Croatia’s Zagreb Courts Controversy with Potential UAE Makeover

But the potential UAE investment risks running into the same kind of objections that have dogged the Belgrade Waterfront development - from architects and residents fearful of the impact on their city, to civil society organisations and experts who decry the lack of transparency that frequently characterise such projects.

"Croatian media should rise to the challenge and keep the attention around this deal very high," said Tena Prelec, a research associate at the London School of Economics, LSEE, who has studied the impact of non-transparent foreign investment in South East Europe.

UAE investments dogged by controversy

Sharjah Light Festival in the Gulf emirate of Sharjah, United Arab Emirates, 2019. Photo: EPA-EFE/ALI HAIDER

The United Arab Emirates has been steadily increasing its presence in the Balkan region for a decade.

It is the largest foreign investor in Montenegro - in tourism, agriculture and medium-sized enterprises. In Serbia, the UAE's flag carrier, Etihad Airways, picked up a 49 per-cent stake in Air Serbia in 2013. Bosnia has also seen significant UAE investment, but in Croatia its presence was limited to around 14 million euros between 2007 and 2018.

But while governments are grateful for the Gulf largesse, in each of the countries the investments have been met with questions of legality, transparency and doubts over who ultimately stands to benefit.

On the up side, said Prelec, the UAE generally invests long-term, in contrast with most Western players.

"It fits within the wider philosophy of preparing the country for a post-oil future," Prelec told BIRN. "They are thinking 20, 30, 50 years ahead."

UAE projects also come with "fewer strings attached" than those from the West, an...