A reliable and efficient arbitration system is not only a matter of justice but also of economic stability. Strengthening legal certainty through arbitration can attract new investments, reduce the burden on courts, and create a reliable business environment—this was the conclusion at the opening of the Regional Arbitration Conference in Podgorica.

This event, which brings together over 70 legal and economic experts, government representatives, international organisations, and business leaders, is organised by the AIRE Centre and the Ministry of Justice of Montenegro, with the support of the British Embassy in Podgorica. The conference focuses on improving arbitration procedures in the region and aligning them with international standards.

Nik Gjeloshaj, Deputy Prime Minister of Montenegro for Economic Policy, emphasised that strengthening the arbitration system is crucial for economic development and attracting foreign investment.

“Montenegro wants to be a secure destination for investors. This means legal predictability, efficient dispute resolution mechanisms, and transparency in the judicial system. A strong arbitration framework provides investors with the confidence that their rights will be protected, leading to greater investment and a stronger economy,” Gjeloshaj stated.

The Minister of Justice of Montenegro, Bojan Božović, stressed that strengthening the arbitration framework represents an important step in the process of EU accession.

“The European Union places special emphasis on alternative dispute resolution mechanisms as part of judicial reforms. Montenegro is moving towards becoming a regional centre for arbitration. Improving arbitration means reducing court congestion, resolving commercial disputes more quickly, and strengthening investor confidence. This conference is an opportunity to identify key reforms that will bring us closer to EU standards,” said Božović.

Biljana Braithwaite, Director of the Western Balkans Programme at the AIRE Centre, highlighted that arbitration should not be viewed solely through a legal lens but also as a tool for economic development.

“A reliable arbitration system brings a dual benefit—it increases legal certainty and strengthens the economy. Investors seek efficient dispute resolution mechanisms so they can operate without unpredictable legal obstacles. Our project is not just a legal analysis but also a concrete contribution to improving the investment climate in Montenegro and the region,” Braithwaite emphasised.

She noted that as part of this project, the AIRE Centre conducted a study titled Montenegro’s Arbitration Framework and Actionable Recommendations, with preliminary findings presented at the conference.

AIRE Centre’s Project Manager, Vanja Radević, presented the key findings of the study and examples of best practices.

“Strengthening legal certainty and an efficient judicial system is crucial for attracting foreign investment. It is necessary to improve existing arbitration capacities, empower commercial courts, and consider establishing bodies that can mediate between investors and the government to facilitate business operations and reduce disputes,” Radević stated.

She particularly highlighted the example of Singapore, which has become a global centre for arbitration due to its efficient judicial system and government support.

“Learning from the world’s best practices shows us the way forward. By creating a favourable business environment where investors trust in legal certainty and effective dispute resolution, we can make a significant step towards strengthening the economy,” Radević concluded.

Sarah Pilbeam, Deputy Head of Mission at the British Embassy in Podgorica, reminded participants of the importance of arbitration for the investment climate and economic development.

“The United Kingdom strongly supports reforms that strengthen the rule of law and economic prosperity. A reliable arbitration system contributes to investor confidence, reduces pressure on courts, and improves the business climate. The UK stands by Montenegro in its efforts to improve arbitration and align it with international standards,” Pilbeam stated.

She added that UK experience shows that arbitration can significantly reduce legal costs, accelerate dispute resolution, and enhance the investment climate.

More information is available on the official website of the AIRE Centre.

Key Takeaways from the Conference:

1. Arbitration must be Montenegro’s first choice for resolving commercial disputes – International best practices show that arbitration is faster, more cost-effective, and more predictable than traditional litigation. A robust arbitration system will attract investors who seek certainty and efficiency in dispute resolution.
2. Montenegro needs to strengthen its arbitration framework – While the country has aligned its arbitration law with UNCITRAL Model Law, further training, capacity-building, and institutional development are necessary to make arbitration more effective and widely used.
3. Judicial support and enforcement of arbitration awards are crucial – Courts play a key role in ensuring arbitration works. Strengthening the judiciary’s capacity to enforce arbitration awards swiftly and predictably will improve investor confidence.
4. Government and institutional backing are essential – Arbitration thrives in jurisdictions where institutions provide strong support and where court intervention is minimal but effective. Montenegro must ensure continuous engagement between arbitrators, legal professionals, and the business sector.
5. Montenegro must position itself as a regional arbitration hub – With targeted reforms, Montenegro has the potential to become a recognised centre for arbitration in the Western Balkans, reducing reliance on foreign arbitration institutions and strengthening its investment climate.
6. Arbitration reform is not only a matter of economic development but also a strategic pillar in Montenegro’s path to EU accession, particularly under Chapter 23 (Judiciary and Fundamental Rights). The European Commission actively supports alternative dispute resolution mechanisms as part of judicial reform.