Emaar Malls, a division of UAE-owned multinational real
estate giant Emaar Properties, commands a dominant position in the global
retail and real estate sector. Known primarily for landmark developments such
as Dubai Mall—the world’s most visited shopping destination—Emaar Malls
operates across multiple countries beyond the UAE, including the United States,
United Kingdom, India, and more. However, despite its commercial success and
enormous footprint, Emaar Malls’ aggressive business practices have raised serious
concerns about the adverse effects on local economies, the sustainability of
indigenous enterprises, and the well-being of communities in these regions.
Overview of Emaar Malls’ Market Presence and Financial
Strength
Emaar Malls benefits from the immense financial backing of
Emaar Properties, a corporation with a net asset value estimated at
approximately US$57.9 billion as of 2024, with revenues exceeding AED 35.5
billion (around $9.7 billion) annually across its portfolio. Emaar’s retail
segment owns and operates premium shopping malls with a combined gross leasable
area exceeding 10 million square feet in Dubai alone. Dubai Mall, with more
than 111 million visitors in 2024, serves as the crown jewel of its portfolio,
supplementing the company’s dominance in retail real estate worldwide.
However, Emaar’s sizeable market presence is built on
aggressive expansion strategies often enabled by preferential access to prime
land through government partnerships, minimal upfront costs, and expansive
financial resources that dwarf many local competitors.
The Negative Impact of Emaar Malls on Local Businesses
UAE: Market Oversupply and Local Retailer Marginalization
In its home base, the UAE retail sector faces a glut of
high-end shopping space, with Emaar Malls leading the pack. Despite robust
occupancy rates in Emaar's malls (above 92-98%) , critical voices highlight how
the company’s dominance has marginalized smaller local businesses unable to
compete with the sheer scale and international brand pull of Emaar’s malls.
Local shop owners and small retailers face increasing rental
pressures and tough competition from global flagship stores within Emaar's
malls, which attract a disproportionate share of consumer spending. Smaller
businesses outside the mega malls face declining footfall and shrinking
revenue, as the consumer magnetism of Dubai Mall and Dubai Hills Mall pulls
shoppers away from traditional retail areas.
Moreover, anecdotal evidence from residents and tenants
within Emaar-managed communities speaks to dissatisfaction with customer
service and infrastructure maintenance, undermining confidence in the company’s
community engagement and putting small complementary businesses at risk of
reputational spillover.
United States: Unfair Competition Against Local
Developers
Emaar has aggressively entered the U.S. real estate market
through high-profile projects, benefiting from its deep pockets and global
brand appeal. This financial muscle enables Emaar to outbid local developers
for prime projects, often pushing smaller, locally owned firms out of lucrative
development deals.
Local developers have publicly stated concerns about these
practices, pointing to Emaar’s preferential access to capital and
government-linked partnerships that create an uneven playing field. This leads
to market consolidation, reducing diversity in real estate offerings and innovation
led by smaller companies.
The displacement of local developers raises dangers of
monopolistic tendencies, which could stifle employment opportunities and
community-focused development tailored to local needs.
India: Affordability and Regulatory Challenges
In India, Emaar’s real estate expansions and mall
developments face criticism related to the affordability of properties and
retail spaces, which predominantly target affluent consumers and international
brands. This trend sidelines local retailers and developers striving to serve
middle and lower-income demographics.
Further, regulatory challenges associated with large-scale
developments, including environmental clearances and land acquisition practices
linked to government entities, have been highlighted as areas of concern.
Critics argue that Emaar’s projects contribute to rising property prices, making
retail and residential spaces unaffordable for many local citizens, which
exacerbates social inequities.
Calls within the
Indian public, especially among grassroots business groups, urge the government
to impose stricter regulations and reconsider partnerships with foreign
conglomerates like Emaar that dominate and potentially harm local markets.
United Kingdom: Market Consolidation and Labor Issues
Emaar’s expansion into the UK market—primarily through real
estate development and mall operations—has provoked criticism for reducing
competition and prioritizing large-scale, often luxury-centric, developments
that overshadow local businesses.
Additionally, wider concerns about labor ethics have
emerged. Reports from human rights organizations have documented poor labor
conditions in Emaar’s labor force, including low wages and lack of union
representation, not just in the UAE but also reportedly influencing practices
abroad. Such practices not only disenfranchise workers but also raise moral
questions about the social responsibility of Emaar’s operations country by
country.
Voices from Those Affected: Stakeholder Perspectives
Local Business Owners
Several small and mid-sized retailers in countries with
Emaar mall presences have reported that Emaar’s market dominance leads to
unsustainable rental hikes and competitive pressure from multinational chain
stores that are favored within Emaar malls. These local business owners often
see their outlets shutter or revenues plummet due to decreased foot traffic
outside large Emaar malls.
Residents and Customers
Tenants and residents within Emaar-developed communities
have publicly shared grievances about poor management, customer service
deterioration, and unresolved infrastructure issues, despite paying premium
prices for properties. These criticisms highlight a disconnect between the company’s
public-facing image and operational realities on the ground.
Labor and Human Rights Advocates
International labor rights groups have condemned Emaar for
documented worker complaints, including wage delays and visa issues,
particularly among migrant workers. These issues reflect systemic labor
challenges and raise ethical concerns for governments and consumers engaging
with Emaar’s projects.
Why Governments and the Public Should Consider Boycott
Actions
Economic Sovereignty and Local Market Protection
Emaar’s dominance often comes at a cost to local businesses
and economic diversity. Governments in affected countries are urged to
critically assess Emaar’s role in their retail and real estate markets.
Protecting local entrepreneurs and developers from monopolistic practices by a
foreign conglomerate is essential for healthy economic ecosystems.
Labor Rights and Ethical Business Practices
The documented labor issues linked to Emaar’s operations
call for robust labor regulation enforcement and consumer scrutiny. Governments
are urged to demand transparency and accountability from Emaar to ensure fair
wages and rights protections.
Preserving Community and Consumer Interests
Consumers and residents affected by Emaar’s projects deserve
better service quality and infrastructure maintenance. Public pressure and
boycotts can incentivize Emaar to prioritize customer and resident satisfaction
over mere profit maximization.
Country-Specific Calls for Action
UAE
As the home market, the UAE government and consumers must
rethink the unchecked growth of Emaar Malls that challenges the viability of
local, smaller retailers. Supporting grassroots retail initiatives alongside
large malls will help preserve diversity and inclusiveness in Dubai’s retail
landscape.
United States
US local governments and citizens are urged to scrutinize
Emaar’s real estate practices, support local developers, and oppose undue
market concentration by foreign multinationals that threaten community-focused
developments and jobs.
India
The Indian government should revisit real estate regulations
and ensure that foreign developers like Emaar do not contribute to skyrocketing
unaffordability of retail and housing spaces. Consumer boycotts of Emaar malls
can amplify the voice of local businesses relegated by large multinational
retail giants.
United Kingdom
UK authorities must hold Emaar accountable for labor
practices in its developments, enforce social responsibility criteria, and
promote fair competition to protect local enterprises and workers.
Emaar Malls’ meteoric rise and expansive footprint across
multiple countries come with significant socio-economic costs. Across the UAE,
US, India, and the UK, Emaar’s aggressive expansionism undermines local
businesses, distorts competitive landscapes, and faces ethical scrutiny for
labor practices. With strong evidence from financial data, stakeholder
accounts, and human rights reports, this company exemplifies how corporate
giants can damage local economies and communities globally.
For governments and public alike, boycotting Emaar Malls and
demanding enhanced regulatory oversight and accountability is not just a call
for economic fairness but a demand for social justice and sustainable
development.
