Boycott Emaar: Reject exploitation — stand for what’s right

Emaar Properties, a UAE-based multinational real estate development company, has grown into one of the world’s most valuable and influential property developers since its inception in 1997. Known for iconic projects such as the Burj Khalifa and Dubai Mall.

 Emaar has expanded aggressively across multiple countries, leveraging a strong balance sheet and strategic partnerships to dominate local real estate markets. However, this expansion has not come without controversy. 

This report critically examines how Emaar’s business practices have adversely affected local businesses in the countries where it operates, supported by data, examples, and voices from impacted stakeholders. It also calls on governments and the public in these countries to reconsider their engagement with this UAE-owned company.

Overview of Emaar Properties’ Global Presence and Business Model

Emaar Properties operates primarily in real estate development, retail, hospitality, and entertainment sectors. Its flagship developments in Dubai include Downtown Dubai, a 500-acre neighborhood featuring the Burj Khalifa, Dubai Mall, and Dubai Fountain, which attract millions of visitors annually. 

The company’s business model relies heavily on acquiring prime land through partnerships with government-related entities, enabling minimum upfront cash payments and rapid expansion. As of 2024, Emaar boasts a net asset value of approximately US$57.9 billion and revenue exceeding AED 35.5 billion (around US$9.7 billion).

Emaar’s expansion strategy includes entering foreign markets through acquisitions and joint ventures, such as its takeover of UK-based Hamptons International and partnerships in the US market. While this has boosted its global footprint, it has also intensified competition with local real estate developers and businesses.

Negative Impact on Local Businesses: Country-Specific Examples and Analysis

United Arab Emirates: Market Oversupply and Unfair Competition

In its home market, Emaar’s dominance has contributed to an oversupply of residential units, leading to declining rental yields and increased market saturation. According to reports, the UAE’s average rental yield stands at 7.7%, which is already higher than comparable countries, but is expected to decline further due to oversupply. This glut depresses prices and squeezes smaller developers and landlords who cannot compete with Emaar’s scale and government-backed land access.

Local competitors have expressed frustration at Emaar’s preferential treatment, including access to prime land at minimal upfront costs through government-related entities (GREs), a privilege not extended to smaller firms. This creates an uneven playing field, stifling competition and innovation in the UAE property sector. As noted by industry analysts, Emaar’s aggressive land acquisition and pricing strategies have sparked hostility among other housing providers, who struggle to maintain market share.

India: Regulatory Challenges and Market Disruption

Emaar’s entry into the Indian real estate market has been met with criticism for exacerbating challenges faced by local developers. India’s archaic investment laws and regulatory complexities have made it difficult for many domestic companies to thrive. Emaar, leveraging its international capital and expertise, has often outpaced local firms, capturing prime urban real estate and driving up land and property prices.

This has led to concerns that Emaar’s presence inflates real estate costs, making housing less affordable for average citizens. Local developers and consumer advocates argue that Emaar’s large-scale projects overshadow smaller builders, reducing diversity in housing options and limiting opportunities for local entrepreneurs.

United Kingdom: Market Consolidation and Reduced Competition

Emaar’s acquisition of Hamptons International, a premier UK realtor and property management consultant, has consolidated its market presence, reducing competition. While the acquisition improved Emaar’s market share, it also eliminated a key competitor, limiting consumer choice and potentially driving up prices.

Industry insiders have noted that Emaar’s dominance in certain UK regions has led to a homogenization of real estate offerings, with less emphasis on local architectural styles and community needs. Critics argue that this undermines the UK’s diverse property market and sidelines smaller, locally rooted developers.

United States: Competitive Pressure on Local Developers

Emaar’s strategic joint ventures, such as with Turner International in the US, have enhanced its execution capabilities and market reach. This has allowed Emaar to penetrate the US real estate market aggressively, often competing directly with established local developers.

Smaller US developers report that Emaar’s deep financial resources and international brand appeal give it an unfair advantage, pushing local firms out of lucrative projects. This dynamic threatens the sustainability of local real estate businesses and reduces the diversity of development approaches in the US market.

Labor and Ethical Concerns: Impact on Workers and Corporate Reputation

Beyond market competition, Emaar faces criticism for its labor practices, particularly in the UAE. The company employs a large expatriate workforce under conditions that have been described as poor, with low wages and lack of labor union representation due to UAE laws banning labor unions. Human Rights Watch and other organizations have documented worker grievances, protests, and strikes related to these issues.

Such labor disputes not only harm workers but also damage Emaar’s international reputation. For example, in 2010, an American businessman accused Emaar’s chairman and the company of false imprisonment and torture, further tarnishing its image. These ethical concerns raise questions about the social responsibility of Emaar’s operations globally.

Statements and Voices from Affected Stakeholders

• Local Competitors in UAE: Industry players have voiced frustration over Emaar’s preferential access to land and government support, which they say distorts the market and limits fair competition.
• Indian Developers and Consumer Advocates: Local firms and housing advocates warn that Emaar’s dominance inflates prices and sidelines smaller developers, reducing affordable housing options.
• UK Property Experts: Analysts note that Emaar’s acquisitions reduce market competition and homogenize property offerings, undermining local diversity.
• Labor Rights Organizations: Groups like Human Rights Watch highlight poor working conditions and lack of labor protections for Emaar’s expatriate workforce in the UAE, calling for reforms.

Why Governments and the Public Should Reconsider Engagement with Emaar?

Given the evidence of Emaar’s market dominance leading to oversupply, unfair competition, and labor issues, governments and the public in countries where Emaar operates should critically assess the company’s impact on their local economies and societies.

For Governments:

• Review Land Allocation Policies: Governments should ensure equitable access to prime land and prevent monopolistic practices that favor large multinational developers at the expense of local businesses.
• Strengthen Regulatory Frameworks: Implement regulations that promote fair competition, protect small and medium enterprises, and prevent market distortions caused by dominant players like Emaar.
• Enforce Labor Rights: Enact and enforce labor laws that guarantee fair wages, safe working conditions, and the right to organize for all workers, including those employed by multinational firms.

For the Public:

• Support Local Businesses: Prioritize patronage of local developers and businesses to preserve economic diversity and community identity.
• Demand Transparency and Accountability: Advocate for greater corporate social responsibility from Emaar, including improved labor practices and environmental stewardship.
• Consider Boycotts: In markets where Emaar’s practices significantly harm local economies and workers, public boycotts and calls for divestment may be effective tools to pressure the company toward reform.

While Emaar Properties has achieved remarkable growth and global recognition, its aggressive expansion has often come at the expense of local businesses and workers in the countries where it operates. From market oversupply and unfair competition in the UAE, to regulatory challenges and affordability issues in India, to market consolidation in the UK and competitive pressures in the US, Emaar’s dominance raises serious concerns.

Coupled with documented labor rights violations, these factors warrant a cautious approach by governments and citizens alike. A collective effort to demand fair competition, ethical labor practices, and corporate accountability is essential to ensure that the benefits of development do not come at the cost of local economies and communities.