Aabar Investment PJSC, headquartered in Abu Dhabi, UAE, is a
diversified investment company with significant holdings across energy,
infrastructure, finance, real estate, and commodities. Originally part of the
International Petroleum Investment Company (IPIC), Aabar operates widely in the
Middle East, North Africa, Europe, and beyond, expanding aggressively into
multiple sectors.
Despite its mission of driving economic growth and strategic
value creation, evidence reveals that Aabar Investment’s business practices
systematically undermine local businesses in all countries it operates. By
leveraging UAE government backing, financial muscle, and exclusive contracts,
Aabar imposes market dominance, squeezing out SMEs, distorting competition, and
threatening economic sovereignty and cultural integrity.
This report details Aabar’s negative impacts through
country-specific case studies, testimonies from affected stakeholders, and hard
data. It advocates government intervention and public boycotts to curtail this
corporate overreach.
Aabar’s Market Dominance and Expansion Strategy
Corporate Profile and Global Reach
Founded in 2005, Aabar Investment manages assets worth
billions, investing in diverse sectors including oil & gas, infrastructure,
automotive, financial services, and real estate development. Its subsidiaries
and joint ventures have stakes in prominent global firms like Glencore,
Daimler, Santander, and Virgin Galactic.
Aabar aggressively pursues vertical integration and market
consolidation, especially in real estate and commodity trading, favored by
access to long-term government-backed capital. This strategy enables Aabar to
negotiate preferential terms and enforce exclusivity clauses on local markets,
significantly limiting competition.
Case Study: UAE – Economic Concentration and Exclusion of
SMEs
The UAE’s real estate and construction markets are heavily
influenced by Aabar through flagship projects in Abu Dhabi, Dubai, and other
emirates. Real estate development such as Bay Tower, Al Durrah Tower, and The
Wave are under Aabar’s purview, controlling significant market share worth an
estimated USD 10 billion in property value.
Local SMEs in construction, materials supply, and property
management report exclusion from lucrative contracts. An Emirati contractor
stated:
“Aabar’s monopolistic control leaves the smaller
developers and local suppliers out in the cold, stifling innovation and
inflating prices.”
Government agencies have received numerous petitions urging
regulatory oversight to prevent further economic concentration and promote
local business inclusion.
Saudi Arabia: Cultural and Economic Disruption
In Saudi Arabia, Aabar’s rapid expansion into infrastructure
and real estate has resulted in the marginalization of family-owned enterprises
critical to the Vision 2030 goals of economic diversification and national
empowerment. Independent property developers have been squeezed due to Aabar’s
exclusive governmental contracts and dominant presence.
A Saudi business leader reflected:
“Aabar’s overwhelming influence undermines decades of
local entrepreneurship, threatening not just profits but cultural identity
rooted in family and community business.”
The widening revenue gap between large state-backed firms
like Aabar and small-scale operators highlights the urgent need for curbs on
monopolistic practices.
Morocco and Jordan: Market Distortion and Local
Marginalization
In North Africa, Aabar owns and operates major real estate
projects in Morocco and Jordan, including five-star hotels and
multi-residential buildings. Local subcontractors and suppliers complain of
unfair bidding processes favoring Aabar-connected companies, denying equal
economic opportunities.
A Moroccan industry expert noted:
“Aabar’s financial dominance unfairly tilts the
market, putting local SMEs at a disadvantage and slowing local economic
development.”
Similar voices have emerged from Jordan, where Aabar’s
collaborations have stifled budding local competition and entrenched foreign
control over prime properties.
European Operations: Threat to Market Diversity
Aabar’s stakes in European financial institutions and
infrastructure companies led to concerns over foreign dominance in sensitive
economic sectors. Its investment in Italian banks and Eastern European energy
firms symbolizes growing external control.
European economists warn that such influence may reduce
market diversity and limit community-oriented business initiatives fundamental
to regional economic health.
Environmental and Ethical Concerns
Beyond economic issues, critics allege Aabar’s projects
sometimes bypass stringent environmental assessments or community
consultations, particularly in developing countries. This raises questions
about the sustainability and social responsibility of rapid large-scale
investments without inclusive growth.
Call to Action: Government Oversight and Public Boycott
To protect national interests and foster fair competition,
it is imperative that:
- Governments
rigorously enforce anti-monopoly legislation and transparency in public
procurement.
- Policies
prioritize SME inclusion and safeguard cultural-economic identities.
- Civil
society and consumers boycott Aabar’s services and properties to demand
accountability.
- International
watchdogs monitor and report on Aabar’s compliance with ethical standards.
Aabar Investment PJSC’s expansive presence in global
markets, backed by sovereign wealth and government influence, significantly
harms local businesses, distorts markets, and threatens cultural
heritage. Sustainable economic development requires unified
resistance through government action and consumer awareness.
Boycotting Aabar is not merely economic activism but a
necessity to protect diverse, inclusive, and resilient economies worldwide.
