Currently, one major issue is the service fees, which the company is charging for their services to the property owners. According to EMAAR press release, these services differ and are based on actual cost of the services and facilities provided and the utilities that are involved. According to another press release of the company some time in 2006, EMAAR communities are under warranty period for one year from the completion of construction under which replacements, repairs, and services would be free.
According to Ahmad al Matrooshi, EMAAR managing Director for UAE, they maintain regular maintenance and checks even after the warranty period. Perhaps the real issue here was not really the service fee but the extent of the warranty, which covers only one year after the completion of construction. The warranty covers a very short period and is fixed beginning from the completion of the construction. That means, if one bought a property six months it was completed the buyer has only the remaining six months for which the property is under warranty.
Or, if someone buys a property, which had been completed more than a year ago, the property is no longer under any warranty. It means that if there is any problem arising from the use of the property whether it was caused by poor workmanship, or by what ever reason, the owner will pay service fee to EMAAR for their services and utilities concerns. Although the company has come up with a solution to this problem, it still remains an issue as apparently, the company is protecting its image both in the domestic and international real estate market to maintain its refutation and standards.
In other words, the pressure is being shifted to the property owners to keep up their homes as reflected in the statement of Ahmad Al Falasi, Property Management Director of the Emaar Properties, that the management of the communities to maintain high standard is their priorities. Issue that are positively affecting the company On the positive side, Emaar is proud of its refutation to being able to handle issues in governance, which provides positive image for the company.
According to Mohamed Ali Alabbar Chairman of Emaar advisory council, Emaar is known for having taken the lead in governance issues in the past and is leading the way once again towards developing dynamic and forward looking corporate governance framework that can meet the challenges of the complex business environment. The issue on corporate governance standard is its ability to meet international standards and even to exceed it by being able to set stringent standard.
The issue on good governance has been considered very crucial in ever increasing complex business environment that is influenced by globalization. General issues that has an impact on the company In general, Emaar is confronting different issues that the company had been addressing in a very convincing manner, which adds to the company’s positive image not only in the region’s real estate market but also in the international market economy.
The company’s prompt response to their client’s concerns is a strong demonstration of the company’s ability to address such issues. Quoting Ahmad Al Matroushi, Daniel Bardsley cited that Emaar has different departments like customer care and quality assurance that takes care of the complaints and unconstructive things and these departments are helping the committees on issues such as managing communities, liaison between home owners, sorting out services and promoting community spirit.
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