Credit By: ESC News
Majid Al Futtaim, a prominent conglomerate in the UAE, has reported remarkable financial results for the first half of 2023. The group’s net profit witnessed a substantial year-on-year increase of 74%, reaching Dh1.7 billion. Additionally, consolidated revenue rose by 5.0% to Dh18.9 billion during this period, accompanied by an EBITDA growth of 13%, amounting to Dh2.1 billion. These achievements can be attributed to strategic initiatives to enhance operational efficiency and profitability.
Positive H1 Results
The first half of 2023 proved to be highly fruitful for Majid Al Futtaim, with significant growth in both net profit and revenue. The company’s robust performance was driven by a combination of factors, including its commitment to operational excellence and the overall strength of the UAE’s economy. Majid Al Futtaim maintains a strong balance sheet, with assets valued at approximately Dh68 billion.
Balancing Growth and Responsibility
Ahmed Galal Ismail, the CEO of Majid Al Futtaim – Holding, emphasized the company’s commitment to balancing strategic growth with responsible execution. This approach reflects the group’s dedication to delivering value to stakeholders and ensuring a sustainable and profitable business model.
Strategic Initiatives
Majid Al Futtaim’s success can be attributed to its well-defined business objectives and a renewed focus on operational excellence and productivity. The conglomerate has consistently driven sustainable, profitable growth across its portfolio. The company acknowledges the buoyant economic conditions in the UAE as a contributing factor to its solid half-year performance.
Future Outlook
Majid Al Futtaim remains committed to evolving and adapting to the changing needs of its customers, employees, and communities in the region. The conglomerate’s focus on value creation and strategic choices positions it as a leader in the industry. As it continues to grow and innovate, Majid Al Futtaim aims to provide the best services and experiences to its stakeholders.
Performance by Business Units
Properties Unit:
Majid Al Futtaim’s properties unit achieved impressive results, with a 39% net revenue growth, amounting to Dh3.4 billion. The team also saw a 22% increase in EBITDA, reaching Dh1.7 billion. Increased mall footfall, tenant sales, and the expansion of the residential business bolstered these accomplishments.
Retail Unit:
The retail unit reported a 13% increase in digital sales revenue during the first half of the year, indicating a successful transition to online sales channels.
Entertainment Division:
The entertainment division expanded its Global Snow business by opening Snow Abu Dhabi, the capital’s first indoor snow park. This marked the group’s fourth indoor snow park, demonstrating its commitment to providing unique experiences to its customers.
Commitment to Sustainability
In line with its dedication to sustainable practices, Majid Al Futtaim issued a $500 million Green Sukuk in the first half of the year. This initiative underscores the company’s commitment to sustainable financing opportunities and contributing to environmentally responsible practices in the business world.
Majid Al Futtaim’s impressive H1 performance is a testament to its strategic focus on growth and profitability. With a solid commitment to operational excellence, a thriving economy in the UAE, and a dedication to sustainability, the conglomerate is well-positioned for continued success and innovation in the region.
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