Hungary and the United Arab Emirates on Wednesday signed a 5 billion euro ($5.5 billion) deal that will see a run-down Budapest neighborhood injected with some Dubai glitz, a project that’s drawn criticism even before being formalized.
Eagle Hills Properties LLC will partner with the government in Budapest to develop a partly disused railway station, Hungarian Foreign Minister Peter Szijjarto said after signing the deal with UAE Minister of State for Foreign Trade, Thani Al Zeyoudi.
The Hungarian government was planning to spend about €1 billion to improve infrastructure around the area, Janos Lazar, the minister responsible for construction and transportation, said late last year. Prime Minister Viktor Orban mandated the construction of a major project reminiscent of Dubai in terms of its grandeur, Lazar said at the time.
The municipal government has criticized the planned new hub as an unwelcome addition to Budapest’s historic skyline, which doesn’t include much in the way of the glimmering skyscrapers that Dubai’s famous for.
Abu Dhabi-based Eagle Hills is one of the biggest Gulf developers, with large projects spanning Europe, Africa and the Middle East. The firm has been expanding in countries that need a supply of modern homes and offices, and has large mixed-use projects in Albania, Serbia and Ethiopia.
It’s led by Mohamed Alabbar, who founded Emaar Properties PJSC — the firm that built the world’s tallest tower in Dubai.