Elite

Hungary’s corporate landscape is undergoing its most significant transformation in decades as businesses that flourished under former Prime Minister Viktor Orban adjust to a new political order led by Prime Minister Péter Magyar. Companies that once benefited from close ties to the previous government are now restructuring their operations, while investors and foreign firms are watching for signs of a more competitive business environment.

The shift follows Magyar’s decisive election victory in April, ending Orban’s 16 year rule and ushering in an administration that has pledged to curb political favoritism, increase transparency in public procurement, and align Hungary more closely with European Union governance standards.

Construction Giants Shift Strategy

One of the clearest signs of the changing business climate comes from Market Építő, one of Hungary’s largest construction firms, which has historically secured major government backed infrastructure projects, including football stadiums.

Chief Executive Sandor Scheer said the company is preparing for a future less dependent on large public contracts.

“We are preparing for a shift where, instead of large scale projects, we will have a higher volume of smaller scale projects, and housing and infrastructure construction will become dominant,” Scheer told Reuters.

The company, which has been linked to Orban ally Istvan Garancsi, generated roughly one quarter of its revenue from public contracts during the previous administration.

End of the Crony Capitalism Model?

For years, Orban’s political allies built powerful business empires through access to state spending, public tenders, and favorable regulations across sectors including construction, banking, telecommunications, and real estate.

Analysts believe companies that relied heavily on government infrastructure spending now face the greatest risks.

Daniel Hegedus, Deputy Director of Berlin’s Institute for European Politics, said construction and road building companies closely tied to Orban’s political network could struggle to survive as contracts become more competitive.

Some firms, analysts warn, may disappear entirely if they fail to adapt to a marketplace where political connections carry less influence.

Government Pushes Transparency Reforms

Prime Minister Magyar has moved quickly to introduce anti corruption legislation designed to satisfy long standing European Union concerns over Hungary’s procurement system.

A 2024 OECD survey found Hungary had an unusually high number of single bidder public procurement contracts, while research by Hungarian anti corruption think tank CRCB concluded there was clear evidence of political favoritism in state tenders during the Orban era.

The reforms are also intended to unlock billions of euros in suspended European Union funding that has been tied to improvements in governance and transparency.

Markets React to Political Transition

Investors have already responded to the changing political landscape.

Several companies widely viewed as benefiting from their proximity to the previous government have experienced significant share price declines since Magyar’s election.

Among those affected are construction and energy group Opus Global, real estate developer Appeninn, telecommunications company 4iG, and MBH Bank.

The declines contrast with a broader rally in Hungary’s stock market, reflecting optimism that a more transparent business environment could attract greater international investment.

Companies Defend Their Business Models

Despite the uncertainty, businesses linked to the previous administration reject suggestions that their success depended solely on political connections.

Market Építő says its financial strength and diversified operations provide long term stability regardless of political change.

Road construction giant Duna Aszfalt, whose owner became one of Hungary’s wealthiest businessmen during Orban’s tenure, also expressed confidence in its future.

The company stated that it had successfully competed against international firms even before Hungary’s democratic transition in 1990 and remained prepared for a more competitive marketplace.

Meanwhile, telecommunications firm 4iG denied benefiting from political favoritism, while MBH Bank said its procurement practices fully complied with both Hungarian and European Union regulations.

Review of Previous Government Contracts

The Magyar administration has also begun reviewing spending commitments approved under the previous government.

One early decision was to suspend an extension of a southern Hungarian highway and request that Duna Aszfalt repay funds received before the election for the project.

The move signals a broader willingness to scrutinize public contracts awarded during Orban’s administration and reassess government spending priorities.

Foreign Investors Could Benefit

Political analysts believe the reforms could reshape Hungary’s investment climate by creating more opportunities for international firms that previously struggled to compete with politically connected domestic companies.

Greater transparency in public procurement, combined with stronger oversight, may improve investor confidence and encourage new foreign investment into sectors previously dominated by companies with close government ties.

However, the transition is also expected to produce significant disruption as businesses adapt to a competitive environment driven more by market forces than political relationships.

What Comes Next

Hungary is entering a new phase in which political change is reshaping corporate power as much as government itself. Companies built around privileged access to state contracts now face growing pressure to compete in a more transparent marketplace, while new reforms seek to restore confidence among investors and European partners.

Whether these changes produce lasting economic modernization or simply redistribute political influence will depend on the implementation of Magyar’s reform agenda. For Hungary’s business elite, however, the era of relying on political proximity for commercial success appears to be drawing to a close.

With information from Reuters.

Saudi Arabia has hosted the last two Asian Champions League Elite finals and has now been confirmed for the next three.

Saudi ‌Arabia will organise the next three ⁠editions ⁠of the Asian Champions League Elite finals after the Asian Football Confederation’s ⁠executive committee confirmed the country’s provisional hosting rights had been made permanent.

The Saudis have hosted the first two editions of the event, which sees the quarterfinals, semifinals and final played in ‌a centralised venue, since the continent’s premier club competition was restructured before the 2024/2025 season.

Jeddah-based outfit Al-Ahli have won the title on the two occasions the city has hosted the ⁠finals, defeating Japan’s Kawasaki ⁠Frontale in 2025 before beating Machida Zelvia, also from Japan, in May.

The upcoming edition of the tournament, which ⁠features the domestic champions of the leading competitions from ⁠the region, will ⁠see the league phase expanded from 24 to 32 teams.

The qualifying rounds will start on August 11, ‌with the draw for the league phase to be held in Kuala Lumpur ‌on ‌August 18 and play commencing on September 14.

Saudi Pro League side Al-Ahli completed their back-to-back victories with a 1-0 win after extra time against Machida Zelvia, of the Japanese J1 League, in last year’s final.

Fellow Saudi Pro League side Al-Hilal are the record winners of the competition with four wins from nine appearances in the final – which is also a record.

Japan’s Urawa Red Diamonds and South Korea’s Pohang Steelers have each lifted the trophy twice, having both appeared in the final on three occasions.

When asked if Spain would win the World Cup, Lamine Yamal simply smiled and said “yes”.

His words to American broadcaster CBS in the build-up would have come as a surprise to no-one who has seen the confident teenager become one of the best players on the planet.

For many though, for his prediction to come true, Lamine Yamal was going to have to set the tournament alight in his first ever World Cup.

So far, that has just not happened.

The 19-year-old has scored one goal and has not made an assist, but his country have cruised into the final anyway and will face Argentina on Sunday.

While the likes of fellow superstars Lionel Messi, Kylian Mbappe, Harry Kane, Jude Bellingham and Erling Haaland have had starring roles, Lamine Yamal’s World Cup has been surprisingly understated.

But could this be his moment?

Lamine Yamal’s stats for Spain are incredible. He has yet to lose for his country in the 27 competitive matches he has played. He has started 12 games at major tournaments for Spain and won all of them, the longest 100%-win rate of any European player across major tournaments when starting.

If he scores in New York on Sunday he will become just the third teenager to find the net in a World Cup final, after Pele in 1950 and Mbappe in 2018.

Win the tournament and he becomes just the fourth teenager to ever start a World Cup final and win the trophy, after Pele, Mbappe and Italy’s Giuseppe Bergomi in 1982. Nineteen-year-old team-mate Pau Cubarsi could become the fifth.

“No-one will care whether Lamine has scored lots of goals and created lots of goals,” said one Spain fan. “If he wins the World Cup with Spain, he will be a legend forever.

“If we lose to Argentina, no-one will remember his first World Cup. We know he will have lots of other World Cups and we believe he will become the greatest.

“But not many teenagers get the chance to win a World Cup. This is his chance. He will have regrets if we lose and he hasn’t been able to play his best.”