Majid Al Futtaim, a Dubai-based conglomerate, announced a 25% surge in its net operating profit for the first half of 2025, reaching $490 million. This growth was primarily driven by a 38% increase in development revenue, stemming from ongoing construction projects in Dubai and Cairo. Despite this overall profit rise, the company's retail revenue experienced a 6% decline, attributed to difficult consumer conditions, particularly in the UAE, and deliberate strategic transformations.
The company is also exploring potential expansion into Syria, where it already possesses a land bank. While not part of its immediate plans, CEO Ahmed Galal Ismail stated that the company is closely monitoring developments in the country, which is actively seeking investments for economic reconstruction. This comes as Gulf developers and investors, including Arada and Mohamed Alabbar of Emaar, have expressed interest in investing in Syria.
Overall revenue for the first half of 2025 increased by 1% year-on-year to $4.76 billion (Dh17.5 billion), with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) climbing 11% annually to $680 million (Dh2.5 billion). The group's total asset base grew 4% year-on-year to approximately $19.88 billion (Dh73 billion), while net borrowings stood at $3.6 billion (Dh13.2 billion). The company remains confident about its outlook for 2026, citing the resilience and diversification of its businesses across 14 markets. Shopping malls revenue grew 12% due to strong leasing, helping offset softer tourism in hotels, while markets outside the Gulf, notably Egypt and Kenya, saw a 4% revenue increase. Cinema revenue also grew 3%.
The impact of the Iran war on the business was uneven, causing supply chain disruptions and affecting consumer sentiment in some Gulf markets. However, the company noted a quick rebound in consumer spending and no impact on its East African, Egyptian, and Georgian operations. The CEO highlighted the company's strong customer loyalty initiatives and diversification as key factors in maintaining nearly flat mall footfall year-on-year despite regional geopolitical challenges.
