Arbitration In Montenegro

This note provides an overview of Montenegro's arbitration framework, exploring its legal basis, procedural aspects, and advantages.

Background

As a former federal republic of the ex-Yugoslavia, Montenegro was part of its legal framework. Yugoslavia founded the Foreign Trade Arbitration in Belgrade in 1947.¹ Although arbitration was first reserved only for disputes with foreigners, the system was changed in 1963, allowing arbitration between domestic companies.² However, a significant breakthrough was made after 1990, expanding arbitration to all domestic legal entities, including both individuals and companies.

Since 2006, Montenegro has been an independent state. In 2015, arbitration in Montenegro was elevated to a higher level by enacting the Montenegrin Arbitration Act, based on the UNCITRAL Model Law.³ With this Arbitration Act, arbitration was finally uniformly regulated, covering, amongst others, the recognition and enforcement of arbitral awards