Royal Group from the Arab Emirate abandons investment project in Montenegro

Royal Group from the Arab Emirate abandons investment project in Montenegro

Podgorica, April 6, 2015/ Independent Balkan News Agency

By Adnan Prekic

The company Royal Group, behind which stands royal family of the United Arab Emirates, gave up on the investment in a tourist complex on “King’s Beach”. As it is explained, the company Royal Group has give up on their investments due to the months-long campaign that compromised their company, the royal family and the United Arab Emirates by certain high ranking officials and the media in Montenegro. Against the construction of this tourist complex was the Social Democratic Party, the smaller member of the ruling coalition. This party claim that the announced investment is unlawful and will cause damage to Montenegro.

Montenegro has remained without an investment of approximately 300 million euros. Among the ruling coalition parties there was no consensus on this project, so the investor from the Arab Emirate, after several months of negotiations give up on the project of building luxurious hotel complex.

According to the agreement on cooperation, which was supposed to by verified by the Montenegrin Parliament, investors from the Arab emirates were planning to offer 21 million euros for the purchase of land and a lease for 90 years. The proposed contract implied that they receive the entire complex in lease, and that it will be a closed club hotel, where only club members will be allowed to enter. It is estimated that the investor for lease of the beach for a year on average would pay around 100,000 euros.

Investors from the United Arab Emirates had announced an investment of 300 million euros. With this amount of money they planned to build a hotel with 100 rooms, 30 spa villas, a small port for yachts and many other facilities. The new hotel would employ at least 300 people. It was planned that the entire investment be managed by the renowned Jumeirah Group based in Dubai. The company manages a number of luxury hotels, including the Burj Al Arab in Dubai. Jumeirah Hotels & Resorts Group is considered one of the most luxurious and innovative in the world. They own many hotels in world capitals: Dubai, Abu Dhabi, Baku, London, Kuwait, Maldives, Shanghai, Mallorca, Frankfurt, Istanbul, Rome. All hotels are ranked from 5 to 7 stars.

The location – Queen’s Beach Dubovica (photo), where they were planning to construct the luxury hotel is one of the most exclusive locations on the Montenegrin coast. Located in the bay of the Adriatic Sea, this beach is an untouched part of nature in the Mediterranean.