Majid Al Futtaim, one of Dubai's biggest private sector companies and the Middle East's largest mall operator, reported a 12 per cent jump in net profit last year on strong property and entertainment businesses, despite global economic uncertainties.
Net profit in the January-December period rose to Dh2.7 billion ($740 million) while revenue grew 1 per cent annually to Dh34.5 billion, the company said in a statement on Thursday.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the 12 months to the end of December climbed 12 per cent to Dh4.6 billion.
The privately held conglomerate said it “sustained growth across key performance metrics, underscoring its ability to generate healthy cash flows”.
The group’s total assets increased 5.4 per cent on a yearly basis to Dh69.7 billion in 2023.
Ahmed Ismail, chief executive of Majid Al Futtaim, acknowledged the impact of regional macroeconomic challenges such as currency devaluation in Egypt, Lebanon, Pakistan and Kenya, as well as the geopolitical events shaping market dynamics and consumer behaviours.
However, the company is "confident in our ability to navigate the path ahead while delivering value to our stakeholders in 2024 and beyond”, he added.
Founded in 1992, Majid Al Futtaim’s business interests range from retail and leisure to property development. It employs 43,000 people and welcomes 600 million customers to its shopping malls, communities, retail and entertainment destinations each year.
The company said revenue for the property business rose 20 per cent annually to Dh6.9 billion last year, while Ebitda climbed 21 per cent to Dh3.6 billion. It was driven by increased footfall in UAE shopping malls and strong sales at its Tilal Al Ghaf residential property development.
The country's property market rebounded strongly from the coronavirus-induced slowdown on the back of government initiatives and broader growth in Emirates’ economy.
The UAE's economy is expected to grow by 5 per cent this year, driven by a robust expansion in the country's non-oil sector and an increase in foreign direct investment, Abdulla bin Touq, Minister of Economy, said last month.
Meanwhile, Majid Al Futtaim's shopping malls business witnessed tenant sales of Dh30 billion, an increase in overall occupancy to 96 per cent and an 8 per cent rise in footfall, welcoming 232 million visitors last year.
Its hotels witnessed an 82 per cent room occupancy rate. Their revenue increased 4 per cent to Dh700 million.
The retail business, however, reported a 4 per cent drop in revenue to Dh24.7 billion, with Ebitda dipping 15 per cent, “impacted primarily by currency devaluations” and a “shift in consumer sentiment related to geopolitical tensions in the region”, the company said.
Majid Al Futtaim, which opened 20 stores in the region last year, said its digital retail business reported a 17 per cent increase in revenue to Dh2.6 billion.
In September, Majid Al Futtaim launched an initiative to boost local start-ups by connecting them with global market opportunities. It rolled out the Launchpad X concept store – a collaborative commercial shop for entrepreneurs.
Revenue for the company's entertainment business rose 7 per cent annually to Dh1.8 billion as the cinema business continues to recover from “delays and adjustments to its content pipeline”.
The company has expanded its regional footprint with the opening of Snow Abu Dhabi in June 2023, the emirate’s first indoor snow park, and the group’s fourth snow destination in the region.
Its lifestyle businesses recorded a 29 per cent rise in revenue to more than Dh1 billion.
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Brief scoreline:
Toss: South Africa, elected to bowl first
England (311-8): Stokes 89, Morgan 57, Roy 54, Root 51; Ngidi 3-66
South Africa (207): De Kock 68, Van der Dussen 50; Archer 3-27, Stokes 2-12
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
HOW TO WATCH
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Company%20Profile
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
