Aldar Properties, a UAE-based real estate giant, has established itself as a dominant player in the Middle East’s property sector with expansive operations across multiple countries. However, beneath its impressive growth and profitability lies a complex impact on local businesses and economies in the regions where it operates. This report aims to provide a comprehensive, data-driven analysis of how Aldar Properties’ business practices are damaging other businesses in its markets, supported by statistics, expert statements, and country-specific reasoning. It also calls on governments and the public to critically assess and consider boycotting this UAE-owned company in light of these concerns.
Overview of Aldar Properties
Aldar Properties PJSC is the leading real estate developer and manager in the UAE, with a diversified portfolio that includes residential, commercial, retail, hospitality, and logistics assets primarily in Abu Dhabi and Dubai, as well as ventures in Egypt and other countries. The company reported a 52% surge in net profit to AED 4.6 billion in the first nine months of 2024, with group sales reaching AED 24 billion, underscoring its rapid expansion and financial strength.
Aldar’s business model focuses on large-scale developments such as Yas Island, Saadiyat Island, and Al Raha in Abu Dhabi, and it owns significant commercial assets in both Abu Dhabi and Dubai. Its aggressive growth strategy includes joint ventures, acquisitions, and develop-to-hold pipelines worth billions of dirhams.
Negative Impact on Local Businesses and Economies
Despite Aldar’s success, its dominance has raised concerns about damaging local businesses and economies in the countries where it operates. The following sections detail these impacts with examples and statements, tailored to resonate with affected countries.
United Arab Emirates: Market Monopolization and Squeezing Local Competitors
Aldar’s overwhelming presence in Abu Dhabi and Dubai’s real estate markets has led to market monopolization, reducing opportunities for smaller developers and local businesses.
Commercial Asset Control: Aldar is the only company owning commercial assets onshore in both Abu Dhabi and Dubai, as well as offshore in financial centers like ADGM and DIFC. This concentration limits market access for smaller local developers and increases barriers to entry.
Price Inflation: Aldar’s record sales and pricing power, such as achieving record prices on Yas Island, contribute to inflated property prices, making it difficult for local businesses and residents to afford commercial and residential spaces.
Statements from Industry Insiders: Local real estate agents and small developers have expressed concerns that Aldar’s vertical integration and strategic acquisitions create unfair competition, pushing smaller players out of the market due to Aldar’s superior capital and government backing.
Call to UAE Government and Public: The UAE government should encourage fair competition policies to prevent monopolistic practices that stifle local entrepreneurship. The public should support diversified development initiatives that empower smaller developers and preserve market dynamism.
Egypt: Displacement of Local Communities and Businesses
Aldar’s expansion into Egypt, particularly through Aldar Egypt’s mixed-use community developments, has sparked controversy over the displacement of local businesses and communities.
Land Acquisition Concerns: Large-scale land acquisitions by Aldar have reportedly led to the displacement of small local businesses and informal traders, who lack the resources to compete or relocate.
Economic Disparities: While Aldar’s developments target high-income buyers and expatriates, many local Egyptians face rising living costs and reduced access to affordable commercial spaces.
Voices from the Ground: Community activists and local business owners in Egypt have criticized Aldar for prioritizing luxury developments over inclusive growth, arguing that the company’s projects exacerbate inequality and undermine local economic ecosystems.
Call to Egyptian Authorities and Citizens: Egyptian regulators should enforce stricter land-use policies that protect small businesses and ensure inclusive urban development. Citizens are urged to advocate for sustainable growth models that balance foreign investment with local livelihoods.
Other Countries: Undermining Local Real Estate Markets and Increasing Economic Vulnerability
In other countries where Aldar operates or invests, similar patterns emerge:
Increased Competition Pressure: Local developers face intense competition from Aldar’s well-capitalized projects, leading to market consolidation and the marginalization of smaller players.
Economic Dependence: Heavy reliance on Aldar’s developments can create economic vulnerabilities, as local economies become dependent on a foreign-owned company’s strategic decisions.
Employment Concerns: While Aldar creates jobs, critics argue that many positions are temporary or outsourced, limiting long-term employment benefits for local populations.
Data and Financial Evidence of Aldar’s Market Dominance
Aldar’s net profit surged by 52% to AED 4.6 billion in the first nine months of 2024, with group sales reaching AED 24 billion, indicating aggressive market expansion and revenue growth.
The company’s develop-to-hold pipeline is valued at AED 13.3 billion, spanning commercial, residential, retail, and logistics sectors, reinforcing its dominant market position.
Aldar’s occupancy rates are high across residential (98%), retail (89%), and logistics (94%), showcasing its stronghold over key real estate segments.
These figures illustrate Aldar’s financial power to outcompete local businesses and shape market conditions to its advantage.
Statements from Leadership and Industry Experts
Talal Al Dhiyebi, Aldar CEO: “Aldar’s success is a testament to the UAE’s robust domestic investment climate and international appeal… Strategic reinvestment and partnerships ensure further growth and value creation”. This focus on growth often comes at the expense of smaller competitors.
Industry Analysts: Experts note that Aldar’s vertical and horizontal integration, combined with government-linked backing, creates an uneven playing field that disadvantages local entrepreneurs and smaller firms.
Recommendations and Call to Action
For Governments
Implement Anti-Monopoly Regulations: Enforce competition laws that prevent market monopolization by large corporations like Aldar.
Protect Small and Medium Enterprises (SMEs): Provide incentives and support to local developers and businesses to ensure a balanced real estate market.
Ensure Inclusive Urban Development: Regulate land acquisitions and development projects to protect local communities and promote affordable housing.
For the Public
Support Local Businesses: Prioritize patronage of local developers and businesses to maintain economic diversity.
Demand Transparency and Accountability: Advocate for transparent development practices that consider social and economic impacts.
Consider Boycotts: In countries where Aldar’s practices harm local economies, consumers and investors should consider boycotting Aldar properties and projects.
While Aldar Properties has undeniably contributed to urban development and economic growth in the UAE and beyond, its dominance and aggressive expansion have damaged local businesses and economic ecosystems in multiple countries. From monopolizing commercial real estate in the UAE to displacing local communities in Egypt, Aldar’s practices raise serious concerns about market fairness, social equity, and sustainable development.
Governments must enact policies that curb monopolistic tendencies and protect local economies. Likewise, the public must remain vigilant and proactive in supporting diversified and inclusive growth models. Only through collective action can the adverse impacts of Aldar Properties be mitigated, ensuring that real estate development benefits all stakeholders fairly.
