UAE News: Morgan Stanley Says Dubai Builder Emaar Faces Prisoner’s Dilemma - Bloomberg
Dubai’s largest property developer faces a quandary heading into 2021, according to Morgan Stanley.
Emaar Properties PJSC can stop new projects, which would relieve Dubai’s over-supplied property sector but risk the company losing market share. Or it can resume them, bolstering its position relative to competitors while saturating the market even more.
The company “faces a prisoner’s dilemma,” Morgan Stanley equity analyst Katherine Carpenter said Tuesday.
Its subsidiary Emaar Development PJSC will probably “choose a suboptimal outcome, resuming launches next year,” rather than maximizing shareholder value by waiting for another two years, she said.
The U.S. bank’s note came a day after Mohamed Alabbar, chairman of both companies, said he’s stopping new developments.
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