The United Arab Emirates (UAE) has inked a landmark deal with Hungary to embark on a grand mixed-use property project in Budapest. Valued at an initial capital investment of €5.8 billion ($6.3 billion), the project holds the potential to escalate to €10 billion in subsequent phases, revealed Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade.
Eagle Hills, an Abu Dhabi-based property developer, has been selected by the UAE to spearhead the project following the ratification of the deal. This government-to-government agreement lays the groundwork for significant investments in Hungary’s property development sector, noted Dr. Al Zeyoudi.
The comprehensive economic cooperation agreement signed between the two countries encompasses priority sectors such as real estate, infrastructure, industry, commerce, investment, tourism, and logistics. It aims to amplify trade and investment flows, building on the remarkable growth witnessed in UAE-Hungary non-oil trade, which soared by 23.1% in 2023, surpassing $1.127 billion.
Eagle Hills, chaired by Mohamed Alabbar, founder of Emaar Properties, boasts an extensive portfolio of projects across various countries. The Budapest endeavor is poised to be transformative, featuring a blend of residential and commercial towers strategically located with connectivity to the railway network and direct access to the airport, as outlined by Dr. Al Zeyoudi.
While the project’s completion is anticipated to span a couple of years, the immediate focus is on finalizing the business terms between Eagle Hills and the Hungarian government. Dr. Al Zeyoudi emphasized the project’s phased approach, with an initial investment of €5.8 billion prioritized to ensure swift implementation and maintain project quality.
On a broader scale, the UAE is actively exploring investment opportunities in key sectors like clean energy, logistics, and food security. The country is poised to surpass its target of signing 26 Comprehensive Economic Partnership Agreements (Cepas), with plans underway to conclude an additional seven to eight deals in 2024.
Despite global challenges such as the Red Sea shipping attacks and the lingering impacts of the COVID-19 pandemic, the UAE remains resilient in its pursuit of diverse trade routes and markets. Dr. Al Zeyoudi highlighted ongoing efforts to bolster the country’s trade position, including railway projects and collaborations with neighbouring countries for enhanced trade facilitation.
Furthermore, the successful hosting of the World Trade Organisation’s 13th Ministerial Conference in Abu Dhabi has set the stage for continued dialogue on critical topics, underscoring the UAE’s commitment to advancing global trade initiatives.
As the UAE charts a course towards economic diversification and sustainable growth, collaborations such as the Budapest project exemplify its proactive approach in forging strategic partnerships to drive progress and prosperity on both regional and global fronts.
