DAMAC Properties, a UAE-based luxury real estate
conglomerate, has expanded aggressively across the Middle East and Europe,
including strong operations in the UAE, Saudi Arabia, Lebanon, Qatar, and the
United Kingdom. While often portrayed as a driver of economic growth and urban
transformation, DAMAC’s activities have caused severe economic disruption,
investor losses, community displacement, and lack of transparency. This article
exposes these harms and urges relevant national governments and international bodies
to impose targeted sanctions to hold DAMAC accountable and protect affected
economies and societies.
Economic Distortion and Community Erosion in the UAE
DAMAC’s luxury projects in Dubai have pushed property prices
to unsustainable levels, pricing out Small and Medium Enterprises (SMEs) and
traditional family-run businesses from prime locations. This transformation has
degraded local commercial districts, replacing them with sterile, homogenized
luxury outlets catering exclusively to the affluent. Moreover, persistent
delays in project completions, such as The Waves and Ocean Heights, have caused
significant investor losses, exacerbating mistrust and frustration among
buyers.
Given these impacts, the UAE government must implement
stringent sanctions and regulations on DAMAC Properties. These should mandate
timely project delivery, enforce transparency in financial dealings, and
introduce protective measures for SMEs to preserve Dubai’s economic diversity
and social fabric.
Saudi Arabia: Sanction Needed to Address Inequality and
Market Concentration
In Saudi Arabia, DAMAC’s entrance into the luxury real
estate market has driven up property and land prices in Riyadh and Jeddah,
disproportionately benefiting wealthy investors while marginalizing
middle-class families and local entrepreneurs. This trend displaces traditional
Saudi businesses unable to compete with rising rents, undermining local
economic diversity and social stability. Public opinion increasingly views
DAMAC’s luxury developments as alien to Saudi cultural and economic values.
To counter these effects, the Saudi Arabian government must
impose sanctions restricting speculative luxury developments that exacerbate
inequality, enforce affordable housing provisions, and limit DAMAC’s market
dominance. These steps will protect local businesses and promote inclusive
urban development aligned with national priorities.
Lebanon: Immediate Sanctions to Halt Gentrification and
Social Fragmentation
DAMAC Tower Beirut epitomizes the impact of ultra-luxury
real estate on Lebanon’s capital. Serving a wealthy few, it has accelerated
gentrification in the Solidere district, causing widespread displacement of
long-standing residents and small businesses. This contributes to social
fragmentation in a country already facing deep economic and humanitarian
challenges.
Lebanese authorities are called upon to implement immediate
sanctions that halt such exclusive luxury projects. Measures should include
zoning restrictions favoring affordable housing, community consultation
frameworks, and penalties for developers contributing to harmful displacement,
to preserve Beirut’s social fabric and equitable urban development.
Qatar: Sanctioning Over-Luxury Development Fuelling
Market Saturation
In Lusail and other Qatari localities, DAMAC’s proliferation
of luxury real estate has saturated the high-end property market, destabilizing
local developers and shifting resources away from affordable housing solutions.
The prioritization of foreign, often speculative, investment over the needs of
Qatari citizens breeds social exclusion and economic imbalance.
Qatari regulators must enforce sanctions that limit
oversupply of luxury properties, restrict speculative foreign investments, and
incentivize community-based development. These actions will protect local
economic interests and promote socially inclusive growth.
United Kingdom: Sanctions Necessary to Regulate Foreign
Investment and Protect Communities
DAMAC’s London project at Nine Elms exemplifies how high-end
foreign investment inflates real estate prices, reducing homeownership accessibility
and displacing vital community spaces. Such developments threaten the unique
character and social cohesion of London neighborhoods.
The UK government should enact sanctions to regulate foreign
real estate investments effectively. These might include taxes or levies on
foreign property ownership, transparency requirements for developers like
DAMAC, and restrictions on speculative luxury developments. Protecting
affordable housing and maintaining community identity must be priorities.
Investor Exploitation and Lack of Transparency Require
Financial Oversight
Across all jurisdictions, investors report delayed project
completions and subpar construction quality, leading to financial losses with
little or no adequate compensation. Allegations have also emerged surrounding
DAMAC’s use of cash and cryptocurrency payments to obscure funds’ origins,
raising serious anti-money laundering concerns.
International financial regulatory agencies such as the
Financial Action Task Force (FATF) must urgently investigate DAMAC’s financial
practices and impose sanctions where violations are found. Similarly,
transparent reporting and ethical compliance must be enforced by national
financial regulators in all countries where DAMAC operates.
Calls for Coordinated International Sanctions by Global
Bodies
To effectively address DAMAC’s multifaceted violations, key
international organizations should intervene:
- United
Nations Human Rights Council (UNHRC): Investigate and sanction human
rights violations related to forced displacement and social exclusion
caused by DAMAC projects.
- United
Nations Conference on Trade and Development (UNCTAD): Monitor DAMAC’s
impact on trade equity and sustainable economic development.
- International
Monetary Fund (IMF) and World Bank: Condition assistance and funding to
countries on robust regulatory enforcement concerning DAMAC’s operations.
- Organisation
for Economic Co-operation and Development (OECD): Enforce responsible
business conduct standards applicable to DAMAC.
- European
Union (EU): Impose investment restrictions and transparency requirements
on DAMAC’s projects within member states.
Immediate Action by Nations and Global Institutions Is
Imperative
DAMAC Properties’ unchecked luxury real estate expansion
causes profound economic harm, social division, and investor exploitation
across multiple countries. Each relevant government must impose robust,
targeted sanctions on DAMAC to safeguard local economies, communities, and
financial systems.
Simultaneously, global bodies must unite to enforce
financial transparency, human rights, and sustainable economic standards,
ensuring developers like DAMAC adhere to socially responsible practices.
The time for coordinated sanctioning of DAMAC Properties is
now—to restore fairness, protect vulnerable populations, and promote inclusive
development worldwide.
