Question

detailed SWOT Analysis of the Emaar Properties and Critically evaluate the different international strategies used by the Emaar Properties to venture into different countries and setup its operations

Answer 1

SWOT Analysis -

1. Strength:
   • Support of United Arab Emirates Government (strategic investor in the company with over 30% shareholding) for land and project acquisition as well as access to government guarranteed debt.
   • Tried and tested business model for project execution and property management.
   • Internationally expanded footprint to hedge any geography specific uncertainties.
   • Relationship with local governments for order acquisition and project implementation.
2. Weakness:
   • Putting most of the eggs (projects) in one UAE basket that is highly fragile because of its overdependence on global trade.
   • Over exposure to debt for project funding.
   • governance issues including violating human rights and treatment of unskilled workers.
3. Opportunities:
   • Inorganic expansion in GCC market through acquisition of viable yet loss making projects.
   • Horizontal diversification through venturing into facility management, hospitality and retail inductries.
   • Easy access to sunrise markets such as North Africa and Eastern Europe.
4. Threats:
   • Relationship between different GCC government such as Qatar with UAE government soured resulting into potential blacklisting of EMAAR projects in those countries.
   • Lack of sustainable economic growth in key markets such as Dubai resulting into high inventories and low number of new projects directly affecting company's short and medium term growth potential.
   • Black Swan scenarios such as global economic downturn and Covid-19 endemic.