The arrival of the Arab company “Eagle Hills,” which won the tender to lease most of the beaches in Ulcinj, has stirred debate in Montenegro.

This company aims to transform the southernmost Montenegrin city into what they call a “New Dubai.” While tensions have somewhat eased after local leaseholders were granted control of the beaches for this season, controversies surrounding Ulcinj’s long-term vision remain unresolved.

Specifically, draft laws that would transfer coastal zone management to local municipalities have been submitted to parliament by the mayors of coastal towns through their deputies. In a meeting with the Prime Minister, it was agreed that the municipalities would nominate specific projects to be presented to investor Mohamed Alabbar—however, with the understanding that Ulcinj would not accept the current investment proposal for Velika Plaza.

The proposed development project for Ulcinj involves a 99-year lease of Velika Plaza and a $30 billion investment intended to attract Western tourists. But local leaseholders and community leaders in Ulcinj oppose the idea of turning their town into a new Dubai, arguing that it is not a desert.

One of them, Albert Kastrati, says they welcome investments in Ulcinj’s beaches, but the focus must be on the local population, Euronews Serbia reports.

“Of course, we are in favor of investments—but not like this. It’s not that we’re entering through the main door, but rather through the side door, and definitely without the agreement of the local community and professional public,” he said.