‘Mini-Dubai’ being built in Budapest amid EUR5bn UAE-Hungary deal

The UAE and Hungary have inked a new economic cooperation deal to bolster trade and investment ties between the two nations, reported state news agency WAM.

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Péter Szijjártó, Hungary’s Minister of Foreign Affairs and Trade, signed the agreement in Budapest.

The agreement focuses on enhancing bilateral relations and promoting growth in key sectors like industry, commerce, investment, tourism, logistics, infrastructure, and real estate.

It aims to ramp up non-oil trade, which has surged significantly in recent years, reaching over US$1.127bn in 2023, marking a threefold increase from $409m in 2019.

Al Zeyoudi emphasised that the deal lays the groundwork for increased trade and investment, leveraging the economic potential of both nations. He highlighted the shared goal of sustainable economic growth and fostering collaboration between the private sectors of the UAE and Hungary.

Pleasure to meet with HE Péter Szijjártó, Minister of Foreign Affairs & Trade of Hungary & sign an economic cooperation agreement that will increase trade & investment flows between our nations & create opportunities for partnerships between our private sectors in key areas 🇦🇪🇭🇺 pic.twitter.com/SKBgem9G9f

— د. ثاني أحمد الزيودي (@ThaniAlZeyoudi) March 14, 2024

Szijjártó hailed the UAE as a crucial trade partner for Hungary in the Arab region and expressed optimism about the future of bilateral relations. He described the agreement as a significant milestone, setting the stage for fruitful cooperation in priority sectors, leading to more diverse and sustainable economic ties.

Mini-Dubai in Budapest

According to reports, the meeting also finalised a EUR5bn deal that will see a UAE company undertake redevelopment of a district in Hungary’s capital Budapest. Bloomberg reported that Eagle Hills Properties from the UAE will participate in the real estate development of a railway district, along with the Hungarian government to build state-of-the-art facilities and a mixed-use neighbourhood.

The announcement was reportedly made by Hungarian Foreign Minister Peter Szijjarto following the signing ceremony with UAE Minister of State for Foreign Trade. The new urban district will be built in the vicinity of the Rákosrendező railway station in the capital.

In the joint press conference held after the signing, the Hungarian foreign minister noted that “It was important in economic cooperation between two countries to have a flagship project, which in this case could be the construction of a new Budapest district in a particularly dilapidated area. Thus, the agreement was signed, which will provide the framework for a complex development plan of the real estate development giant Eagle Hills in the area around the Rákosrendező railway station.”

Local media, Hungary Today, quoted the minister as saying, “This is a EUR5bn investment. It will create a new district, a new neighborhood around the Rákosrendező railway station and the surrounding derelict industrial areas.”

Hungarian media has reported that Prime Minister Viktor Orban’s government could invest between EUR800m to 1bn in the development, however, official figures are not available.

First revealed in 2023 by Hungarian Minister Janos Lazar, the project was said to cost approximately EUR1bn, to enhance and upscale the neighbourhood, which is said to be an abandoned one. According to Lazar, Prime Minister Viktor Orban emphasised a vision to develop the district that evoked the style of Dubai.