Companies from the UAE are expected to start building a new river port in Serbia next year, after a memorandum on development projects for river ports was signed by the Serbian government and head of Dubai Port World on May 23, the government reported.

Serbia has become the main target for UAE-based investors in Southeast Europe, as President Aleksandar Vucic’s friendship with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan has brought billions of euros worth of investment and loans to the country.

The memorandum was signed by Serbia’s Deputy Prime Minister and Minister of Construction, Transport and Infrastructure Zorana Mihajlovic and president of Dubai Port World, Sultan Ahmed Bin Sulai. 

According to Mihajlovic, companies from the UAE could start building a new port in Serbia next year. A feasibility study will show whether their investment will be in Novi Sad, Smederevo or Belgrade. 

She also announced that after 40 years the state will begin to invest in the construction of river ports, and that the planned investments are worth more than €200mn, reads the government’s statement.

Currently the largest joint Serbian and UAE project is Belgrade Waterfront, also the largest real estate development in Serbia. Construction of the €3.2bn Belgrade Waterfront development was launched in 2016 by Serbia’s government and the UAE’s Eagle Hills. Eagle Hills owns 68% of the joint venture, Belgrade Waterfront Capital Investment company. The project is steadily progressing. 

The Belgrade Waterfront project is designed to transform the image of the Serbian capital, and is expected to boost the country’s economy, engage the construction industry and create new jobs. However, the project has caused numerous disputes between the government and Belgrade’s citizens, who have objected to the clandestine destruction of buildings in the area to make way for the development.