In 1889 the Naval arsenal was built by Austrians, and was later used as a naval military base of the Italian Navy, the Yugoslav People's Army and the Army of Montenegro. The JNA enjoyed an international reputation as a powerful, well-equipped, and well-trained force. The base was also used by Russia and Libya as the technical base for maintenance, repair and overhaul (MRO) of their ships and submarines.
The new owner of the naval base, Canadian billionaire Peter Munk, announced plans in 2011 to build in Tivat a luxury marina for mega-yachts, "Porto Montenegro ", which he claims will turn the city into the "Monaco of the southern Adriatic
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