Belgrade Waterfront – a special law and the contract with Eagle Hills

Category: Money and deals

Period: from 27 Jun 2014

Outcome: No one investigated (as of 31 Mar 2017)

The „Belgrade Waterfront“ project was launched in 2014 as a joint venture between Serbia and the United Arab Emirates company Eagle Hills, under an intergovernmental agreement and without a public tender, and a special law cleared the way for expropriation for the residential and commercial complex. Serbia holds 32 percent of the joint company and leased it the land for 99 years free of charge, while the investor committed to €300 million. A criminal complaint and a motion to have the contract declared void have not led to any known proceedings, and in 2026 the National Assembly extended the deadline for expropriation by ten years because it had not been completed.

Plans and a special law

The project was launched in 2014 as a joint venture between the Republic of Serbia and Eagle Hills, a company from the United Arab Emirates. The contract was concluded under an intergovernmental agreement, without a public tender and with no obligation to publish it.

For the project, the General Urban Plan was amended within a few months and a decree on the Spatial Plan for the Special Purpose Area was adopted, and in April 2015 the National Assembly passed a special law (lex specialis) declaring a public interest in expropriating land for the residential and commercial complex.

The joint venture agreement

The joint venture agreement was signed on 26 April 2015 but was only published in September, 147 days later. Serbia holds 32% of the joint venture and the UAE partner 68%. The land was leased to the company for 99 years free of charge; the investor committed €300 million (€150 million in equity and €150 million in loans), and Serbia committed to clearing the land by the end of June 2016.

The demolitions in Hercegovačka Street on the night of 24–25 April 2016 are covered as a separate affair (Savamala).

Criticism of the contract and Mali's response

The Don't Let Belgrade D(r)own initiative and legal experts argued that under the contract the state had given up part of its sovereignty and that, instead of the billions announced, the investor was putting in €300 million. Mayor Siniša Mali replied that in return the state had received 32% of the equity.

Complaints that went nowhere

In 2015, MP Balša Božović filed a criminal complaint against minister Zorana Mihajlović, and in 2017 Don't Let Belgrade D(r)own asked the Republic Public Prosecutor's Office to have the contract declared void. Neither led to any known proceedings.

Costs to the state and expansion

By mid-2019, the state had spent around €50 million from the budget on expropriation.

In 2025 the Government expanded the project area to around 329 hectares, and in 2026 the National Assembly extended the deadline for expropriation by ten years because expropriation had not been completed.

Participants

Government of the Republic of Serbia: It published the contract giving the joint company land for 99 years free of charge 147 days later, and in 2025 it doubled the project's area (responsible)
National Assembly of the Republic of Serbia: In 2015 it passed a special expropriation law for the project, which was needed because under the general law the state could not have done so (responsible)
City of Belgrade / City Administration: According to RFE and Vreme, the General Plan of Belgrade was amended within a few months to accommodate the project, and the High-Rise Buildings Study was revoked (responsible)
Belgrade Waterfront d.o.o.: Under the contract it leases state land for 99 years free of charge; the permit for the museum was refused because it had not met its obligation to build a heating pipeline (responsible)
Eagle Hills: Under the published contract, the UAE partner gets 68% of the joint company, to which the state leases land for 99 years free of charge (responsible)
Zorana Mihajlović: According to a criminal complaint by a DS MP, she caused citizens enormous damage by signing the joint venture agreement in 2015 (responsible)
Siniša Mali: He promised a public contract, defended the free lease and denied that the museum's permit had been refused (commented on the case)
Aleksandar Vučić: As a candidate in 2012 he announced a tender for the project, and in 2014 he presented the sole investor's master plan with Alabar (commented on the case)
Mohamed Alabar: As chairman of Eagle Hills, he signed the 2015 joint venture agreement giving the UAE partner 68% of the equity (responsible)
Don't Let Belgrade D(r)own: It argued that through the agreement the state was giving up its sovereignty, and proposed that the prosecution file a lawsuit to have it declared null and void (oversight and the public)
Balša Božović: He allegedly filed a criminal complaint against the agreement's signatory over damage caused to citizens (oversight and the public)
Insajder: It reported that by July 2019 about €50.1 million had been allocated from the budget for expropriation (oversight and the public)
State Audit Institution: Its audit found that about €10.9 million was paid for the BAS station and more than €16 million for Eurosalon (oversight and the public)
First Basic Public Prosecutor's Office in Belgrade: It allegedly received a criminal complaint against the agreement's signatory over damage the MP believes was caused (investigation and courts)
Supreme Public Prosecutor's Office: In 2017 it received a proposal for a lawsuit seeking to have the contract declared null and void; no outcome was found (investigation and courts)