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Malaysian Billionaire To Invest In Pearl Of Dubrovnik Project

One of Malaysia’s largest investors, Vincent Tan has arrived in Croatia to sign a deal which will see hotels, apartments and a marina be built-in Tri sestrice in Doli, 27 kilometres west of Dubrovnik.

The Pearl of Dubrovnik project is reportedly worth around one billion euros, reports daily Slobodna Dalmacija. "We have been negotiating for one year already, we have had meetings in Kuala Lumpur and London, and now we have signed a pre-contract for one of the seven hotels at Tri sestrice (Three sisters). We will hold a press conference at the location of the new hotel in about one month,” said Vincenzo Blagaic from Profectus, the company in charge of the project’s development.

An airport for business jets, golf courses and investment in Bosnia and Herzegovina is also planned for the project which in full completion is reportedly worth around 5 billion euros. Property tycoon Tan, whose also controls the lottery in the Philippines and Malaysia, is estimated to be worth 10 billion USD.

New Aman Resort Cavtat

One of the most luxurious hotel chains Aman Resort will open a new Resort in Cavtat, south of Dubrovnik, in April 2014. Construction works already started

TUI Travel decides for Investments in Croatia

One of the world’s leading tourism players TUI Travel will today sign a strategic partnership agreement with Croatia’s largest privately owned company Agrokor and Karisma Hotels&Resorts as it aggressively prepares to take on the hotelier market in Croatia and the region, reports

The first target reportedly will be a former army complex in the Dubrovnik region which the government intends to give investors 99-year building rights. The powerful trio will have to fight off competition from Turkish company Rixos who have already expressed interest in purchasing the land.

Besides acquiring new hotels, the partnership will aim to capture new tourist markets for Croatia, such as America, Mexico and Brazil. The agreement confirms TUI’s decision to finally invest in Croatia after years of speculation.

Germanwings introduces new lines from Split to Germany


 German low-cost airline Germanwings from this spring is expanding its operations in south-Croatian market with the center of Split, the introduction of two weeks direct flight to Dusseldorf and Hamburg. In addition, the new summer timetable, Germanwings offers flights from Split to Cologne, Stuttgart, Dortmund and Hannover, several times a week for all of these destinations

Given the fact that the offer of flights Germanwings focused primarily on the largest European business cities, flights from Split to the three German cities are a logical continuation of the business of politics.Specifically, while the other German Hamburg, Europe's sixth largest city, with great commercial and industrial importance, Düsseldorf is the center of Germany's fashion industry and multinational companies. It is significant to note that according to data from the German Statistics Office in 2007. in Germany there are more than 225,000 Croatian citizens, of which in Hamburg and Dusseldorf around 8000. All these data suggest the importance of connecting Split with these large centers, which he Germanwings given its importance in the international air transport.

"Condor is one of the most important customers for nine years. Extremely pleased that we Germanwings operates year round and is one of the top three airlines operating to Split, as with the introduction of even these two new destinations to further confirms," ​​said Lukša Novak , Director Split Airport.New destinations to further confirms, "said

I Boljat from commercial service airport Split stressed that Split airport expects 200,000 passengers on Germanwings flights in 2013th year with the introduction of flights to Hamburg and Düsseldorf.

Germanwings, or daughter-company of Lufthansa, in the last year transported over 175,000 passengers on flights to Split, and this is planned for the further growth of five percent. This is an ambitious plan launched in order to gain new customers in Croatia and, in a few months, and represent the highest quality air supply in this part of users in Croatia, in a few months, and represent the highest quality air supply in this part of Europe.

Good News For Boaters In Croatia – Tax Free Fuel

There was good news for boaters in Croatia after it was announced that Croatia will finally join the countries that have the so-called "tax-fee” fuel for yachts. Amendments to the tax law will mean that all vessels sailing on the open sea in Croatia from 1 July will be exempt from VAT.

"That is excellent news for boaters,” said Marina company ACI. Daily newspaper reports that Croatia lost millions of dollars in revenue because it was the only nation in the Mediterranean which charged VAT on fuel for boaters.

One Of Croatia’s Former Luxury Hotels Up For Sale

It was once one of Croatia’s most luxurious hotels, and now Hotel Belvedere in Dubrovnik is up for sale. The completely devastated hotel, which is now bankrupt, will be sold at public tender with a starting price of 126.9 million kuna (16 million euros), reports daily Jutarnji list.

The hotel, which has a prime location in what is the tourist capital of the country, will be sold at public tender on 22 March at the offices of Zagreb public notary Jozica Matko-Ruzdjak. Experts say that the devastation of the hotel is so bad that it would be impossible to simply renovate. They believe that knocking it down and building from scratch is the only solution.

Participants in the tender need to pay a 10% deposit of the starting price 24 hours before the start of the tender. The hotel can not be sold under two-thirds of the advertised starting price.

UAE investors gave offer for Queens Beach in Montenegro

Royal Group of companies from the UAE through its subsidiaries Montenegrin Queen Beach development company submitted a bid for the purchase of the site of the Queen's beach in Budva, learned correspondent agency Anatolian quoted B92 portal. The Arabian company was interested in the site at Queen's Beach, which is on sale October last year, submitted a bid in the amount of 21.18 million euros. Location Queen's Beach consists of 423 000 square meters, of which 188 000 square meters of municipal property bar, while the remaining part belongs to Budva. Vice appointments commission Dragan Simovic announced that in the next 15 days to be tested should be granted. "Do not prejudge I think the offer is fully functioning, the limiting factor was that it can not go below 50 euros per square meter, the price was offered, "he told the media, adding that Simovic was tender bidder left for 90 days, depending willingness of investors to whether these deadlines will be completed negotiations. investment cycle of eight years is worth 180 million euros, with the first phase will be raised central facilities - hotel, spa and marina, as, according to Simovic, they accept. Simovic said he expects negotiations will be successfully completed, and that, as stated in the investment plan, the investor in this year to start building.  

Zagreb among Europe's top places to invest in property

The chart of 20 cities, with Zagreb ranking 5th, was compiled by the Global Property Guide, and published by the Daily Telegraph.

According to the UK daily newspaper, Zagreb’s advantages are strong tourist rental market and moderate taxes, while its disadvantages are multiple foreign ownership limits, moderate to high transaction costs, and unstable economy.
Hungary’s capital Budapest was ranked first on the list. It is followed by Skopje, Amsterdam, Istanbul, Zagreb, Tallinn, Berlin, Rome, Riga, Chisinau, Warsaw, Bucharest, Bratislava, Ljubljana, Vienna, Brussels, Sophia, Prague, Helsinki and Paris.

Turks Investing In Croatian Marinas

Turkish corporation Dogus Group have become the second largest shareholder in the owner of Croatia’s largest chain of Marinas, Adriatic Croatia International (ACI) Club, after purchasing 7,685 ordinary shares valued at 25 million kuna (3.3 million euros), writes Slobodna Dalmacija.

The Dogus Group are reportedly focusing on a strategy to invest heavily in the nautical tourism industry and have currently invested around 150 million euros in Croatia as they work on developing the D-Marin brand of Marinas internationally. In Croatia there are two marinas in the Zadar region and 1 in Sibenik which carry the D-Marin brand.

ACI have a total of 21 marinas in the entire Adriatic.

Asking Prices For Croatian Homes Drop 3.1% In 2012

Asking prices for homes in Croatia dropped 3.1% in 2012, reports CentarNekretnina. Asking prices for homes in the capital Zagreb were down 0.1% in December compared with the previous month, and down 3.5% for the year as demand constantly waivers.

The average asking price for an apartment in Zagreb in December was 1,665 euros per square metre. It was not just the capital which experienced a drop in asking prices. Asking prices on Croatia’s Adriatic coast have also declined. The average asking price for a home on the coast in December was 1,617 euro per square metre, with the average asking price for an apartment on the coast 2,000 euros per square metre.

The most expensive real estate on the coast is still in the Dubrovnik-Neretva County, with the average asking prices in December 2,857 per square metre. The cheapest county was the Lika-Senj County, with the average asking price at 1,605 euros per square metre.

Israeli`s build golf course above Dubrovnik

The Israeli ambassador to Croatia Yosef Amrani says that two major projects are set to start in Croatia from Israeli investors – Israel based Teva Pharmaceutical’s investment in its Croatia based PLIVA company and the building of a golf course above Dubrovnik.

Armani, who was speaking at the traditional Christmas get together with the Croatian-Israeli Business Club, also said that he is satisfied that in the last 12 months all planned projects and investment by Israeli companies in Croatia had materialised.

Croatian-Israeli Business Club President and one of its founders Dragan Primorac, said that the club plays and important part in relations between the two nations and pointed to the recent visit to Croatia by one of the wealthiest American-Israeli businessmen, Itshak Tshuve, who expressed interest in investing in Croatia

House prices Zagreb down, Split up

The average price per square meter for a house in the Croatian capital Zagreb has dropped by 82 euros, whilst in the Dalmatian city of Split it has jumped 656 euros in the last two years. In September this year the average sought after price per square metre in Zagreb was 1,482 euros, and in Split 2,344 euros.

House prices have dropped 5.2% since 2010 in Zagreb, whilst in Split they have increased by a huge 38.9 %, according to statistics from real estate portal

House prices were in general still cheaper than apartment prices, with a 6% difference on average in the capital and a massive 29 % in the eastern city of Osijek.

Split, Pula and Dubrovnik were all towns where house prices were higher than apartments. There was a 5.7% difference in Split, a 8.5% in Pula and an 11.7% difference in Dubrovnik between the two prices.

Banks in Croatia show gross profit of 3.1 bill in the first 9 months

That is 16.6 percent or 616.9 million kuna lower gross profit than the profit before tax by banks, according to unaudited data for 33 banks published in this time last year, reported for the first nine months of 2011.
Total assets of the 32 banks at the end of September, the 2012th amounted to HRK 404.4 billion, which is 0.63 percent less than at the end of last year.
The average capital adequacy ratio of banks in Croatia in the first nine months of this year stood at 20.48 percent (19.44 percent in the same period last year).
From a total of 32 banks profit before tax was reported by 20 banks, while 12 banks recorded a loss totaling a little more than 170 million.
Decline in gross profit compared with the same period last year it has most of the banks, with rare exceptions.
The height of gross profit typically leads Zagreb Bank (ZABA) with 1.08 billion pre-tax profit in the first nine months of this year (according to 1.29 billion in the same period last year).
PBZ Zagreb in the first nine months of this year recorded a profit before tax of 746.2 million million (945.7 million kuna in the same period last year).
Erste Bank & Steiermaerkische had a gross profit of 483.1 million kuna (HRK 577.4 million to the same period last year).
Raiffeisenbank has made a profit of HRK 401.2 million before tax, which is in turn an increase of HRK 86.8 million compared to the same period last year.
To these four banks account for about 88 percent of the total gross profit of all banks.
Height pre-tax profit of Societe Generale-Splitska bank with 142.3 million kuna and Hypo Alpe-Adria-Bank with 99.2 million.
In seventh place in the Croatian Bank owned - Croatian Postal Bank (HPB) to 72.2 million kuna profit before tax.
HPB, compared with the figures for the first nine months of 2011., Published at this time last year, our gross profit increased by 3.9 percent or 2.7 million.

Signs of recovery

With the deterioration of consumer confidence and continued low level of business confidence and a great uncertainty in the overall international environment movement still does not indicate the start of the recovery in economic activity in Croatia, analysts say the Croatian National Bank yesterday published information on economic developments.

They point out that according to the monthly indicators of real activity in the third quarter continued to stagnate, with good tourist season, played a positive role. kept the negative trends on the labor market and inflation rose, reflecting trends in the global markets, especially the prices of energy and food. For cumulative budget revenues continued to record substantial growth, but there was also growth in expenditures, contrary to the original budget. Analysts have suggested that the central bank's monthly data for the third quarter of 2012. point to continued stagnation in economic activity. favorable movements in trade primarily the result of spending by international tourists, and there was an annual increase in the number of tourist nights.
Continued contraction of the construction activity
Industrial production growth in the previous quarter visibly slowed, while the construction activity continued contraction. Growth in total exports of 4.8 percent (seasonally adjusted) in the third quarter of 2012., compared to the previous quarter, largely acted discernible recovery in exports of ships, and increased slightly and export of oil and petroleum products, while exports of other goods stagnated. warns that during the third quarter of 2012. intensified the negative trends in the labor market.Employment continued to decline rapidly, and unemployment increased, after a temporary stabilization in the period from March to June.
Purchasing power continues to decline
Nominal wages have stagnated since the beginning of the year, while the purchasing power of wages during the third quarter continued to decline. Consumer price inflation has accelerated significantly, causing the annual inflation rate increased from four percent in August to five percent in September. This reflects primarily shocks on the supply , particularly the increase in energy prices and food associated with drought in the summer. fundamental inflation also accelerated, from 1.5 to 1.9 percent. increase in foreign indebtedness during the first half of the 2012th was mainly driven by the central government borrowing, but she continued in July and August. Influenced deleveraging other sectors, total gross debt because during July and August fell by 0.7 billion euros at the end of August totaled 45.8 billion . reduction of the external debt, mainly contributed by the usual seasonal deleveraging of banks.
Deficit of 8.7 billion
Based on these data, the consolidated central government revenues in the first eight months were 3.3 percent higher compared to the same period of the 2011thConsolidated central government rose in turn to one percent, although the budget for 2012. intended to be a significant reduction. overall fiscal deficit declined to 1.5 billion compared to the same period last year, and in the period from January to August stood at 8.7 billion. doing the deficit largely financed by new borrowing, and the debt central government continued to grow strongly, reaching the end of August, 173.3 billion, an increase of 19.4 billion compared to the end of 2011, according to the CNB. 

Clinton praises Croatia for big potential

ZAGREB, Oct 31 (Hina) - Croatia has huge potential and the United States is optimistic about its future, the visiting U.S. State Secretary, Hillary Clinton, said at her meeting with Prime Minister Zoran Milanovic in Zagreb on Wednesday, when she also pointed out American companies' great interest in investing in Croatia, the Croatian government stated in a press release.

The U.S. Secretary of State congratulated the Croatian government for the steps it has taken to stabilise the budget.

She said that there was great interest by U.S. companies in investing in Croatia and that the U.S. side was willing to help Croatia with its experience to successfully remove barriers.

Milanovic and Clinton also discussed the forthcoming admission of Croatia to the European Union and the situation in the region. In this context, the premier underlined Croatia's support for its neighbours' Euro-Atlantic aspirations, according to the press release.

"It is Croatia's interest that its neighbours become a part of the European Union," he was quoted as saying. He depicted the EU as a byword for stability.

The two discussed the economic situation in Europe and worldwide and the reaction of the EU and the USA to the fragile global economic situation.

Milanovic thanked the United States for the assistance it has offered Croatia since it gained independence.

He also extended his condolences on the victims of Superstorm Sandy which hit the eastern coast of the USA earlier this week.

Present at the meeting was Croatian Foreign Minister Vesna Pusic, who will host a dinner for Mrs. Clinton later in the evening.

Mrs. Clinton was received by President Ivo Josipovic after her talks with Milanovic.


Merkel wants Croatia in the EU 2013

croatian Times


German Chancellor Angela Merkel says there is no obstacle to Croatia joining the EU next year on July 1.

Speaking to Croatian PM Zoran Milanovic on Thursday, she said: "I count on it that we will be together in the EU on 1 July 2013. We strongly welcome Croatia."

The comments come following media reports that German ratification of Croatia’s entry was in doubt.

But Merkel insisted she thought Croatia would meet all the necessary requirements for entry in time.

Marina for megayachts in Split

With the Extension of its Marina and the new Riva by 600 m, right in front of the future Hilton Hotel Marjan, Split will get a further new attraction. Along the new Riva a new nautical port with 50 moorings will be realised from which 25 moorings will be dedicated for Megayachts. That will give Split again the chance to compete with  the dominating Porto Montenegro when it comes to Megayachts und show its advantages of a Marina very close to a historic old town and a cultural center. The promenade will be widened to 25-35 m and will have new Restaurants, Bars and Cafes. Completion is expected end of 2012.

Pula experiences biggest drop in real estate prices in Croatia

Croatian Times

The western town of Pula has seen the biggest drop in real estate prices in Croatia over the past year, according to

The information portal said it based its conclusions by comparing the advertised prices of apartments in all of Croatia’s major cities.

Between August 2011 and August 2012, flats in Pula were sold at an average 3.9% lower price.

The average asking price fell to 1,402 Euros per square meter.

The average price asked per square meter in Rijeka was 1,467 Euros, in Zagreb 1,731 Euros, and in Split 2,092 Euros.

Across Croatia prices fell by about one percent between August 2011 and August 2012, compared to 4.4 percent in August 2010, 10 percent in the same month of 2009 and as much as 15 percent compared to August 2008.

Montenegro: Azerbaijan state oil company in controversial resort investment

It seems unlikely that Butlins, ClubMed or Westin will branch into the hydrocarbons sector any time soon. But the State Oil and Company of Azerbaijan Republic (Socar) is planning to invest €258m to turn a plot of military land in Montenegro into a tourist resort.

Even competitors say such a chunky investment in Montenegro’s tourism would be a boon for the tiny Balkan country, which is busily establishing itself as a holiday destination.

But it remains to be seen whether Socar will complete the deal – which has run into a legal challenge – let alone make it pay, given its lack of experience in international tourism. 

On July 5, the Montenegrin government announced that it was concluding an agreement with Socar on the 90-year lease of a 241,695 sq metre barracks site at Kumbor, near Herceg Novi, on the scenic Bay of Kotor.

The Azerbaijani group is committed to invest at least €52m in the first four years of the lease, or €258m in the first eight years. It will also pay a fixed rent of €1 per square metre in advance for 45 years of the lease, and a variable rent of 5 per cent of profit.

The process for the conclusion of the contract is currently underway, and the final lease agreement and investment plan are still being drawn up, so details are still patchy. Mammad Nazaraliyev, legal counsel at Socar, told beyondbrics that the company was considering a variety of options, and that a time-frame had yet to be determined.

Socar has a letter of intent from Spain’s Meliá Hotels, and said in its bid that it plans to work with Vizzion Architects, which has experience of developing high-end resorts, giving some idea of what form the project may take.

The company’s choice of a strategically-important coastal spot in a region in which it is also hoping to benefit from pipeline development – including the Trans Adriatic Pipeline (TAP), in which Montenegro has been increasingly involved – may cause rumblings in the Balkans.

But Petar Ivanovic, chief executive of the Montenegrin Investment Promotion Agency, insists there are no links between tourism and oil in the plan. He  says the land remains the property of the government, and the tender specified not only that the area must be developed as a resort, but set out the parameters of construction.

Ivanovic adds that Socar’s move into tourism in Montenegro is no more unusual than that of Canadian metals magnate Peter Munk, the chief investor behind Porto Montenegro, one of the country’s most high-profile resorts (which is also located on military land, just across the bay from Kumbor).

Meanwhile, the award of the tender to Socar faces a legal challenge in Montenegro’s Supreme Court by the losing bidder, NCH Capital, a US-based investment fund with substantial interests in the Balkans. It offered more cash than Socar – €2 a square metre in rent plus 5.1 per cent of the profit.

NCH lodged an official complaint about the Azerbaijani bid, which was rejected by the Privatisation Council on the grounds that it was submitted too late, a claim that NCH rejects.

A NCH representative told beyondbrics that its claim rests on two points: that Socar’s bid should have been ruled out on technical grounds; and that NCH’s was "superior from a scoring perspective both quantitatively and qualitatively”.

He said: "You don’t see BP and Exxon building resorts, and there’s a reason for that.”

But Montenegrin officials robustly defend the tender process. Ivanovic told beyondbrics that the process had been transparent and the decision approved by several Montenegrin institutions including parliament.  Given the weight of official backing, it seem unlikely that NCH’s legal action will succeed.

As for the Azeris, the project offers an interesting opportunity to diversify.

"One of the Socar’s strategic objectives in the long-term perspective is the expansion of its business in different regions, including Eastern Europe,” Nazaraliyev said. "In strict compliance with this strategic objective, Socar considers the opportunity offered by the Montenegro government as a chance to continue its successful projects.”

But Socar’s  current tourist operations are limited to several complexes in Azerbaijan primarily intended for the use of oil workers and their families. It will need all the help of the expert partners it is planning to hire if it is to develop a worth rival to Porto Montenegro.

Croatia among five top countries

Croatia has been ranked among the top five destinations in the world to retire in, according to internet giant Yahoo.

The American multinational internet corporation has ranked the top five countries in the world for spending one's retirement years in, reports website, with Croatia, together with France, Italy, Ireland and Spain making up the top five.

"Although Croatia has an unusual and complicated history, the people are proudly open and friendly and it has incredibly beautiful nature," writes Yahoo, adding that the region of Istria has a surreal beauty.

"Wherever you look in Istria, something is growing, either olives, grapes, figs, tomatoes, pumpkins or blackberries," said Yahoo.

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