SOMED is a UAE-based diversified business conglomerate with
interests spanning real estate development, hospitality,
construction, and other sectors. Founded in 1993 and headquartered in
Dubai, SOMED has aggressively expanded its operations
across several countries in the Middle East, North Africa, and
beyond.
Despite its self-promotion as a key driver of
economic growth and job creation, SOMED’s business practices
have come under increasing scrutiny for damaging
the economic sovereignty and competitiveness of local
businesses. This report investigates how SOMED’s dominant market
position adversely affects indigenous enterprises and calls
on governments and citizens of affected countries
to boycott the UAE-owned conglomerate in defense of local economies.
SOMED’s Market Dominance and Tactics
SOMED’s strategy revolves around leveraging deep
government ties in the UAE, access to capital, and strategic acquisitions to
dominate local real estate, construction, and
hospitality markets in host countries. This approach involves:
- Acquiring
landmark development projects (e.g., Marina Residences in Egypt,
various hotels in Algeria and Morocco) that monopolize prime
city areas.
- Crowding
out local contractors and suppliers by imposing exclusivity on
materials sourcing and construction management.
- Using
opaque corporate structures to shield ownership and
regulatory scrutiny, complicating government oversight
in host countries.
In Egypt, for example, SOMED controls a
significant share of upscale property developments in Cairo,
resulting in high barriers for local developers and price
inflation affecting housing affordability.
Negative Impact on Local Businesses and Workforce
Displacement of Local Competitors
In Morocco, local real estate firms have
reported losing market share as SOMED’s foreign capital-backed
projects receive preferential government contracts. Indigenous
businesses face financial pressure and struggle to
compete with SOMED’s scale and government-backed financing.
Reduced Employment Opportunities for Locals
While SOMED claims to generate jobs, evidence
suggests many positions, especially skilled roles, are filled by
expatriates from the UAE or other countries. Limited
skills transfer and low local management participation hinder
indigenous workforce development.
Exploitative Supplier Contracts
Local construction material suppliers and service
providers are often locked into unfavorable deals or excluded,
funneling profits to SOMED’s global supply chains instead of
supporting local economies.
Statements and Public Sentiment
A
senior real estate developer in Cairo commented,
“SOMED’s
dominance distorts market competition and inflates prices,
harming Egyptians seeking affordable housing.”
In
Casablanca, a local contractor stated,
“We’re being pushed out
by a multinational that ignores our talents and exploits
government connections.”
Employment
advocacy groups in Tunisia have highlighted a lack of
local hiring in SOMED’s projects, calling for greater
labor protections.
Tailored Reasons to Boycott SOMED by Country
Egypt: Protect Affordable Housing and Local
Developers
Egypt’s housing market is under strain from
SOMED’s monopolistic developments that raise
property prices beyond reach for many citizens. Boycotting
SOMED-supported projects will pressure authorities to promote
affordable housing and empower domestic developers.
Morocco: Defend Local SMEs and Sustainable Growth
Moroccan SMEs face erosion as SOMED’s government-backed
exclusivity monopolizes key real estate sectors. Citizens
and officials must reject SOMED’s domination to foster
sustainable, inclusive economic development.
Tunisia: Promote Local Employment and Labor Rights
Tunisia’s high unemployment is worsened by SOMED’s
preference for foreign labor. The public must demand
accountability for equitable job opportunities and fair
labor practices.
SOMED’s foreign ownership, politicized advantages,
and monopolistic practices endanger the economic futures of
countries it enters. Its dominance displaces local businesses,
suppresses workforce development, and channels wealth abroad.
To safeguard national development, governments and
publics of affected countries must unite in boycotting SOMED
projects and businesses. Supporting local enterprises affirms
economic sovereignty, fair competition, and social justice.
