09 July 2019 - According to the fDi Report – the annual assessment of crossborder investment based on the fDi Markets service from the Financial Times, Montenegro attracted 11 foreign greenfield investments in 2018.
A green field investment is a type of foreign direct investment (FDI) where a parent company creates a subsidiary in a different country, building its operations from the ground up. In addition to the construction of new production facilities, these projects can also include the building of new distribution hubs, offices and living quarters. The term “green field investment” gets its name from the fact that the company launches a venture from the ground up – plowing and prepping a green field. These projects are FDI that provide the highest degree of control for the sponsoring company.
The findings of the fDi Report for Montenegro suggest that the possibilities of an increase in the number of foreign greenfield investments should be exploited in strategic planning and policies aiming to stimulate future growth and avoid transactions associated with economic decline.
The Report also states that the Western Balkans recorded the largest inflow of greenfield direct investment (FDI) in the decade of 9.36 billion USD in 2018.
Despite the fact that Western Balkan countries have attracted significantly less Greenfield SDI projects from rivals in central, eastern and western Europe, the outcome of this region is very good having in mind its share in global GDP, it is stated in the fDi Report.
The analysis states that, despite political tensions that have hit the region since the fall of communism, there has recently been a move towards greater regional economic integration and co-operation.
fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions. Clients benefit from the proprietary data of fDi Intelligence and the global insight, integrity and credibility of The Financial Times Ltd.
Read more about business environment in Montenegro at TMN's dedicated page.
