Emaar's Alabbar on why he has a no-discount policy even when sales fall

Mohamed Alabbar, the founder and managing director of Emaar Properties, maintained a no-discount policy even during periods of falling sales, insisting that price cuts undermine the loyalty of first-time customers. During his address at the Sharjah Investment Forum, Alabbar defended his stance, emphasizing his commitment to fairness and quality.

He argued that giving discounts to one group of customers while maintaining higher prices for others is unethical and tantamount to cheating. Alabbar acknowledged that this policy could result in decreased sales, but he was confident that Emaar Properties could still grow at a rate of 40 to 50 percent annually despite occasional downturns.

The founder's reasoning was rooted in his focus on quality, location, service, and value, rather than merely price. Alabbar believed that a brand's reputation is its most valuable asset, and he was determined to protect it by maintaining his no-discount policy. Alabbar also noted a positive shift in the UAE real estate market following the end of the Iran-US war, with sales picking up and hotel occupancy rates rising above 60 percent.

He projected a five-year indicative budget, with the understanding that a one-year slowdown could be acceptable if necessary. Alabbar, who inherited his restless nature from his father, emphasized the importance of dissatisfaction and learning from mistakes. He admitted to previous financial losses in the US and retail sectors, attributing these setbacks to emotional decisions.

However, he highlighted that these experiences taught him valuable lessons in design and people management. Alabbar warned business owners to embrace artificial intelligence (AI) quickly, as those who fail to do so will struggle to remain competitive in the future. He advised young entrepreneurs to pursue their passions and work tirelessly without mercy, stating that no one can match their success if they are driven by their love for their work.