Dubai-based conglomerate Majid Al Futtaim posted its highest ever first half earnings as EBITDA rose 11 per cent year-on-year to Dh2.5 billion, as the group continued to expand its development portfolio, which is now valued at more than Dh100 billion.
Net operating profit after tax was up 25 per cent to Dh1.8 billion, compared to overall revenue growth of just 1 per cent to Dh17.5 billion for the period.
The company said the increase in profits was due to higher revenue from its more profitable development, mall, cinema and digital businesses despite a more challenging second quarter, partly impacted by regional conflict.
The group’s development arm was the stand out performer recording a 38 per cent rise in revenue, with Dh2.8 billion of construction contracts awarded during the period.
Majid Al Futtaim’s flagship developments are a Dh62 billion, 22 million square feet mixed-use community currently being constructed with Dubai South, and ongoing work at Ghaf Woods and the Mall of the Emirates redevelopment.
The group is also launching JUNCTION, a business park in West Cairo as part of an investment exceeding EGP20 billion, and has signed a Cairo partnership with Midar.
Chairman Fadel Abdulbaqi Al Ali credited the performance to disciplined capital allocation and a long-term investment approach, while CEO Ahmed Galal Ismail said the results reflected the strength of the group’s diversified portfolio across its 14 markets, which together serve more than 600 million customers annually.
Not every division fared as well. Retail revenue slipped 6 per cent, weighed down by softer non-food demand in the UAE amid an ongoing business transformation, though markets outside the Gulf, particularly Egypt and Kenya, posted 4 per cent growth.
Malls fared better, with revenue up 12 per cent and net portfolio income rising 4 per cent to Dh2.3 billion, helping offset weaker hotel and tourism demand. Cinema revenue edged up 3 per cent, while digital income grew across entertainment, retail and lifestyle segments.
The group closed the half with Dh13.2 billion in net borrowings and total assets of roughly Dh73 billion, up 4 per cent. Majid Al Futtaim said its cash position and credit facilities cover more than two and a half years of financing needs, giving it room to keep investing in AI, fintech and e-commerce as it pursues its next growth phase across the UAE, Saudi Arabia, Egypt and the wider region.
