Prime Minister Viktor Orban is on a two-day official visit to the United Arab Emirates, where he will hold talks with UAE President and Abu Dhabi ruler Sheikh Mohammed bin Zayed Al Nahyan, as well as leaders of Emirati companies, according to a brief statement from his press office on January 28.

Hungary's economy can grow well above the European average if Hungarian companies expand globally. "The formula is simple: new opportunities lead to emerging Hungarian businesses, rising wages, and ultimately, a stronger middle class," he wrote on social media.

The veteran leader will discuss the controversial real estate development project of Eagle Hills during his first visit to the Emirates since taking office, according to Foreign Minister Peter Szijjarto, who said all necessary agreements for the project had already been finalized and that cooperation could now be extended to new areas.

"The strategic cooperation will cover the areas of food, energy and digital developments, and the two countries will sign a defence industry cooperation agreement in Abu Dhabi," he added.

Mohamed Alabbar's flagship company, Eagle Hills, is planning to build a new city quarter from a €12bn investment in a brownfield area in northeastern Budapest. The project, initially nicknamed Mini-Dubai and now renamed Grand Budapest, will include the construction of luxury apartments, office buildings, and potentially Europe’s tallest skyscraper, standing between 250 and 500 metres high.

The project has been classified as a "national economic interest," granting the developer significant autonomy over what can be built on the site. Plans include the construction of a mosque as well.

Just days after the government signed the contract to sell the plot to Eagle Hills Group for HUF 51bn (€120mn), the state asset manager informed the Budapest local government that it had the right of first purchase for the area.

Mayor Gergely Karácsony confirmed that the company owned by the local government will exercise its right of pre-emption for the entire Rakosrendezo area following a vote by the city council on Wednesday. He also sent a message to the prime minister, saying that if he truly represents Hungary, he will be obliged to tell his business partners that the "shady Mini-Dubai" project is off the table.

The mayor called the contract signed with the UAE investor a scandalous and shady backdoor deal. Instead of building luxury apartments for foreigners, the local government will move ahead with its Park City project, which aims to provide affordable housing for locals, he added.

According to independent hvg.hu, citing Budapest politician David Vitézy, the Arab investors behind the project are opening a sales office in a prestigious building on Andrassy Boulevard, in which Fidesz strongman Janos Lazar had a 10% stake. Company data registers show that the Minister of Transport and Construction, who has negotiated with the UAE investors, sold his stake this week.

Last week, reports emerged that private equity funds linked to Viktor Orban’s cronies had acquired a stake in the company, which also owns part of the project site, further complicating the legal status of the area, analysts said.

Vsquare reported last week that a company associated with Jared Kushner, Donald Trump's son-in-law, may become involved in the development project.