Mohamed Alabbar, founder of Emaar Properties, has reaffirmed his company’s policy of not offering discounts on its real estate products, even during periods of slower sales. Speaking at the Sharjah Investment Forum, Alabbar emphasized that maintaining consistent pricing is a matter of fairness to early buyers, asserting that price reductions for later customers would constitute a breach of trust.

Alabbar explained that the no-discount stance is integral to Emaar’s approach to business, which prioritizes quality, location, service, and long-term value over short-term sales boosts. “I don’t give discounts. I don’t give breaks, I do business one way, I build on quality,” he said, underscoring that the policy is contingent on the product justifying its price point.

He illustrated his principle with a simple analogy: selling a coffee at full price to one customer and then offering it at a 50 percent discount to another months later would be unfair. Applying this to real estate, a discounted price for later buyers would, in his view, equate to cheating those who purchased earlier at higher prices.

While acknowledging that this approach may slow sales, Alabbar stated that Emaar is prepared to accept lower volume in exchange for preserving its reputation. The company has experienced annual growth between 40 and 50 percent over the past five years and can absorb a slowdown without compromising its standards.

Addressing recent market fluctuations linked to geopolitical events, Alabbar noted a clear rebound in buyer confidence following the Iran-US conflict and subsequent ceasefire. Emaar saw cancellations double—from around 600 units to 1,200 monthly—during the crisis, but cancellations have since declined below pre-conflict levels. Meanwhile, sales continue robustly at approximately 4,000 units per month.

Hotel occupancy rates have also improved, exceeding 60 percent, with spending patterns indicating sustained consumer confidence. Alabbar expressed optimism, stating, “The situation that we are in will pass. History has shown us.”

Emaar’s financial planning reflects this outlook, with the company operating on a five-year budget framework reviewed every three to four months. Alabbar indicated a willingness to accept financial losses for a year if necessary to maintain the company’s long-term strategy.

Reflecting on past challenges, Alabbar candidly described Emaar’s investments in the United States as driven by emotion rather than strategy, resulting in financial losses. The company’s 15-year foray into retail also failed to produce profits but provided valuable design experience. He admitted that identifying and retaining top talent has been a late but important learning curve, acknowledging a regional tendency to inadequately reward employees. “In the Middle East, we don’t reward people fairly,” he remarked.

Overall, Alabbar’s remarks present a consistent message: Emaar’s foundation rests on reputation and quality, and the company will not compromise on these principles for short-term gains.