from JPM Podgorica office.
