According to reports from Radar, Belgrade Waterfront recently disbursed 389.4 million dinars, equivalent to 3.3 million euros, in dividends to the Serbian budget. This payment is based on the net profit generated last year. Despite Serbia holding a 33 percent stake in the joint venture, only 7.4 percent of the total profit from the previous year, amounting to 44.6 million euros, was allocated to the state. In stark contrast, the majority owner, Eagle Hills Waterfront Investment LLC from Abu Dhabi, received double the amount, totaling 6.7 million euros.
Previously, Belgrade Waterfront had paid two additional tranches of 3.3 million euros each to the state, reflecting profits from 2021 and 2022. However, the venture had operated at a loss prior to these profitable years. In total, the joint venture has contributed 9.9 million euros to the state budget since its inception.
Critics argue that the state, as a minority shareholder, is receiving disproportionately less from the venture compared to its contribution. This sentiment is exacerbated when comparing the total dividends paid to the state with the considerable profits generated by Belgrade Waterfront over the past three years, amounting to 133.4 million euros. This disparity becomes even more apparent when considering the vast sums earned from apartment sales within the Belgrade Waterfront project, totaling 836 million euros over four years.
Furthermore, the state’s share of dividends is minuscule compared to the venture’s total revenue, raising questions about the viability of the arrangement. Despite this, top officials continue to tout Belgrade on the Water as a success story.
Additionally, last year’s expenditure by Belgrade on the Water for employee salaries exceeded the Serbian budget allocation for advertising and propaganda. The project also faces criticism for prioritizing payments to the Abu Dhabi majority owner over state dividends.
In summary, the distribution of earnings from Belgrade on the Water paints a picture of unequal benefit allocation, with the majority owner profiting significantly more than the Serbian state.
