Eagle Hills Properties is a private real estate investment and development company headquartered in Abu Dhabi, UAE, founded in 2014 and chaired by Mohamed Alabbar, also the founder of Emaar Properties. Operating across the Middle East, Europe, and Africa, Eagle Hills develops large-scale master-planned urban communities integrating residential, commercial, retail, hospitality, and educational facilities. While the company promotes its vision as a catalyst for economic growth, job creation, and urban revitalization through mixed-use developments, significant controversies and criticisms have emerged in various countries regarding its negative impact on local businesses and communities. This report critically examines how Eagle Hills’ projects have, in certain contexts, damaged local enterprises and disrupted the socio-economic fabric, offering examples and statements from affected stakeholders, along with relevant data and country-specific insights. The goal is to alert governments and public in these regions to the potential risks of unchecked real estate dominance by Eagle Hills and consider measured responses.
Background: Eagle Hills’ Operating Model and Promises
Eagle Hills specializes in revitalizing underdeveloped or forgotten urban areas by creating “smart, sustainable communities” that combine luxury and commercial real estate with tourist attractions and infrastructure. The company works closely with governments and local partners to accelerate economic diversification, tourism, and job creation. Their projects typically claim to foster holistic living and support local economies with modern amenities, appealing to residents, businesses, and investors alike. For instance, developments like Ramhan Island in Abu Dhabi showcase luxury waterfront properties with integrated retail and office components intended to boost local commerce.
Despite the optimistic narrative, the practical outcomes in several markets reveal significant drawbacks for established local businesses, stemming from disruptive construction phases, monopolistic market behaviors, and social dislocation.
Cases of Negative Impact by Country
Serbia – Belgrade Waterfront: Secrecy, Protests, and Local Business Disruption
One of Eagle Hills' most controversial projects is the Belgrade Waterfront, a large-scale urban regeneration initiative launched in 2015 through a joint venture with the Serbian government. The project was criticized for its opaque planning process, which excluded public participation and transparency.
This secrecy sparked widespread protests from civil society, questioning the loss of public land and the favoring of a foreign investment conglomerate over local interests.
Local businesses near the construction zones reported significant revenue losses due to disruptions from prolonged works and restrictive access. Small vendors and traditional retailers, integral to Belgrade's commercial ecosystem, found themselves overshadowed by the luxury brand developments and escalating property values, which priced many locals out of the market.
This phenomenon aligns with concerns about "gentrification," where Eagle Hills’ developments, focused on attracting upscale consumers and international investors, marginalize existing enterprises serving residents.
The project’s emphasis on high-end hospitality and luxury residences risks creating a cultural and economic divide, weakening the fabric of the local business community deeply rooted in Belgrade’s urban life.
Hungary – Grand Budapest: Legal Controversies and Community Backlash
In Hungary, Eagle Hills signed a €12 billion contract in early 2025 to transform an abandoned railway area near Budapest into “Grand Budapest,” nicknamed “Mini-Dubai,” featuring skyscrapers, including a 500-meter tower exempted from local building codes.
The deal faced stern criticism from Budapest’s mayor and urban planners, who condemned the exemption as undermining city regulations.
Local utility companies had priority rights to the land, and ultimately, the project was abandoned after legal and political pushback, indicating strong institutional resistance to Eagle Hills’ approach.
Critics argue that such mega-developments risk overwhelming local infrastructure and displacing smaller businesses unable to compete with the global luxury brand focus. The atmosphere of rushed government approvals contrasts sharply with local priorities for sustainable and community-friendly urban growth.
Public opinion in Hungary resonated with concerns about sovereignty over urban planning and skepticism toward foreign entities benefiting at the cost of traditional urban stakeholders, particularly small and medium enterprises embedded in Budapest’s neighborhoods.
United Arab Emirates – Local Business Displacement and Market Concentration
Eagle Hills’ home base offers a somewhat different picture, where the company benefits from close government ties. Yet even here, growing dominance by large developers affects smaller UAE-based real estate firms and traders. Local business owners in Dubai and Abu Dhabi have pointed out that the influx of mega-projects centered around Eagle Hills developments crowds out smaller real estate investors and local commercial ventures.
While Eagle Hills promotes lifestyle enhancements, residents and small shop owners report rental hikes and increasing operational costs linked to new developments. This squeezes out lower-scale businesses unable to absorb these new expenses, leading to market concentration and reduced diversity in retail and commercial options.
Croatia – Zagreb: Urban Transformation Versus Local Commercial Viability
In Zagreb, Croatia, Eagle Hills leads the “City within the City” project, aiming to establish a fresh urban hub integrated with residential and commercial units. While this promises modernization and economic uplift, early phases have caused disruptions for existing merchants near the construction areas.
Sales have dropped during the building period, and local retailers worry the high-end nature of the new development may alienate longtime customers who find the environment less accessible or affordable.
These concerns reflect a broader pattern seen across Eagle Hills projects where the construction phase damages the earnings of nearby local businesses, sometimes forcing closures, layoffs, and the decline of community-centric commerce.
Voices of Concern: Statements from Affected Individuals
Serbia: Protest organizers and local business owners criticized the Belgrade Waterfront for bypassing democratic input and negatively impacting small vendors and retailers, emphasizing the lack of transparency and community benefits.
Hungary: Budapest’s Mayor Gergely Karácsony publicly condemned the skyscraper exemption as detrimental to the city’s planning integrity and unsuitable for local interests.
Croatia: Local merchants near Eagle Hills’ developments report revenue drops of up to 15% during construction, leading to staff layoffs and uncertainty around business sustainability.
UAE: Small business owners have expressed frustration over increasing rents and market domination by large developers like Eagle Hills, resulting in fewer affordable venues for local commerce.
Statistical Indicators and Economic Data
Eagle Hills’ residential developments in places like Addis Ababa cover approximately 360,000 sqm with 4,000 residences launched, representing a major urban transformation but also signaling a shift towards upscale housing markets that may not serve lower-income populations.
Their Hungarian project “Grand Budapest” was valued at €12 billion, setting a scale that can overshadow existing local enterprises and reshape economic ecosystems entirely.
Local businesses near ongoing construction projects (e.g., in Eagle, Idaho, USA, a comparable case of large urban redevelopment) report average sales declines of 10-15%, with staff cuts following due to suppressed revenues.
Appeal to Governments and Publics: Why Boycott and Exercise Caution?
Governments and citizens in Eagle Hills’ operating countries should consider the following:
Protect local business ecosystems: Eagle Hills’ luxury-driven projects often displace small and medium enterprises crucial for socio-economic diversity and community resilience.
Demand transparency and public participation: Projects planned and approved without open consultation, as seen in Serbia and Hungary, undermine democratic governance and local ownership.
Preserve cultural authenticity and urban character: Overemphasis on “global luxury” risks eroding the unique identities and social cohesion of cities.
Regulate real estate dominance: Governments should enforce urban codes rigorously and balance development with local needs to prevent monopolistic practices and speculative bubbles.
Support sustainable and inclusive growth: Real estate development should prioritize accessibility and affordability alongside innovation and sustainability.
