Hungary and the United Arab Emirates have affirmed their commitment to expanding cooperation in several areas based on mutual respect, the Ministry of Foreign Affairs and Trade said after Hungarian Prime Minister Viktor Orban wound up his first visit to Abu Dhabi on January 29.

The prime minister held talks with UAE President and Abu Dhabi ruler Sheikh Mohammed bin Zayed Al Nahyan, who later tweeted that the parties worked on enhancing collaboration in AI, renewable energy, and other key areas and also expressed his commitment to building long-term partnerships.

Peter Szijjarto later added that partnerships between Hungarian and UAE businesses are starting in the areas of crude and gas production as well as renewables. The sides agreed to establish closer cooperation in the areas of banking, digital industry, telecommunications, defence and the food industry.

Hungary’s chief diplomat noted efforts to reach a broad free trade agreement between the EU and the Gulf Cooperation Council had been unsuccessful, and pressed for the start of negotiations on a separate free trade agreement with the UAE.

Gellert Jaszai, chairman of local ICT giant 4iG, said the talks focused on telecoms, infrastructure development, space technology, and advanced technology solutions. He also highlighted planned joint investments in Central and Eastern Europe.

Shares of 4iG began to soar in December after news broke that Jaszai, a close associate of Lorinc Meszaros, had attended a meeting in Florida with Viktor Orban, where he presented 4iG's space industry plans to Elon Musk. The stock price surged 48% this year to hit a historic high.

Hungary’s defence minister signed an MoU with small arms manufacturer the Edge Group on cooperation in defence industry R&D&I. Budapest agreed to buy Caracal sniper rifles from the UAE manufacturer.

The government’s communiqué did not elaborate on whether the parties discussed the controversial "Mini Dubai" project, a large-scale urban development in Budapest, led by Mohamed Alabbar’s Eagle Hills Properties, the developer behind Dubai's Burj Khalifa.

The plan involves transforming a 100-hectare area near the Rakosrendezo railway station into a modern district featuring luxury apartments, commercial spaces and skyscrapers as high as 500 metres.

The Hungarian government supports the project, viewing it as a "flagship" initiative to enhance bilateral cooperation and stimulate Budapest's development.

The project has faced opposition from Budapest's municipal leadership and local residents. Concerns have been raised about the scale of the development, its impact on the city's character and the lack of public consultation.

As expected, the city council on Wednesday voted to exercise its pre-emptive right to buy the plot.

The proposal submitted by Mayor Gergely Karacsony was approved with 23 votes in favour and 10 votes against, cast by representatives of Fidesz.

"The contract that the Hungarian state concluded with the Arab investors is about nothing more than how to sell Hungary's most valuable land without a competitive bidding process," Karacsony said.

The state sold the 85-hectare development area to Eagle Hills for HUF51bn (€120mn) without calling a tender, with the purchase price due to be paid by 2039. Once the buyer pays 25% of the total purchase price, it obtains ownership rights over properties on the plot.

David Vitezy, the leader of the Podmaniczky Movement group in the city assembly with three members, said the purchase agreement sets as a condition the creation of a green area no larger than 10% of the entire plot, the construction of huge parking lot, and the construction of an office building as high as 500 metres high. The contract also allows the developer to erect a mosque on the site.

The city assembly established that the investment project planned by the Hungarian government and the UAE-based investor, in its current form, ran counter to the preservation of Budapest's built heritage and the maintenance of its world heritage status, and ultimately, to the interests of Budapest residents.

According to political analysts, the project could remain a hot political issue in the 2026 election campaign.

Tisza Party leader Peter Magyar, who initially remained silent on the matter, has spoken out sharply against the project in the last couple of days and warned that if legal actions fail, he would take his supporters to the streets in protest.