Majid Al-Futtaim, a leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa and Central Asia, announced its operational and financial results for the period ending June 30, 2023. During the first half of the year, Majid Al-Futtaim reported a 5 percent increase in consolidated revenue to 18.9 billion dirhams ($5.1 billion), and earnings before interest, tax, depreciation, and amortization growth of 13 percent year-on-year to 2.1 billion dirhams.
Reporting growth across all its businesses, the group’s positive performance was underpinned by focused efforts to drive operational excellence and further buoyed by the UAE’s thriving economy. The group continues to maintain a healthy balance sheet with assets valued at approximately 68 billion dirhams.
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The performance was primarily driven by UAE-based shopping malls and Tilal Al-Ghaf residential real estate development.
Commenting on the results, Ahmed Galal Ismail, CEO of Majid Al-Futtaim — Holding, said: “Majid Al-Futtaim is successfully balancing strategic growth with profitable and responsible execution. Our efforts to drive defined business objectives across our portfolio with a renewed focus on operational excellence and productivity are delivering sustainable, profitable growth and value to our stakeholders.
“The economic buoyancy of the UAE in conjunction with our internal focus to unlock the inherent power of our ecosystem, has enabled the group to deliver a solid half-year performance. Majid Al-Futtaim will continue to evolve, anchoring strategic choices in value-creation that support the evolving needs of our customers, colleagues and communities across the region.”
The net revenue of Majid Al-Futtaim — Properties increased 39 percent year-on-year to 3.4 billion dirhams, while EBITDA grew 22 percent to 1.7 billion dirhams. The performance was primarily driven by UAE-based shopping malls and Tilal Al-Ghaf residential real estate development.
In shopping malls, footfall increased 12 percent, boosted by Mall of the Emirates recording its highest ever first-half footfall. Tenant sales grew 7 percent, with UAE-based malls making the largest contribution. Hotels remained steady with occupancy rates and revenue per available room growing at 3 percent and 2 percent, respectively.
Tilal Al-Ghaf maintained its impressive sales performance through the first half of the year, including the record-breaking sale of an ultra-luxury villa at Lanai Islands and the completion of 916 residential units, significantly contributing to the sustained growth of the properties business.
