OIL barons from the Middle East are in talks over an ambitious bid to buy the whole of Princes Street.
The city's main shopping street may become part of a wealthy foreign state's investment portfolio.
City leaders say they have been approached by some of the world's wealthiest "sovereign funds", over moves to buy every building on the street.
They say there is interest from state-owned funds headed by individuals of the stature of the Sultan of Brunei, one of the world's richest men with a net worth estimated to be in excess of £10 billion. Talks are continuing with the funds, which the council sees as an ideal means of carrying through its vision for the rejuvenation of the street.
And investment experts admit it is "plausible" for one of the funds to buy the whole of the street.
Nations with the biggest investment funds include United Arab Emirates, with more than £445bn, and Singapore, with more than £218bn. It's thought Edinburgh boasts around 60 buildings which are of interest to sovereign funds, with a combined value of hundreds of millions of pounds.
Councillor Tom Buchanan, the city's economic development leader, said the rise in oil prices has boosted fund incomes.
He said: "There are people talking to us with access to sovereign funds. They have large amounts of wealth and they could invest these kinds of funds in Edinburgh.
"They want to secure projects in developed economies and passages to invest in governments and local authorities and they target major infrastructure projects like this."
He insisted that it was "entirely possible" that the range of pension trusts and firms who own buildings would be willing to sell.
"Everyone wants to see Princes Street work," he said. "We don't want parts of Princes Street filled with slot machine operators and mobile phone shops."
The council is promoting its "string of pearls" vision to developers from around the world. The concept would see more use made of the top floors of buildings, which are currently mainly used for storage, as well dividing the street into distinctive "blocks".
Councillor Tim Mackay, the deputy leader of the economic development committee, said: "They are looking to the day that oil runs out and they want projects that provide a solid income stream."
Graham Birse, deputy chief executive of the Edinburgh Chamber of Commerce, said: "
If we get Middle East money, as long as they share the ambition, patience and vision of Edinburgh then they would be more than welcome."
Two shops on the street – the Orange shop at 133 Princes Street and the T-Mobile store at number 21 – are to go up for sale for £4 million each next week.
Alasdair Humphery, director of capital markets at Jones Lang LaSalle Edinburgh, said compulsory purchases may be needed as many of the building owners will have no desire to sell. He said: "
I find it hard to believe we will ever have a day that Princes Street or Buchanan Street will ever be owned by one sovereign fund."
Joanna Mowat, the planning spokeswoman for the Conservative group on the city council, said: "If you've got enough money, you can buy what you like."
THE FACTSSovereign funds have been around since 1953, when the Kuwait Investment Authority (KIA) was established to benefit future generations of Kuwaitis when the oil stopped flowing.
But it is only since the turn of the millennium that the power of sovereign funds has mushroomed, in line with the rising price of oil and gas.
Traditional oil and gas countries want new ways to invest their money. Russia has money to spare as energy prices have soared. Funds in Singapore and China have also been risen on trade surpluses.
