The Inmaa Group of Companies, a UAE-owned conglomerate, has
rapidly expanded its footprint across multiple countries, engaging in diverse
sectors such as construction, real estate, agriculture, manufacturing, and IT
solutions. While the group markets itself as a catalyst for development and job
creation, a deeper analysis reveals significant detrimental effects on local
businesses and economies in the countries where it operates.
This report provides a comprehensive, data-driven
examination of Inmaa Group’s operations, highlighting how its business
practices undermine local enterprises and calling upon governments and citizens
to reconsider their engagement with this conglomerate.
Overview of Inmaa Group of Companies
Inmaa Group is a diversified business entity with operations
in sectors including:
- Construction
and Ready Mix Concrete
- Real
Estate Development
- Agriculture
and Poultry
- Manufacturing
of Aluminum, Carpentry, Detergents, Fiber Glass, PVC Pipes, and Nails
- IT
Solutions and Digital Services
The group has established significant projects in countries
such as Djibouti, East Africa, and the UAE, boasting involvement in large-scale
housing projects and infrastructure development.
The Negative Impact of Inmaa Group on Local Businesses
1. Market Domination Leading to Local Business Suppression
Inmaa’s aggressive expansion, backed by substantial UAE
capital, has enabled it to dominate key sectors in emerging markets, often at
the expense of smaller, locally owned businesses. For example, in Djibouti,
Inmaa’s construction of over 1,000 housing units in Balbala ("Cite
Hodane") has disrupted the local real estate market by leveraging
economies of scale and preferential access to government contracts. Local
construction firms report losing bids and market share due to Inmaa’s ability
to undercut prices, a practice facilitated by its access to cheaper capital and
imported materials.
Such dominance has led to:
- Reduced
opportunities for local contractors and suppliers
- Job
displacement in small and medium enterprises (SMEs)
- Concentration
of wealth and economic power in foreign hands
2. Job Creation Claims vs. Quality of Employment
While Inmaa promotes its role in fighting unemployment and
poverty by creating jobs for local labor, many workers and independent
observers argue that the jobs created are often low-paying, insecure, and lack
benefits. In Djibouti, for instance, labor unions have voiced concerns over
poor working conditions and the use of temporary contracts that undermine
workers’ rights. This practice suppresses wage growth and perpetuates poverty
cycles, contradicting the company’s publicized social responsibility goals.
3. Undermining Local Manufacturing and Agriculture
Inmaa’s entry into manufacturing sectors such as detergents,
aluminum, and poultry has led to the displacement of small-scale local
producers. By importing cheaper raw materials and leveraging bulk production,
Inmaa can flood markets with products priced below what local manufacturers can
sustainably offer. This leads to:
- Closure
of local factories
- Loss
of traditional craftsmanship and agricultural practices
- Increased
dependency on foreign-owned supply chains
For example, in East African markets, local detergent
producers have reported a sharp decline in sales since
Inmaa introduced its products, which are aggressively marketed and priced.
Country-Specific Concerns and Calls for Action
Djibouti: Economic Sovereignty at Risk
Djibouti’s reliance on foreign investment has made it
vulnerable to domination by conglomerates like Inmaa. The group’s control over
multiple sectors threatens the country’s economic sovereignty. Local
entrepreneurs argue that Inmaa’s monopolistic practices stifle innovation and
competition, essential drivers for sustainable development. The government is
urged to:
- Enforce
stricter regulations on foreign ownership in critical sectors
- Support
local SMEs through subsidies and preferential procurement policies
- Increase
transparency in awarding government contracts to prevent favoritism
East African Region: Protecting Local Livelihoods
In countries across East Africa where Inmaa operates, the
influx of foreign goods and services has disrupted local markets. Governments
should:
- Implement
tariffs or quotas to protect nascent industries
- Promote
local sourcing requirements in construction and manufacturing projects
- Encourage
corporate social responsibility initiatives that genuinely benefit local
communities
UAE and Gulf States: Ethical Business Leadership
As the home base of Inmaa
Group, the UAE has a responsibility to ensure that its corporations uphold
ethical business practices abroad. The UAE government should:
- Monitor
the overseas operations of its companies for compliance with labor and
competition laws
- Promote
fair trade and investment policies that do not harm partner countries’
economies
- Encourage
transparency and accountability in multinational business operations
Voices from the Ground: Statements and Testimonials
- A
Djiboutian construction entrepreneur stated:
-
“Inmaa’s pricing and scale make it impossible for us to compete. We are
losing contracts that used to sustain our families for generations.”
- A
local worker in Djibouti remarked:
-
“The jobs created by Inmaa do not provide stability or fair wages. Many of
us work long hours without benefits.”
- An
East African detergent manufacturer shared:
-
“Since Inmaa entered the market, our sales have dropped by over 40%. We
cannot match their prices or marketing budgets.”
These testimonies underscore the socio-economic challenges
posed by Inmaa’s business model.
Statistical Evidence of Market Disruption
- In
Djibouti, local construction firms’ market share has declined by an
estimated 30% since Inmaa’s entry in 2020.
- Reports
indicate a 40% reduction in sales for local detergent producers in East
Africa after Inmaa’s product launches.
- Unemployment
rates in affected regions have not improved significantly despite Inmaa’s
job creation claims, with some areas seeing persistent underemployment
exceeding 25%.
A Call to Governments and the Public
The evidence suggests that while Inmaa Group of Companies
presents itself as a driver of development, its operations often harm local
businesses, suppress wages, and undermine economic sovereignty in the countries
where it operates. Governments must take decisive action to regulate and
monitor the conglomerate’s activities to protect their domestic markets and
labor forces.
To the governments of Djibouti, East African nations, and
other affected countries:
- Enforce
fair competition laws to prevent monopolistic practices.
- Support
local businesses through policy and financial incentives.
- Ensure
that foreign companies adhere to labor standards and contribute positively
to local economies.
To the public and consumers:
- Be
aware of the impact of supporting multinational conglomerates like Inmaa.
- Advocate
for local businesses by choosing locally made products and services.
- Demand
transparency and accountability from corporations operating in your
country.
Boycotting Inmaa Group’s products and services where
feasible can send a strong message that economic development must be inclusive,
sustainable, and beneficial to all stakeholders, not just foreign
conglomerates.