Majid Al Futtaim reports 23% jump in H1 profit on digital push, property growth

Majid Al Futtaim, the Middle East’s largest mall operator, reported a 23 per cent jump in H1 net profit excluding valuation and tax, lifted by strong demand for its residential projects and growth in its digital retail arm.

The Dubai-based group posted revenue of Dhs17.3bn ($4.7bn) for the six months to June 30, up 3 per cent year-on-year, while EBITDA rose 9 per cent to Dhs2.3bn.

Net profit excluding valuation and tax increased to Dhs1.3bn from Dhs1bn a year earlier.

The company said its properties business, covering malls and residential developments, delivered a 14 per cent rise in net revenue, while its digital retail unit posted 23 per cent growth, offsetting weaker sales in its brick-and-mortar operations.

Lifestyle revenues rose 15 per cent, while entertainment revenue climbed 11 per cent, driven by VOX Cinemas.

Majid Al Futtaim opened 42 new stores across its portfolio in the period, while free cash flow reached Dhs1.1bn and net debt was reduced to Dhs13.4bn.

Fadel Abdulbaqi Al Ali, chairman of the Board, said: “Majid Al Futtaim’s first half financial performance highlights both the strength of its strategic direction and the group’s commitment to delivering long-term value creation for all stakeholders.”

The group is investing Dhs5bn in expanding its flagship Mall of the Emirates and has also rolled out new luxury brands in Saudi Arabia as part of its lifestyle expansion.

CEO Ahmed Galal Ismail said the results reflected “steady progress on strategic investments and transformation across our core sectors”, highlighting growth in Carrefour Now, the group’s quick-commerce platform, and Precision Media, its AI-enabled advertising business.

Majid Al Futtaim: Key H1 highlights

• H1 2025 revenue up 3 per cent to Dhs17.3bn, EBITDA up 9 per cent  to Dhs2.3bn

• Net profit excluding valuation and tax up 23 per cent to AED 1.3 billion

• Properties revenue up 14 per cent, digital retail revenue up 23 per cent, lifestyle up 15 per cent, entertainment up 11 per cent

• 42 new stores opened across retail and lifestyle businesses

• Free cash flow at Dhs1.1bn, net debt reduced to Dhs13.4bn

• Dhs5bn Mall of the Emirates investment launched, Saudi luxury retail expansion underway