Case Study on Emaar Assessment PDF

Running head: STUDY ON EMAAR
Study on EMAAR
Name of the Student
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Table of Contents
Introduction......................................................................................................................................2
Company profile of EMAAR..........................................................................................................2
SWOT analysis of EMAAR............................................................................................................3
International strategies taken by EMAAR to expand its operation.................................................4
Role of UAE Government and WTO..............................................................................................5
Suitable country for EMAAR for expansion...................................................................................5
Pestle analysis of India....................................................................................................................5
Expansion or entry strategies...........................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

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Introduction
The report studies about EMAAR, the real estate giant of UAE. The study is aimed to
discuss about the globalization strategies of the company. The company has gifted many
spectacular buildings to the people of the world and aims to make more such buildings in future.
The report covers a detailed analysis of several aspect of the company (Alabar & Safarik, 2018).
Making all the necessary analysis related to the business of the company the report in the
addresses the expansion and entry strategies in other countries of the country. The importance of
UAE government and WTO is to be analysed in the report. Further, in the report discusses the
possibility of expansion of the company in other countries, thereby suggest a country, and
support the suggestion by PESTLE analysis. Finally, the report provides suitable strategies for
expansion or entry in the suggested country.
Company profile of EMAAR
EMAAR Properties PJSC popularly known as EMAAR is company in UAE that operates
in the field of real estate development. Headquarter of the company is in Dubai is the largest
public listed real estate company in UAE. EMAAR was founded by Mohamed Alabbar in 1997
(Emaar.com., 2020). The company is listed in Dubai Financial Market As per the data of 2018 it
is estimated that the company is valued at $ 9.7 billion. The company has global presence too as
it provides services related to property development and management (Rizvi, 2017). The number
of employees that are working in the company exceeds 6500. The company operates in the
around 36 countries in the world. The regions in which the company operates are North Africa,
North America, Europe, Pan-Asia and Middle East. The company offers service like residential
and commercial property development. The highest building on the world Burj Khalifa is the
creation of EMAAR. The company in addition to real estate deals in hospitality, hotel, resorts,
and other community management services (Abou Hana, 2017). By the volume of the revenue
the company earns it can be said the company is among the largest real estate company with the
earning around $ 5.83 billion.

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SWOT analysis of EMAAR
Strength
 EMAAR operates in around 36
countries in the world showing
considerably high global presence.
 It is the world biggest real estate
developer.
 It is efficient in expanding its
operation by making many joint
ventures.
 Headquarter of the company is in
Dubai which is regarded one of the
most lucrative location for real estate
business (Wojtowitz & Vorster, 2018).
 The portfolio of the company is well
diversified and the company is
focused in it is strategies of expansion.
Weakness
 The company invest in high value
properties which are hard to sell
during period of financial crisis.
 Expansion of real estate business in
somewhat tricky especially in the joint
venture mode.
 The company focus on high value and
areas in other countries.
 The product of the country is not that
diversified in nature.
 The newly introduced loan limits
would weaken the operational
efficiency of the company.
Opportunity
 The Dubai property sector is
recovering at high pace and it is good
news for EMAAR.
 The real estate development attracts
more foreign investors who are eager
to invest in the real estate market of
Dubai (Molotch & Ponzini, 2019).
 The emerging economies are growing
at high pace and thus there are
opportunities of expansion in the
foreign countries.
Threat
 The fluctuation of interest rate impacts
the property market as it affect the
investment.
 The financial crisis that occurred in
2008-2009 had adversely affected the
property market and thus any such
occurrence would again impact the
market. Thus, EMAAR would be
affected (Bodolica, Spraggon &
Shahid, 2018).
 Occurrence of property bubble will
hurt the business of EMAAR.
 Entry of new real estate developer will

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cause to decline the market of
EMAAR.
International strategies taken by EMAAR to expand its operation
EMAAR is very much successful at home but in case of international business, the
company faces difficulties in various countries (Hammoud et al., 2018). According to the Chief
Strategy Officer of the company, Mr. Deepak Jain that the expansion strategies taken by the
company in the international market had not went well. The reasons behind such failures
according to him could be improper timing, selection of partners in haste or wrong assessment of
the market in which it failed to expand successfully. The important countries in respect of market
in which the company tried to expand are India and the US. EMAAR made its entry in the Indian
market in 2005 (Behere, 2017). The expansion strategy it adopted was transnational. The partner
of EMAAR in India was a real estate company named MGF. The company with an objective of
gathering $ 1.7 billion announced IPO in 2008. However, the company failed in India because of
delayed delivery of athletic village for the Commonwealth Games of 2010. During the period of
three years from 2012 to 2014, the company along with its partners made a loss of $206 million.
Further, EMAAR took the same transnational strategy in the case of US alike India. In the US,
the company made entry by acquisition of John Laing Homes. However, the subsidiary of the
company that operates in the US was bankrupt. It is evident that unlike India, EMAAR continues
its business in US.
Moreover, the transnational strategy is the main cause due to which the company failed
both in the US and India. The issues related to the transnational strategy such as political turmoil,
high financial risk and resources extension have impacted adversely the foreign parts of the
company and thus the company failed to expand successfully. (Bezuidenhout & Grater, 2016).
The company should have expanded by making FPI. On realizing the entire story of the real
estate market of the countries, the country would be able to make FDI and might become
successfully operation in the concerned countries.
Role of UAE Government and WTO
Any business that takes place in a country should be lawful as per that laws enacted by
the government of the country. It is the socio-economic policies of a country that contributes to

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the success or failure of business in the country (Kazim, 2018). Additionally, the type of path the
government of the country follows is equally important. It means that whether the government
follows socialism or capitalism. The real estate industry depends more on the government as they
need to adhere to the lands laws too. Therefore, role of the government is important for
expansion of EMAAR. The foreign policies of the country would aid the company to operate and
expand in the foreign countries successfully.
The role of WTO is significant in maintenance of trade relation between the countries.
WTO is the organization that is responsible for GATT and thereby suggests the trade and tariff
regulations that is needed to be followed by the member countries to have smooth experience
international business (Hoda, 2018). Therefore, the WTO assures smooth business among its
member countries. Hence, expansion of EMAAR is dependent on the WTO widely.
Suitable country for EMAAR for expansion
EMAAR had tried to enter the real estate market of India and the US but had failed to
sustain. However, both the countries are potential market for real estate (Ulrichsen, 2016). It
iwas the wrong strategic move by EMAAR earlier, due to which the company failed in the
concerned countries. The company should try to expand its business in the countries namely
India, Australia and Russia because the luxury housing market is growing in these countries.
India is among the top emerging economies in the world (Breman, 2016). The ease of doing
business is improving in India and it is evident from improved rank of the country in the
concerned index. The rank of India in ease of doing business has improved and for the other two
countries, it is already good. Hence, it can be said that EMAAR should consider the option of
expand its business in all the above mentioned countries.
Pestle analysis
Pestle Analysis of Russia
P Russia is a permanent member of the UN. It is the largest country in the world. The government

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of the country is of semi-presidential republic.
E Russia is counted among the largest economies. In 2018, the GDP of the country was $ 1.66
trillion.
S The demand for luxury goods is increasing in the country. One problem of the country is that its
population is declining. The country has both billionaires and poor people with 13% poverty
rate.
T The country has always done in the field of science and thus country is technologically
advanced.
L The law of the country is very strict and the labour laws are stringent in nature.
E The environment of the country faces difficulties due to pollution problems. However, the
country and its population are trying hard to fight this problem.
Pestle Analysis of Australia
P The country is under constitutional monarchy of Elizabeth II. It is member of various
organizations such as WTO, OECD, Commonwealth of Nations etc.
E The country is among the developed countries in the world. The GDP of the country has
growth implying future economic development.
S Quality of life is very good in the country. The health wise the country is at good position
as the life expectancy of the country is above 80 years.
T The country is significantly advance in the field of technology. It adopts to the new
technologies at a faster pace. In 2018, the technological purchases of eh the country grew
by 4%.
L From legal aspect, the country is highly fair with competition laws, trading laws and

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consumer laws.
E The country is known for its scenic beauty and landscapes. The country is also taking
considerable steps to mitigate climate change problems.
Pestle Analysis of India
P India is the largest democratic country in the world. The structure of government in India
is of federal form.
E The industrial reform of the country in 1991 has improved he economic condition of the
country (Sridhar et al., 2016). The FDI in the country increases the economic condition of
the country.
S The population of India is full of youth power. The labour force of the economy
comprised of youth population. Thus, labour power of the country is huge and of great
potential
T From the technological aspect, the country is improving day by day. The success of the
ISRO gives the evidence for that.
L Several legal steps has been taken by the government of the country in the recent times
that affects the business scenario of the country such as change in law of minimum wage,
recycling and discrimination.
E The country is addressing the environment factors as well by the implementing several
environmental regulatory laws.

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Expansion or entry strategies
Figure 1: Ansoff Matrix
Source: (Created by the Author)
EMAAR deals is luxury housing and buildings and it aims to provide best quality product
in the real estate market. Therefore, there is no change in product but it is willing to expand the
business new markets. Hence, considering the Ansoff matrix it can be said that the country
should take the strategy of market penetration and market development.
Conclusion
The above discussion of the EMAAR and its global expansion leads to the conclusion
that the company is successful in UAE and the Middle East countries as far as expansion is
considered. However, from the case study it is evident that the company has failed in its
expansion attempt in the US and India. The reason behind the failure of the company in the
above mentioned expansion is the wrong assessment of the market of the respective countries
and the improper mode of entry strategy. However, the SWOT analysis of the company and the
PESTLE analysis of the suggested countries for expansion it can be inferred that expanding in
India would be beneficial for the company but the company should not go by FDI initially. The
strategy for the company should be market penetration and market development.

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Reference
Abou Hana, M. (2017). Innovation in the UAE: from first foundations to ‘beyond oil’. Global
Policy, 8(3), 414-417.
Alabbar, M. A., & Safarik, D. (2018). Talking Tall: His Excellency Mohamed Ali
Alabbar. CTBUH Journal, (4), 54-57.
Alawadi, K. (2017). Rethinking Dubai's urbanism: Generating sustainable form-based urban
design strategies for an integrated neighborhood. Cities, 60, 353-366.
Behere, D. (2017). INFRASTRUCTURAL GROWTH UNDER MAKE IN INDIA. International
Journal of Management Research and Reviews, 7(6), 655.
Bezuidenhout, H., & Grater, S. (2016). The dimensions of FDI in the tourism sector in Africa.
Bodolica, V., Spraggon, M., & Shahid, A. (2018). Strategic adaptation to environmental jolts: an
analysis of corporate resilience in the property development sector in Dubai. Middle East
Journal of Management, 5(1), 1-20.
Breman, J. (2016). At work in the informal economy of India: A perspective from the bottom up
(OIP). OUP Catalogue.
Emaar.com. (2020). Emaar Properties PJSC | Global Property Developer. (2020). Retrieved 13
March 2020, from https://www.emaar.com/
Hammoud, M., Baker, W., Scheeren, O., Parakh, J., Hean, C. K., Lochhead, H., ... & Hellmuth,
W. (2018). CTBUH 2018 Conference Special. CTBUH Journal, (4), 44-51.
Hoda, A. (2018). Tariff Negotiations and Renegotiations under the GATT and the WTO:
Procedures and Practices. Cambridge University Press.
Kazim, A. (2018). The Emergence of Hyper-Consumerism in UAE Society: A Socio-Cultural
Perspective. Perspectives on Global Development and Technology, 17(4), 353-372.
Molotch, H., & Ponzini, D. (Eds.). (2019). The New Arab Urban: Gulf Cities of Wealth,
Ambition, and Distress. NYU Press.

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Rizvi, K. (2017). Dubai, Anyplace: Histories of Architecture in the Contemporary Middle
East. A Companion to Islamic Art and Architecture, 1245-1266.
Sridhar, R., Sachithanandam, V., Mageswaran, T., Purvaja, R., Ramesh, R., Senthil Vel, A., &
Thirunavukkarasu, E. (2016). A Political, Economic, Social, Technological, Legal and
Environmental (PESTLE) approach for assessment of coastal zone management practice
in India. International Review of Public Administration, 21(3), 216-232.
Ulrichsen, K. C. (2016). State Capitalism and Strategic Niches. In The Gulf States in
International Political Economy (pp. 61-82). Palgrave Macmillan, London.
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iconic buildings. Civil Engineering= Siviele Ingenieurswese, 2018(v26i3), 26-30.