Majid Al Futtaim, the Dubai-based conglomerate, announced a 25% surge in net operating profit for the first half of 2025, reaching $490 million. This growth occurred despite challenging consumer conditions, particularly in the UAE retail segment, which saw a 6% decline in revenue. The company's resilience was attributed to its diversified operations across 14 markets, with strong performance in development and shopping malls offsetting some retail sector pressures.
The company's total revenue for the first half increased by 1% year-on-year to $4.76 billion. Development revenue significantly jumped by 38%, fueled by ongoing construction projects in Dubai and Cairo. Shopping mall revenue also grew by 12%, driven by strong leasing activity, which helped mitigate softer tourism demand affecting its hotel business in the second quarter. Markets outside the Gulf region, notably Egypt and Kenya, contributed to a 4% revenue growth.
Majid Al Futtaim's CEO, Ahmed Galal Ismail, expressed confidence in the outlook for 2026, highlighting the group's resilient business model. He also revealed the company is closely monitoring Syria for potential future expansion, citing an existing land bank in the country, although it's not part of near-term plans. The total asset base grew 4% year-on-year to $19.88 billion, and the group's development pipeline exceeds $27.2 billion, with $760 million in construction contracts already awarded. The company has also signed a $17 billion agreement with Dubai South for a new mixed-use community and a $3.1 billion partnership for a development in Cairo.
The company's financial results for the full year 2025, previously reported, showed a 41% rise in net profit to $980 million on a 6% revenue increase to $9.77 billion. This full-year performance was attributed to disciplined capital deployment, strong operational excellence, and fair valuation gains on its property portfolio. The group's EBITDA for 2025 increased by 10% to $1.38 billion, surpassing the $1.36 billion mark for the first time, and it generated $950 million in free cash flow, a 25% year-on-year increase.
