The investor will be able to sell the developments with a favorable 5% VAT rate.

Just before the Easter break, the government submitted a bill to the National Assembly outlining the framework for the Rákosrendező investment, already being dubbed as 'Mini-Dubai'. The proposal, titled "Agreement on Economic Cooperation between the Government of Hungary and the Government of the United Arab Emirates", is presented by Péter Szijjártó, Minister of Foreign Affairs and Trade, with János Lázár, the Minister of Construction, overseeing the project.

The bill reveals that the Rákosrendező area will be sold to the investor, transforming it from public to private ownership, and generating substantial revenue for the state a boost for the budget.

A pivotal commitment of the project is the exemption from public procurement requirements. The project is to be classified as of key national economic importance, which greatly limits the applicability of construction and other regulatory requirements.

"The relevant Hungarian laws allow, to the extent and under conditions permitted, the contracts, programs, and agreements related to the Project will not be subject to procurement, tendering, competitive bidding, or any other procedure specified in the national laws of Hungary or the United Arab Emirates at the time of the Agreement's ratification," the draft states.

Furthermore, the government promises to enable the future developments to benefit from a reduced 5% VAT rate, if possible.

David Vitézy, a candidate for mayor, criticized the proposal following its submission. His main concerns include:

- The government is handing over a 130-hectare area to an Arab investor without competition, without setting any requirements or expectations, notably not specifying what will be built. Budapest needs new affordable residential areas and significant urban parks, not luxury shopping centers or residential neighborhoods.

- The investment is exempted from all existing construction regulations, leaving the district and municipal governments with no say over the height of buildings or their function and size.

- There are no guarantees for necessary transportation projects, including the extension of tram line 3, renovation and replacement of vehicles for the M1 metro line, and comprehensive development of the busy railway line passing through the area.

- Plans to direct the airport railway to Rákosrendező instead of the city center cater to the interests of the Arab investors over those of tourists and residents of Budapest, lacking sense from a transportation policy and urban development perspective.

- Previous plans for the Rákosrendező brownfield development, including the establishment of a new, city-significant park of at least 25 hectares to serve Zugló, Rákospalota, and Angyalföld, are ignored. The contract allows for this area to be developed, with plans for green space limited to covering railway tracks an impractical and costly proposal that does not promise genuine green space.

This controversial 'Mini-Dubai' law represents a significant shift towards private development and investment in Hungary, stoking debate on urban planning and public benefit.