2. MONTENEGRO  Population 620 029 (census 2011)  Surface 13 812 km2  Border length 614 km (coast length 293 km)  Administrative Capital Podgorica (185 937 inhabitants)

3. NATURAL RESOURCES  agricultural area of ​​0.32 ha per capita  1 ha of forest per capita  40 natural lakes  4 dams  great river potentials  mineral wealth NATIONAL PARKS  Durmitor  Lovćen  Biogradska gora  Skadarsko jezero  Prokletije

4. GEOGRAPHIC AREAS  Northern – mountanious ₋ Tourism, animal husbandry, agriculture, forests, hydro potential  Central ₋ The biggest plain in Montenegro and the most fertile area  Southern – coastal ₋ Beautiful coast, sandy beaches (tourism, maritime economy, fishery, salt production)

5. EUROPEAN AND ATLANTIC INTEGRATION OF MONTENEGRO  CEFTA 2006 signed 19th of December 2006.  The Stabilization and Association Agreement signed 15th of October 2007.  Interim SAA effective from 01.01.2008.  Submited answers to a questionnaire 09.12.2009.  Candidate status for EU membership 17.12.2010.  Member of the WTO 29 April 2012.  Negotiations for EU membership began in June 2012.

6. DEVELOPMENT PRIORITIES OF MONTENEGRO Tourism Agriculture Energy Sector

7. MACROECONOMIC INDICATORS Year2006200720082009201020112012 Inflation (%)2,007,706,901,500,702,805,10 Rate of Unemployment (%) 14,6011,9010,7011,4312,1311,5013,50 Foreign debt (mil €) 504,00462,10481,70699,90912,401.063,7- Foreign debt as % of GDP 23,4017,2015,6023,5029,4032,50- Current Account Balance (mil€) -673,50-1,058,7-1,535,2-830,30-710,20-573,40-587,60 Deficit/surplus of budget (mil €) 85,10173,0015,10-132,10-112,30-189,70-163,80 % of participation GDP 3,906,400,50-4,40-3,60-5,90-4,90

8. INDUSTRY GROWTH RATE TRADE EXCHANGE Export Import Trade deficit

9. MONTENEGRO AS THE WORLD CAN SEE IT Bilateral Relations Montenegro has signed:  15 agreements on economic cooperation  10 agreements on the reciprocal promotion and protection of investments  Free trade agreements with EU, CEFTA, EFTA, Russia, Turkey, Ukraine while negotiations with Belarus and Kazakhstan are still in progress YearRank 200881/178 200990/181 201071/183 201166/183 201256/183 YearRank (1-7) 2008-200965/134 4,11 2009-201062/133 4,16 2010-201149/139 4,36 2011-201260/142 4,27 2012-201372/144 4,14 World Bank Doing Business World Economic Forum Global Competitiveness Report

10.  Investors are coming from 88 countries  There is no domination of any country relative to the number of registered investors ORIGIN OF INVESTORS

11. FOREIGN INVESTORS IN MONTENEGRO

12. IMPORTANCE OF FOREIGN DIRECT INVESTMENTS FDI per sectors 200620072008 2009 20102011 Finance 33%30%28% 11% 24%21% Tourism 25%23%22% 14% 21%24% Construction 10%12%14% 8% 9%8% Industry 10%12%10% 48% 22%23% Services 8%9%11% 6% 9%10 Transport 4%5% 4% 5%4% Agriculture 2% Other 8%7%8% 7% 8% Total 505678685 1,070 692534  Speeding up the reform processes;  Changing the structure of the economy;  Contributing to GDP, GDP growth, employment, budget revenues, export/import  Developing regional cooperation  FDI’s are changing way of thinking

13. StateFDI inflow in €% Of total FDI 1Italy486.804.30211.8 2Russia478.002. 57711.6 3Hungary355.691.4938.6 4Great Britain322.229. 0477.8 5Cyprus309.760.7547.5 6Switzerland305.170. 6627.4 7Austria298.424.9037.2 8Serbia159.497. 8183.9 9Germany145.354.7203.5 10Slovenia683.2673.5 investors from 88 countries source: MIPA

14. VAT standard rate – 19 % lower rate – 7 % corporate profit taxflat rate – 9 % personal income taxflat rate – 15 % property tax proportional tax ranging between 0.1 % - 1% of the immovable property’s market value Exemption from the income tax payment › a newly-established legal entity in economically underdeveloped municipalities which performs production activity is exempted from paying income tax for the first eight years following the beginning of business operations, on the income generated by performing the business activity in the underdeveloped municipality › a tax payer who makes a profit in a newly established business unit which performs production activity in underdeveloped municipalities is reduced the income tax for eight years proportionate to the share of the profit thus generated in the total profit of the tax payer.

15. REASONS TO INVEST IN MONTENEGRO?  Politicaly, monetary and macroeconomic stability  Simple START UP (1 euro + 4 days)  National treatement – same rights and obligations as domestic  Free money transfer  The same taxation for everyone  Liberal economic regime of foreign trade  Favorable tax policy 9% profit tax, 7/19% VAT, 9% income tax  International accounting standards  Growth of economic freedoms  Geographical location and climatic conditions