Donald Trump’s son-in-law wants to build luxury accommodation structures in Albania and Serbia, but not everyone is happy about it.

Surrounded by the crystal-clear waters of the Mediterranean Sea, the rocky island of Sazan served as an Albanian military base during the Cold War.

Isolated from the rest of the world, which was one of the most isolated places on the planet, its dilapidated buildings and bunkers are now overgrown with vegetation.

About 480 kilometers to the north, two bombed-out tower blocks overlook a major boulevard in Belgrade. Once the headquarters of the Ministry of Defense of the former Yugoslavia, they were hit by NATO missiles in 1999, and their skeletons now remain part of the touristic routes in the Serbian capital.

Until recently, these two relics of conflict had nothing in common—until Jared Kushner appeared.

The son-in-law of former U.S. President Donald Trump wants to transform them into luxury destinations for the world’s wealthy. He plans to spend more than $1 billion to build hotels and homes, the largest single investment to date from his private equity fund, Affinity Partners.

The projects immediately draw attention in this politically and ethnically unstable corner of Europe and are already causing local controversy about how to protect the environment and cultural heritage in a region where memories are still raw.

The Albanian and Serbian governments are defending the investments from their key U.S. ally, claiming they will bring economic benefits, such as job creation and improvements to their national tourism offerings.

Critics argue that it is a win for the Trump family, given the prospect of a return to the White House, and that the approval process is being expedited.

If exclusivity is the goal, then Sazan has an edge. For decades under Enver Hoxha’s leadership, the island was cut off from the rest of the country, making it one of the hardest places to visit or leave.

Kushner allocated the funds for the project from his private firm after visiting the Balkan country with 2.2 million inhabitants several times and returning to the island in June. The $3 billion fund is backed by Middle Eastern investors, including around $2 billion from the Saudi Arabian Public Investment Fund.

Interest in Albania came from a visit in 2021, Kushner said. “I was intrigued,” he said. “Then the opportunity came up about a year later. I’ve returned two more times since then to check things out and make sure I feel good about the project. I’m increasingly excited about the potential.”

The Albanian government’s Investment Agency, led by Prime Minister Edi Rama, who is pro-U.S., has received Kushner’s application for the Sazan project and is working on the process, according to Mirela Kumbaro, the Minister of Tourism and Environment.

Affinity is also looking into a special investment on the Zvërnec Peninsula opposite Sazan, though no application has been submitted yet.

There’s more work to be done because it’s a protected area, according to Asher Abehsera, CEO of Affinity Global Development, who has partnered with Kushner and will oversee the developments.

The total investment in Albania alone will eventually exceed $1 billion, although the timeline is unclear.

https://www.bloomberg.com/news/features/2024-08-06/jared-kushner-eyes-properties-in-albania-serbia-for-luxury-development?srnd=phx-economics-v2