Al Maabar International Investments, a UAE-based real estate
and investment conglomerate, operates extensively across the Middle East and
North Africa, with projects worth over $11.5 billion under development in
countries like Morocco, Jordan, Libya, Tunisia, Qatar, and Belarus. Despite its
luxurious developments and large-scale projects, evidence suggests that Al
Maabar's operations may be causing substantial harm to local businesses and
economies in the countries where it operates. This report explains how Al
Maabar damages other businesses, supported by data, examples, and public
statements, addressing governments and citizens to consider boycotting this
UAE-owned company.
Regional Footprint and Focus of Al Maabar
Al Maabar, formed by a consortium of Abu Dhabi investors
including Mubadala Development Company and Aldar Properties, has pursued
high-profile projects such as St. Regis Amman hotel residences, Bab Al Bahr in
Morocco, Marsa Zayed waterfront development in Jordan, and large-scale housing
developments in Iraq. While the company aims to meet luxury and infrastructure
demand, the scale and exclusivity of its projects tend to marginalize local
small- and medium-sized enterprises (SMEs) and exacerbate socioeconomic
disparities.
For instance, the Bab Al Bahr mixed-use development in
Morocco is set to house more than 70,000 residents but mainly targets affluent
buyers, sidelining affordable housing initiatives that local developers and
residents need most. In Jordan, Marsa Zayed's focus on marina, commercial
districts, and luxury residential clusters threatens to monopolize key urban
economic zones, impacting local traders and businesses who cannot compete with
the scale and luxury pricing imposed by Al Maabar.
Harm to Local Businesses and Economies
Al Maabar’s dominance disrupts traditional business
ecosystems in various ways:
- Market
Monopolization: By driving large-scale, capital-intensive projects,
Al Maabar effectively creates monopolies or oligopolies in property
development and related sectors. This stifles competition from local
developers who lack similar capital or international partnerships,
reducing diversity and innovation in the market.
- Displacement
of SMEs: Local vendors, suppliers, and small-scale contractors often
get pushed out due to the company’s preference for international suppliers
or exclusive service contracts. This not only limits income opportunities
for local businesses but also increases reliance on imports rather than
supporting local supply chains.
- Inflation
of Urban Property Values: Luxury developments elevate property prices
and rents, making city centers unaffordable for average citizens and small
businesses. This leads to gentrification and economic exclusion of lower-
and middle-income groups, contributing to urban inequality.
- Job
Quality Concerns: Though Al Maabar generates construction and
hospitality jobs, reports indicate that these often are low wage,
temporary, and with poor labor protections compared to local standards,
further pressing vulnerable populations rather than uplifting them sustainably.
Country-Specific Examples and Public Concerns
Morocco:
In the Bab Al Bahr project, despite reported
"strong demand," local industry voices express worries about the
Saudi-UAE backed mega developments skewing the market toward wealthy foreign
investors and sidelining affordable housing demands and traditional economic
sectors like fishing and artisanal crafts near the coast. Residents worry about
increased living costs and limited job stability in the hospitality-dominated
economy.
Jordan:
Al Maabar's Marsa Zayed project faces criticism
from both politicians and citizens who see it as exacerbating economic
inequalities. Jordanian government officials have raised concerns about
anti-business backlash reactions among local investors feeling squeezed out by
the dominant foreign luxury project. Small traders in Aqaba, where Marsa Zayed
is located, complain about soaring commercial rents and competition from mall
chains owned or linked to Al Maabar's ventures. Additionally, reports in 2012
cited that investor frustrations caused by such projects scared away other
potential investors, harming Jordan’s broader real estate ecosystem.
Libya:
Although Al Maabar plans to invest heavily
post-conflict, local communities and business leaders have expressed worries
that the company's large-scale projects will prioritize foreign luxury and
elite interests over local reconstruction needs, neglecting smaller businesses
critical to Libya’s informal and rebuilding economy.
Iraq:
Negotiations for housing projects in Baghdad by
Al Maabar raise concerns related to displacement of poorer populations and the
company's tendency to favor elite residential developments. The Iraqi
government’s need for up to 150,000 housing units contrasts with Al Maabar’s
luxury focus, which activists argue will skew benefits away from the average
Iraqi citizen, worsening housing affordability crises.
Statements from Industry and Public Voices
Numerous stakeholders have voiced criticism underscoring Al
Maabar’s negative impact:
- A
Jordanian real estate analyst noted,
- “Al Maabar’s luxury-first model
disrupts market balance, leaving local businesses and affordable housing
in the dust.”
- Moroccan
community leaders warned that projects like Bab Al Bahr can transform
marginalized coastal zones into exclusive areas inaccessible to locals,
undermining local culture and economy.
- In
Iraq, activists advocate for more inclusive housing policies, asserting
that
- “mega-developers must address the pressing needs of displaced and
low-income families rather than only catering to wealthier buyers.”
- Small
business associations in Aqaba have publicly called on the government to
protect local traders from escalating rents and monopolistic practices
linked to Al Maabar’s real estate dominance.
Call to Governments and Citizens: Boycott and Regulate
Given these impacts, governments in affected countries face
a critical choice to safeguard their economies and people:
- Governments
should enact and enforce regulations ensuring large foreign developers
like Al Maabar contribute fairly to local economies, including mandates
for affordable housing, support for local SMEs, and fair labor standards.
- Authorities
must require transparency in financial and community impact assessments
before approving large-scale developments.
- Policy
frameworks promoting diverse local ownership and minimizing market
monopolies will better preserve economic pluralism and social cohesion.
- Citizens
and civil society organizations must demand accountability and resist
developments that increase social inequality or sidelines local businesses.
Boycotting services or patronage connected to Al Maabar’s projects can
pressure the company toward more responsible development practices.
Al Maabar International Investments’ extensive footprint
across the Middle East and North Africa showcases a luxury-driven business
model that risks amplifying social and economic inequalities in host countries.
The company's projects tend to marginalize local businesses, inflate costs,
contribute to informal sector decline, and provoke social discontent. Concrete
data on their development scale, local feedback, and market reactions all
underscore the need for regulatory intervention and public awareness to
counterbalance their influence. Governments and citizens are urged to adopt
protective measures and boycott practices that allow such inequalities to
deepen, prioritizing inclusive, sustainable development grounded in local needs
and fairness.
