Business Analysis

1. Running head: SWOT ANALYSIS 1
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SWOT Analysis
Name
Institution

2. SWOT ANALYSIS 2
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Executive Summary
The "Emaar Properties Public Joint Stock Company (PJSC)" is based on recent managerial
and strategic issues facing the organization, which must be resolved prudently to permit
growth, as well as keep up with a competitive spot. Thus, this analysis paper will analysis
presents the case for the company. The analysis first identifies the key issues, then analyses
the cases via relevant strategic models and tools such as the SWOT analysis. The analysis
will assist in ascertaining feasible strategies and solutions for Emaar Properties PJSC.
Alternative solutions are proposed based on the analysis since alternative solutions at times
work as contingency plans.
Emaar Properties is well-positioned within the Dubai real estate market, which is part of its
local market. Besides, the company has diversified its products and services. It has ventured
into Emaar Hospitality Group, Emaar Malls, Emaar Development, and the Emaar
Entertainment in Dubai. As a UAE company, the government has invested a lot in the
company.
The company's opportunities include consolidating its position in the domestic market and
international expansion and diversification of the company's revenue. The critical marketing
plan for Emaar Properties is to solidify its reputation via continued participation in Dubai's
megaprojects.

3. SWOT ANALYSIS 3
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Introduction
Emaar Properties is an Emirati multination based in Dubai. The company is a leading
real estate developer with a strong presence in the Middle East. The company also expanded
its business operations in emerging markets such as broader Asia and North Africa.
The vision of the company is to be the leader and become the most admired real estate
company. Emaar's mission is to develop and deliver exceptional, synchronized lifestyle and
workplace environment centered on solid project execution, high-quality architecture, and
customer-centered approach. The objective is to create "integrated master-planned
communities" made up of residential projects and single or several community facilities such
as commercial or retail developments, hospitals, and schools, that allow a "live, work and
play" theme in the development (Emaar-india.com, 2020).
Company Analysis
External environment analysis is required for the Emaar Properties Public Joint Stock
Company (PJSC) to ensure that the company actively responds to the macro-environment or
external environment. The macro-environment for Emaar Properties PJSC entails business
aspects that are not in control of the company directly. Therefore, Emaar PJSC cannot
influence these variables in its favor. However, these variables directly affect their operations
and performance. As a result, Emaar Properties PJSC must consistently evaluate and review
the macro-environment to ensure it responds to the factors and considers them during
strategic decisions. Besides, strategic model tools should be used continually to ensure that
they comprehend the external environment.
Emaar has been working to satisfy the housing demand in Dubai since its inception.
In the last few years, the company has expanded its scope to include other markets in the
UAE and foreign markets in the Middle East and North Africa. The company consists of
several subsidiaries that operate in real estate, leasing, related activities, and hospitality. It

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develops properties, leases, and manages properties, including malls and residential spaces.
Some properties are sold as whole units, while others are sold as subunits.
The real estate market in Dubai consists of residential and commercial properties. The
demand for Emaar Properties is the high-end income group segment for residential properties
and corporate office supply and management of the business segment. The Dubai real estate
market has a lot of potentials.
The region is on a recovery path since the 2019, and in the COVID-19 pandemic
financial crisis that affected property demand and capital inflows negatively. Currently, many
previously stalled developments are complete or near completion and ready to take in new
occupants. The market is maturing; thus, an increase in the niche management of properties is
emerging. Therefore, companies can either develop or manage properties and still meet their
growth prospects in the Dubai market (Reuters.com, 2020).
With the increased relevance of Dubai as a destination for capital inflows in the global
real estate industry, many companies opt to enter or expand their portfolios in the country.
They grow the industry in the process, thereby allowing companies like Emaar to enjoy
distributed economies of scale and gain quickly from value-added services.
Simultaneously, the UAE government is taking measures to improve businesses by
providing capital for establishment and expansion under different state schemes, mostly in
partnership with private organizations. The support helps local, small, and medium
companies afford office spaces and other facilities for their growth. Meanwhile, real estate
companies continue to experience a boom as the flow of funds into Dubai increases their
products' overall demand (Gulftoday.ae, 2020).
SWOT anlysis
Emaar Properties acknowledges competitiveness as the best and the critical
component locally and internationally via its inventive systems. This ensures that the

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company's strengths are utilized in overcoming the weaknesses existing in the business
intrinsically. The company also operates internal strengths or weaknesses in seizing
opportunities and averting potential threats, such as the markets' dangers.
Thus, these factors are distinguished, evaluated, and analyzed via the strategic SWOT
tool. The SWOT analysis for Emaar Properties looks at the strengths and weaknesses,
specifically the internal main strategic components. Besides, the SWOT tool looks at the
external variables, both opportunities, and threats. The identified external variables include
the nature of competitiveness in the market and industry, which is generally established on
competition intensity.
Emaar Properties requires a SWOT analysis due to its expanded operations. Emaar
Properties is present and operational in various markets, in which each current unique yet
multiple issues in developing the organization's business.
Strengths
Some of the company's strengths include backing by the government and its foreign
expansion and diversification. The government of the United Arab Emirates (UAE) held an
approximately 30% stake in Emaar and was seeking "was seeking up to $1.4 billion for the
assets" (Kerr, 2018). Besides, the government offers non-stringent regulations, when
compared to western economies, to access land for developing. Additionally, the UAE
government has indicated its willingness to support businesses amidst economic crises, for
instance, during the COVID-19 pandemic. For example, the UAE's central bank introduced
new measures in guaranteeing liquidity in the banking system in amidst the coronavirus
outbreak, to boost its stimulus to a total of 256 billion dirhams, that is $ 69.70 billion
(Reuters.com, 2020). Such initiatives can be tapped on when Emaar Properties needs
assistance. Therefore, this helps the company stay sufficiently capitalized and finance its
operations and expand to other markets.

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Emaar International began in 2004 as a strategic move in diversifying markets and
risk reduction associated with the Dubai market's overdependence. As a result, Emaar
International ventured in different needs via its subsidiaries to sustain its future growth and
generate money from alternative revenue streams. Thus, various subsidiaries have partnered
with local governments or other private stakeholders to master the markets. Emaar partnered
with Beijing New Aeropolis Holdings (BNA) in developing an aero economic area for the
Beijing Daxing International Airport. Besides, as of the year 2018, the Emaar Group had a
land bank of approximately 1.6 billion square feet internationally and in the UAE market
(Gulftoday.ae, 2019). The international land bank included those in Saudi Arabia, India,
Morocco, Syria, Turkey, Canada, Pakistan, Egypt, Algeria, Libya, Tunisia, Jordan, and the
US.
Weaknesses
Emaar's weaknesses include overexposure to UAE and operational strategy. In terms
of overexposure to UAE, Emaar has rushed into the global markets to minimize its
overreliance on Dubai. However, the Group's performance indicates the Emaar's international
property development made a 43% increase in revenue to US$ 1.198 billion in the year 2019
when compared to US$ 839 million in the year 2018. The income performance represented
only 18% of the Group's revenue (Illankoon, 2020). Thus, despite its global markets, Emaar
relies on the UAE markets.
Regarding the company's operational strategy, its funding strategy focuses on
restrictive funding from the parent company for land acquisitions and infrastructure
development (DFSA, 2019). Thus, extra funds are obtained at the project level via project-
based debt financing, pre-sales, and Initial Public Offering (IPO) or strategic sales. Emaar
could experience higher interest rates introduced on debts, in case of a stock downgrade, and

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could negatively impact the company in managing their current projects, resulting in
imbalanced operations.
Opportunities
Emaar's opportunities include consolidating its position in the domestic market and
international expansion and diversification of the company's revenue. In terms of domestic
market consolidation, the company is capable of increasing its presence in Dubai. The
company has developed a master-planned Dubai community and made it a lifestyle
destination. In Downtown Dubai, Emaar created one of the Middle East's largest waterfronts,
the Dubai Marina. Besides, they developed the Dubai Creek Harbour. On the other hand,
Emaar has substantial revenue-generating assets, estimated above 915,000 square meters of
rental income assets. In addition to the revenue generation stream, Emaar has over 19 hotels
and resorts, such as the Emaar Hospitality Group, Emaar Malls, Emaar Development, and the
Emaar Entertainment (Gulftoday.ae, 2019).
One of the Emaar's missions includes global expansion and diversification of its
revenue streams. Therefore, the company is embarking on being a global solution provider
for lifestyle. The organization has invested in sectors or activities like malls, education,
hospitals, hotels, and resorts in accomplishing this strategy. The company also partnered or
acquired existing companies to enter new markets for expanded operations and avail new
products and services. The expansion, shifting from the construction sector, will protect the
company from the sectoral crises, when it arises. For instance, Emaar Malls, part of
Subsidiary of Emaar Properties, alone obtained $1.272 billion in 2019 (Gulftoday.ae, 2020).
Threat
Some of the threats that Emaar faces include economic protectionism. Many countries
put in place regulations concerning foreign investments in specific sectors such as
infrastructure. For instance, domestic lobbies within the US successfully disrupted

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investments citing real or supposed national security concerns. Thus, Dubai Ports World in
the US was embroiled in the claims. Therefore, such restrictions could inhibit Emaar from
executing its growth plans successfully (Moran, 2015).
Recommendations
Based on the general external and internal analysis on Emaar Properties PJSC, this
section will avail of a proposal that can help the company make strategic decisions that will
help it enhance its key competencies and capabilities. Besides, the proposal will reduce risks
and threats. Nevertheless, the company has to remain afloat and maintaining its dream of
being a unique provider of real estate products and services. Thus, fundamental steps need
ought to be taken to address most of the issues it is facing ultimately.
First of all, Emaar should focus on the market expansion, as their marketing strategy,
via its further expansion endeavors in Asia and globally. Through growth, marketing, Emaar
will experience success. From the previous announcement, like its partnership with Beijing,
New Aeropolis Holdings (BNA) in developing an aero economic area in China indicates a
tremendous opportunity for its Chinese market expansion. China is an emerging economy
that makes enormous investments in infrastructural development and improvement. Thus,
Emaar properties should further penetrate the Chinese market with subsidiaries and joint
venture other than BNA, like the China Road and Bridge Corporation. Besides, China
receives numerous tourists from different parts of the world, which is a fantastic opportunity
for Emaar properties. Exceptionally its hospitality ventures will be of incredible importance
in China.
The management could consider setting up new markets by investing more in places
not exploited previously. More mergers with existing companies are additionally
advantageous moves. Besides, to avert the threats economic protectionism placed, the
company should partner with home companies, with Emaar as a minor partner, to execute

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their plans successfully in some countries. Besides, Emaar Property is headed in the right
direction. It has drafted different strategies that spike growth and, eventually, increase
revenues like the corporate office's introduction to accommodate its international subsidiaries
efficiently. Therefore helps in reducing suspicion of its operations.
The company should aggressively continue developing their existing sizeable land
banks globally and work on establishing the "Emaar" brand similar that existing in Dubai.
The company is known for handling megaprojects like Dubai, like the Dubai Marina and the
Dubai Creek Harbour. Besides, the organization should monetize its key assets through IPOs
and Real Estate Investment Trusts (REITs), such as in Hospitality, in countries like Egypt,
India, and Turkey to make room for capital growth and reduce debt reliance in funding their
projects. Additionally, the company is advised to enter into joint ventures with various
stakeholders in Dubai to acquire a substantial piece of land with no immediate cash outflow
for purchases or expenditure. The company should develop more rental or mall assets in other
countries, like Egypt and Turkey, to extend Dubai Mall services. Revenues will increase
through this initiative.
Conclusion
Emaar Properties is well-positioned toward enhancing its offerings. This paper
evaluated the current condition of the company as well as its market. Besides, the article has
proposals on business improvement. For Emaar Properties to compete and remain ahead in
the competition, it should continuously improve and quality-manage its projects and ventures.

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References
DFSA. (2019). Base Prospectus: Emaar Sukuk Limited. Retrieved from Dubai Financial
Services Authority: http://dfsa.ae/CMSPages/GetFile.aspx?guid=a5d270b5-ceda-
4105-a548-db173af1dd7c
Emaar-india.com. (2020). Vision and mission. Retrieved from http://emaar-india.com/our-
vision-mission
Gulftoday.ae. (2019, May 31). Emaar partners BNA to develop Daxing International Airport.
Retrieved from https://www.gulftoday.ae/business/2019/05/31/emaar-partners-bna-to-
develop-aero-economic-area-of-beijing-daxing-airport
Gulftoday.ae. (2020, February 9). Emaar Malls records Dhs4.673b revenue growth in 2019,
surges 5%. Retrieved from https://www.gulftoday.ae/business/2020/02/09/emaar-
malls-records-dhs4-673b-revenue-growth-in-2019-surges-5-per-cent
Illankoon, K. (2020, February 13). Emaar records property sales of more than US$ 5.236
billion in 2019. Retrieved from https://www.cbnme.com/news/emaar-records-
property-sales-of-more-than-us-5-236-billion-in-2019/
Kerr, S. (2018, July 16). Dubai developer Emaar puts $1.4bn in assets on sale amid the
downturn. Retrieved from Financial Times: https://www.ft.com/content/cebb95b0-
8835-11e8-bf9e-8771d5404543
Moran, M. (2015). Hidden risks in North American foreign direct investment. London:
Control Risks, Cottons Centre.
Reuters.com. (2020, April 5). UAE central bank boosts anti-coronavirus stimulus to $70
billion. Retrieved from https://www.reuters.com/article/us-health-coronavirus-
emirates-cenbank-idUSKBN21N069