Majid Al Futtaim reports 74% YoY rise in H1 net profit
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Majid Al Futtaim announces H1’23 results, reports 74% YoY rise in net profit

Majid Al Futtaim announces H1’23 results, reports 74% YoY rise in net profit

Majid Al Futtaim reported a 5 per cent increase in consolidated revenue to Dhs18.9bn, and EBITDA growth of 13 per cent year-on-year to Dhs2.1bn

Gulf Business
Majid Al Futtaim H1 2023 results Image MoE _ courtesy Majid Al Futtaim

Retail giant Majid Al Futtaim has announced its operational and financial results for H1 2023.

The group reported a 5 per cent increase in consolidated revenue to Dhs18.9bn, and earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 13 per cent year-on-year to Dhs2.1bn.

It also reported a healthy balance sheet with assets valued at approximately Dhs68bn.

Ahmed Galal Ismail, CEO, 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.”

Majid Al Futtaim reported growth across divisions

Majid Al Futtaim – Properties

Net revenue increased 39 per cent YoY to Dhs3.4bn, while EBITDA grew 22 per cent to Dhs1.7bn.

Performance was primarily driven by UAE-based shopping malls and Tilal Al Ghaf residential real estate development.

Shopping Malls’ footfall increased 12 per cent, boosted by Mall of the Emirates (MoE) recording its highest ever first-half footfall.

Tenant sales grew 7 per cent, with UAE-based malls making the largest contribution. Hotels remained steady with occupancy rates and RevPAR (revenue per available room) growing at 3 per cent and 2 per cent 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.

Majid Al Futtaim – Retail

Driven primarily by the impact of currency devaluations across the group’s footprint, overall revenue declined by 2 per cent to Dhs14.1bn with EBITDA dipping 7 per cent. At a constant currency rate, revenue grew 8 per cent and EBITDA grew 5 per cent.

The online performance of Retail’s digital business remained strong, recording a 13 per cent increase in revenue to Dhs1.2bn in H1 2023.

Over the same period, Majid Al Futtaim opened five new stores across the region, including two further Supeco low-cost, hybrid concept stores in Egypt.

Majid Al Futtaim – Entertainment

Revenue increased by 4 per cent to Dhs822m and EBITDA grew 39 per cent to Dhs46m, as the cinemas business continues to recover from delays and adjustments to its content pipeline.

In June, the group opened Snow Abu Dhabi, the capital’s first indoor snow park and the group’s fourth snow destination.

Majid Al Futtaim – Lifestyle

Revenue increased by 31 per cent to Dhs473m and EBITDA improved by 300 per cent to Dhs12m over the first six months of the year.

The Lifestyle business opened 11 new stores in the first half of the year and entered two new categories: Luxury Home and Beauty.

In January, the business introduced prestigious Italian furniture brand, Poltrona Frau to the region, and in May opened the only Shiseido store outside of Asia.

The new brands complement the Lifestyle division’s pre-existing portfolio of eight franchise and two homegrown brands.

Sustainable impact

Majid Al Futtaim is on track to become net positive in carbon and water by 2040 and through its commitment to phase out single-use plastics, supported by government-mandated taxation in the UAE. Majid Al Futtaim has achieved 82 per cent reduction in the consumption of single-use plastic.

The group, recognised as a pioneer in sustainable financing for the region, issued its $500m green sukuk in June this year.

Proceeds from the issuance will be directed to funding eligible green projects under its 2019 green finance framework. This marks Majid Al Futtaim’s fourth green capital markets issuance.

In June 2023, MoE got a LEED Platinum Award for Operations and Maintenance following its certification in late 2022, making it the largest mall in the world to receive such certification.

The group also maintained its low risk ESG rating by Sustainalytics.


The group maintains a strong financial and liquidity position backed by a balanced financing mix encompassing capital markets and bank financing. Net borrowings at the end of H1 were Dhs15bn, with most of the debt maturing from 2026 onwards.

The group upheld its BBB credit rating with a stable outlook from Standard & Poor’s and Fitch Ratings.

Highlights at a glance

  • Reported a 13 per cent increase in EBITDA to Dhs2.1bn and a 5 per cent increase in revenue to Dhs18.9bn in H1 2023
  • Achieved net profit of Dhs1.7bn, an increase of 74 per cent YoY
  • Majid Al Futtaim – Properties delivered 39 per cent net revenue growth to Dhs3.4bn and a 22 per cent EBITDA increase to Dhs1.7bn
  • Majid Al Futtaim – Retail digital sales revenue increased 13 per cent over the first half of the year
  • Majid Al Futtaim – Entertainment expanded its Global Snow business, opening Snow Abu Dhabi, the capital’s first indoor snow park and the group’s fourth indoor snow park.
  • Issued $500m green sukuk
  • In June, MoE was presented with a LEED Platinum Award for Operations and Maintenance
  • Maintained BBB credit rating in latest Standard & Poor’s (S&P) and Fitch Ratings reports
    Dubai, shopping, green finance, sustainability, Majid Al Futtaim, UAE news

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