Majid Al Futtaim Holding, one of Dubai's largest private-sector companies, expects continued strong performance from its businesses for the rest of 2026, after the company reported a 25 per cent annual jump in its first-half profit on the back of higher revenue.
“Our businesses across the 14 markets where we operate has proven to be quite resilient, our diversification helps us to weather whatever storm comes our way," Ahmed Galal Ismail, chief executive of Majid Al Futtaim, told The National in an interview.
"We are confident about the outlook for 2026."
The Middle East's largest mall operator said on Tuesday that net operating profit after tax for the six months to the end of June climbed to Dh1.8 billion ($490 million).
Revenue rose 1 per cent year-on-year to Dh17.5 billion, with development revenue surging 38 per cent amid ongoing construction activity across its projects in Dubai and Cairo.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the first-half increased 11 per cent on an annual basis to Dh2.5 billion.
The group's total asset base stood at about Dh73 billion, up 4 per cent year-on-year, while net borrowings stood at Dh13.2 billion at the end of fist-half.
The company operates in various markets, including in the Gulf region, Egypt, Pakistan and Levant countries, as well as in Georgia, Kenya and Uganda.
It is now considering potential expansion into Syria, Mr Ismail said. The company is “keeping a close eye” on Syria as part of its expansion plans. “We do have a land bank in the country. We're keeping a close eye on how you know things evolve and quite excited about the prospects of the market, although it's not part of our near-term plans,” he said.
Syria is seeking investments to rebuild its war-ravaged economy and create employment opportunities. Gulf developers and investors have unveiled plans to invest in the country including Arada and Mohamed Alabbar of Emaar.
Founded in 1992, privately owned Majid Al Futtaim Group has operations in various markets across the Gulf region, Egypt, Pakistan and Levant countries, as well as in Georgia, Kenya and Uganda. It owns 29 shopping malls including the flagship Mall of the Emirates, Mall of Egypt, and Mall of Oman as well as City Centre destinations.
Its real estate portfolio includes seven luxury hotels and five mixed-use developments including Ghaf Woods and Tilal Al Ghaf in Dubai, Al Zahia in Sharjah and Al Mouj in Muscat.
It also operates more than 600 Vox cinema screens and a portfolio of brands across a network of nearly 500 shops.
Development pipeline
The group's development pipeline exceeds Dh100 billion, with Dh2.8 billion in construction contracts awarded to date, the company said.
Among the projects launched in the first-half include Dh62 billion agreement with Dubai South in May to develop a 22-million-square-foot mixed-use community near Al Maktoum International Airport. It also unveiled a new partnership with Egypt's developer Midar for a mixed-use development in Cairo valued at $3.1 billion.
Construction is also progressing at its Ghaf Woods master development in Dubai and the Mall of the Emirates redevelopment costing about Dh5 billion.
Shopping malls revenue grew 12 per cent on an annual basis amid strong leasing activity and tenant performance. This has helped the company to offset softer tourism demand in the hotels business during the second quarter. Across asset management portfolio revenue grew 4 per cent year-on-year to Dh2.3 billion.
However, revenue declined 6 per cent in the retail segment driven by non-food categories, reflecting “more challenging consumer conditions – particularly in the UAE – as well as deliberate actions taken as part of the ongoing transformation,” the company said.
At the same time, markets outside the Gulf region recorded a revenue growth of 4 per cent year-on-year, supported by particularly strong growth in Egypt and Kenya. Cinema revenue grew 3 per cent in the first half.
Iran war impact
The impact of Iran war on its business has been uneven, with some markets in the Gulf region affected as a result of supply chain disruption, while there has been no impact on its businesses in East Africa, Egypt and Georgia.
“In the GCC, there has been an impact around supply chain disruptions … there has been an impact around inflationary pressures and consumer sentiment. But what we've seen is a very quick rebound of consumer spend recovery,” Mr Ismail said.
“Our total mall footfall across the operations is almost flat year-on-year and that goes to show how quickly consumer confidence has come. Our investments in customer loyalty is paying off, and obviously the strength of being diversified across multiple cities in the region.”
The war between Iran and the US and Israel, which began on February 28, has tipped the region into one of its worst geopolitical crises in decades. Iran’s repeated attacks on industrial, energy and civilian infrastructure of its Arab neighbours has dented the growth of sectors such as hospitality, aviation, real estate and tourism.
