majid al futtaim investor presentation 2022

Majid Al Futtaim announces 2022 financial results

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Majid Al Futtaim is one of the leading drivers of economic growth and impact in the Middle East and North Africa and is a leading foreign direct investor and a catalyst for the region’s economy.

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Majid Al Futtaim reports 12% increase in consolidated revenue in 2022

Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa, and Central Asia, today announced its audited operational and financial results for 2022.

The Group has remained resilient despite increasing challenges in the form of inflation, supply chain pressures and energy shortages slowing global economic growth in 2022. Majid Al Futtaim's consolidated revenue increased by 12% to AED 36.3 billion and EBITDA grew by 4% to AED 4.1 billion, driven by the Group's solid operational performance and relentless focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programs. The Group reported a 2% decrease in net profit to AED 2.4 billion and continues to maintain a strong balance sheet, with assets valued at approximately AED 66 billion, up 9% year-on-year, and net borrowings of AED 14.2 billion.

Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim – Holding, said;

"Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double digital revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74% of total EBITDA. We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region."

Majid Al Futtaim continues to benefit from a sustained upturn in consumer confidence, reflected in an increase in shopping malls footfall, higher hotel occupancy and admissions at cinemas, leisure and entertainment venues.

Retail trends, such as consumer demand for digital and omnichannel experiences, have continued to accelerate. The Group continues to be well positioned to leverage digital opportunities to invest, innovate and enhance its offering to meet consumers' evolving wants and needs.

Majid Al Futtaim remains committed to positive and sustainable economic and societal change in the region. The Group is on track to meet its commitment to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025. In addition,

Majid Al Futtaim's flagship shopping centres, Mall of the Emirates and Mall of Oman, received LEED Platinum certification, adding to the company's green certified properties which now span 4 million square meters.

In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), structured as a USD 1.25 billion Revolving Credit Facility (RCF) tied to the Group’s environmental, social and governance (ESG) related targets, further reinforcing its commitment to achieving its ESG ambitions.

In addition, the Group maintained the ‘Green Star’ status from the Global Real Estate Sustainability Benchmark (GRESB) for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative (SBTi). The Group also maintained its low risk ESG rating by Sustainalytics.

Operating Company Performance

Majid Al Futtaim – Properties: Majid Al Futtaim - Properties' revenue increased by 43% to AED 5.8 billion, while EBITDA grew 16% to AED 3 billion. This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across Shopping Malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021. Shopping mall footfall increased 16% to 212 million visitors, whilst tenant sales grew 11%

Meanwhile, Majid Al Futtaim Hotels portfolio revenue increased 48% to AED 671 million, driven by events such as EXPO 2022, increased demand during Saudi holidays, and the Qatar World Cup. RevPAR (revenue per available room) and average occupancy increased by 50% and 14%, respectively.

In addition, real estate development Tilal Al Ghaf, recorded gross sales value of AED 4.4 billion during the year, whilst recognising revenue of AED 1.8 billion as construction progressed.

Majid Al Futtaim – Retail : Majid Al Futtaim - Retail reported a 7% increase in revenue to AED 28 billion in 2022, driven by renewed consumer confidence, easing of COVID-19 restrictions, and rebound in travel and tourism in countries where Majid Al Futtaim operates. Retail EBITDA declined 14% to AED 1.2 billion.

The Operating Company has expanded its presence in the region, opening 7 hypermarkets and 28 supermarkets across 9 countries and bringing the total number of stores to more than 450.

Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51% year-over-year.

Majid Al Futtaim – Entertainment : Majid Al Futtaim - Entertainment revenue increased 23% to AED 1.6 billion while EBITDA grew 68% to AED 126 million, primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content. The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.

Majid Al Futtaim – Lifestyle : Majid Al Futtaim - Lifestyle reported revenue of AED 801 million, up 38% year-on-year driven by a strong performance across its brands. The Operating Company realised EBITDA growth of 317% to AED 25 million.

Future Investment

The Group plans further expansion in high growth potential markets such as KSA and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence.

The Group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs.

Majid Al Futtaim continues to maintain a strong financial and liquidity position. Following several refinancing actions taken through the year, the Group’s debt maturity profile remains balanced, with a mix of capital markets and bank financing.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its outstanding hybrid notes of USD 500 million with a first call date in September 2022 and replaced them with new green hybrid notes of USD 500 million with a first call date in September 2027. This was the Group's first hybrid transaction in green format and the first green hybrid bond issued by a company in the MENA region.

The Company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings. The ratings reiterate the Company’s credit strengths, resilience of its business model, quality of assets, strong corporate governance, and prudent financial management.

News Source: Dubai Media Office

Written by HiDubai Newswire

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Majid Al Futtaim announces 2022 full year financial results

Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa, and Central Asia, today announced its audited operational and financial results for 2022. The Group has remained resilient despite increasing challenges in the form of inflation, supply chain pressures and energy shortages slowing global economic growth in 2022.

Majid Al Futtaim’s consolidated revenue increased by 12% to AED 36.3 billion and EBITDA grew by 4% to AED 4.1 billion, driven by the Group’s solid operational performance and relentless focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programs. The Group reported a 2% decrease in net profit to AED 2.4 billion and continues to maintain a strong balance sheet, with assets valued at approximately AED 66 billion, up 9% year-on-year, and net borrowings of AED 14.2 billion.

Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim – Holding, said: “”Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double digital revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74% of total EBITDA.

“We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region.”

Majid Al Futtaim continues to benefit from a sustained upturn in consumer confidence, reflected in an increase in shopping malls footfall, higher hotel occupancy and admissions at cinemas, leisure and entertainment venues.

Retail trends, such as consumer demand for digital and omnichannel experiences, have continued to accelerate. The Group continues to be well positioned to leverage digital opportunities to invest, innovate and enhance its offering to meet consumers’ evolving wants and needs.

Majid Al Futtaim remains committed to positive and sustainable economic and societal change in the region. The Group is on track to meet its commitment to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025. In addition, Majid Al Futtaim’s flagship shopping centres, Mall of the Emirates and Mall of Oman, received LEED Platinum certification, adding to the company’s green certified properties which now span 4 million square meters.

In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), structured as a USD 1.25 billion Revolving Credit Facility (RCF) tied to the Group’s environmental, social and governance (ESG) related targets, further reinforcing its commitment to achieving its ESG ambitions.

In addition, the Group maintained the ‘Green Star’ status from the Global Real Estate Sustainability Benchmark (GRESB) for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative (SBTi). The Group also maintained its low risk ESG rating by Sustainalytics.

Operating Company Performance

Majid Al Futtaim – Properties: Majid Al Futtaim – Properties’ revenue increased by 43% to AED 5.8 billion, while EBITDA grew 16% to AED 3 billion. This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across Shopping Malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021. Shopping mall footfall increased 16% to 212 million visitors, whilst tenant sales grew 11%

Meanwhile, Majid Al Futtaim Hotels portfolio revenue increased 48% to AED 671 million, driven by events such as EXPO 2022, increased demand during Saudi holidays, and the Qatar World Cup. RevPAR (revenue per available room) and average occupancy increased by 50% and 14%, respectively.

In addition, real estate development Tilal Al Ghaf, recorded gross sales value of AED 4.4 billion during the year, whilst recognising revenue of AED 1.8 billion as construction progressed.

Majid Al Futtaim – Retail: Majid Al Futtaim – Retail reported a 7% increase in revenue to AED 28 billion in 2022, driven by renewed consumer confidence, easing of COVID-19 restrictions, and rebound in travel and tourism in countries where Majid Al Futtaim operates. Retail EBITDA declined 14% to AED 1.2 billion.

The Operating Company has expanded its presence in the region, opening 7 hypermarkets and 28 supermarkets across 9 countries and bringing the total number of stores to more than 450.

Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51% year-over-year.

Majid Al Futtaim – Entertainment: Majid Al Futtaim – Entertainment revenue increased 23% to AED 1.6 billion while EBITDA grew 68% to AED 126 million, primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content. The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.

Majid Al Futtaim – Lifestyle: Majid Al Futtaim – Lifestyle reported revenue of AED 801 million, up 38% year-on-year driven by a strong performance across its brands. The Operating Company realised EBITDA growth of 317% to AED 25 million.

Future Investment

The Group plans further expansion in high growth potential markets such as KSA and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence.

The Group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs.

Financing Majid Al Futtaim continues to maintain a strong financial and liquidity position. Following several refinancing actions taken through the year, the Group’s debt maturity profile remains balanced, with a mix of capital markets and bank financing.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its outstanding hybrid notes of USD 500 million with a first call date in September 2022 and replaced them with new green hybrid notes of USD 500 million with a first call date in September 2027. This was the Group’s first hybrid transaction in green format and the first green hybrid bond issued by a company in the MENA region.

The Company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings. The ratings reiterate the Company’s credit strengths, resilience of its business model, quality of assets, strong corporate governance, and prudent financial management.

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Majid Al Futtaim 2022 earnings climb 4% on revenue boost despite global challenges

Company’s income from property unit surges 43 per cent on robust performance across its hotels and communities’ businesses.

Majid Al Futtaim said footfall in its malls rose 16 per cent to 212 million visitors last year. Reem Mohammed / The National

Majid Al Futtaim Holding , one of Dubai's biggest private sector companies and the Middle East's largest mall operator, reported an increase of 4 per cent in last year's earnings as revenue rose despite global economic headwinds and rising inflation.

Earnings before interest, taxes, depreciation and amortisation (ebitda) for the 12 months to the end of December climbed to Dh4.1 billion ($1.12 billion), the company said in a statement on Monday.

The privately held conglomerate said the “group's solid operational performance” as well as income from its properties business drove revenue 12 per cent higher on an annual basis to Dh36.3 billion.

Net profit for the reporting period declined 2 per cent to Dh2.4 billion.

The company said its balance sheet remained strong, with assets up 9 per cent year-on-year to approximately Dh66 billion.

"Overall, Majid Al Futtaim delivered balanced growth through 2022," said Ahmed Ismail, chief executive of Majid Al Futtaim Holding.

"Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the group to achieve double-digital revenue growth despite the ongoing macroeconomic challenges.

“The potential impact of these headwinds has been further lessened by the outstanding performance of our properties portfolio, which has contributed 74 per cent of total ebitda.”

The retail industry, which was severely affected during pandemic lockdowns, bounced back strongly in 2021 and has maintained its growth momentum since.

Consumer spending in the UAE increased 22 per cent in the first half of last year, despite a rise in fuel costs and higher inflation , Majid Al Futtaim said in its State of the UAE Retail Economy report in August.

Spending on retail items grew 16 per cent and on non-retail goods rose 31 per cent in the same period, it said.

The economic rebound of the UAE, the Arab world’s second-largest economy, and its booming travel and tourism sector have bucked weaker global economic trends, supporting the growth momentum in the retail sector.

The UAE economy is estimated to have grown by 7.6 per cent last year, the highest in 11 years, driven by the oil and non-oil sectors, after expanding by 3.8 per cent in 2021, the UAE Central Bank said.

It is projected to grow 3.9 per cent this year, the regulator has forecast.

First Abu Dhabi Bank forecasts hydrocarbon and non-hydrocarbon real gross domestic product growth of 5.4 per cent and 4.7 per cent, respectively, for the UAE economy this year.

Emirates NBD expects the UAE's GDP to grow by 3.9 per cent in the year.

Majid Al Futtaim said the company had “solid financial standing” and it remained “fully committed to delivering value-accretive” profitable growth for its shareholders.

The company’s revenue from its property division surged by 43 per cent to Dh5.8 billion, driven by robust performance across its hotels and communities’ businesses.

The shopping-mall segment was boosted by “the full-year impact” of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, as overall mall footfall for the group increased 16 per cent to 212 million visitors.

The company’s hotels portfolio revenue increased 48 per cent to Dh671 million, in part boosted by Expo 2020 Dubai. Revenue per available room and average occupancy increased by 50 per cent and 14 per cent, respectively, last year.

Majid Al Futtaim’s retail business reported a 7 per cent increase in revenue to Dh28 billion last year, driven by “renewed consumer confidence, easing of Covid-19 restrictions and rebound in travel and tourism in countries where Majid Al Futtaim operates”, it said.

The group expanded its presence in the region, opening seven hypermarkets and 28 supermarkets across nine countries that pushed the total number of its stores to more than 450.

The company’s entertainment business revenue increased 23 per cent to Dh1.6 billion, while ebitda grew 68 per cent Dh126 million.

The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the Mena region, is expected to fuel further growth for the business, it said.

Majid Al Futtaim Lifestyle reported revenue of Dh801 million, a 38 per cent year-on-year jump, which the company said was driven by a strong performance across its brands.

Looking ahead, the company plans further expansion in “high growth potential markets such as Saudi Arabia and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence”, it said.

“The group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs."

Majid Al Futtaim, which had net borrowings of Dh14.2 billion at the end of last year, said it continues to maintain a strong financial and liquidity position and its debt maturity profile remains “balanced”, with a mix of capital markets and bank financing.

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Majid Al Futtaim Announces 2022 Full Year Financial Results

Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa, and Central Asia, today announced its audited operational and financial results for 2022. The Group has remained resilient despite increasing challenges in the form of inflation, supply chain pressures and energy shortages slowing global economic growth in 2022. Majid Al Futtaim's consolidated revenue increased by 12% to AED 36.3 billion and EBITDA grew by 4% to AED 4.1 billion, driven by the Group's solid operational performance and relentless focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programs. The Group reported a 2% decrease in net profit to AED 2.4 billion and continues to maintain a strong balance sheet, with assets valued at approximately AED 66 billion, up 9% year-on-year, and net borrowings of AED 14.2 billion.

Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim – Holding, said;

"Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double digital revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74% of total EBITDA.

We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region."

Majid Al Futtaim continues to benefit from a sustained upturn in consumer confidence, reflected in an increase in shopping malls footfall, higher hotel occupancy and admissions at cinemas, leisure and entertainment venues.

Retail trends, such as consumer demand for digital and omnichannel experiences, have continued to accelerate. The Group continues to be well positioned to leverage digital opportunities to invest, innovate and enhance its offering to meet consumers' evolving wants and needs.

Majid Al Futtaim remains committed to positive and sustainable economic and societal change in the region. The Group is on track to meet its commitment to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025. In addition,

Majid Al Futtaim's flagship shopping centres, Mall of the Emirates and Mall of Oman, received LEED Platinum certification, adding to the company's green certified properties which now span 4 million square meters.

In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), structured as a USD 1.25 billion Revolving Credit Facility (RCF) tied to the Group’s environmental, social and governance (ESG) related targets, further reinforcing its commitment to achieving its ESG ambitions.

In addition, the Group maintained the ‘Green Star’ status from the Global Real Estate Sustainability Benchmark (GRESB) for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative (SBTi). The Group also maintained its low risk ESG rating by Sustainalytics.

Operating Company Performance

Majid Al Futtaim – Properties: Majid Al Futtaim - Properties' revenue increased by 43% to AED 5.8 billion, while EBITDA grew 16% to AED 3 billion. This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across Shopping Malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021. Shopping mall footfall increased 16% to 212 million visitors, whilst tenant sales grew 11%

Meanwhile, Majid Al Futtaim Hotels portfolio revenue increased 48% to AED 671 million, driven by events such as EXPO 2022, increased demand during Saudi holidays, and the Qatar World Cup. RevPAR (revenue per available room) and average occupancy increased by 50% and 14%, respectively.

In addition, real estate development Tilal Al Ghaf, recorded gross sales value of AED 4.4 billion during the year, whilst recognising revenue of AED 1.8 billion as construction progressed.

Majid Al Futtaim – Retail: Majid Al Futtaim - Retail reported a 7% increase in revenue to AED 28 billion in 2022, driven by renewed consumer confidence, easing of COVID-19 restrictions, and rebound in travel and tourism in countries where Majid Al Futtaim operates. Retail EBITDA declined 14% to AED 1.2 billion.

The Operating Company has expanded its presence in the region, opening 7 hypermarkets and 28 supermarkets across 9 countries and bringing the total number of stores to more than 450.

Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51% year-over-year.

Majid Al Futtaim – Entertainment: Majid Al Futtaim - Entertainment revenue increased 23% to AED 1.6 billion while EBITDA grew 68% to AED 126 million, primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content. The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.

Majid Al Futtaim – Lifestyle: Majid Al Futtaim - Lifestyle reported revenue of AED 801 million, up 38% year-on-year driven by a strong performance across its brands. The Operating Company realised EBITDA growth of 317% to AED 25 million.

Future Investment

The Group plans further expansion in high growth potential markets such as KSA and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence.

The Group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs.

Majid Al Futtaim continues to maintain a strong financial and liquidity position. Following several refinancing actions taken through the year, the Group’s debt maturity profile remains balanced, with a mix of capital markets and bank financing.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its outstanding hybrid notes of USD 500 million with a first call date in September 2022 and replaced them with new green hybrid notes of USD 500 million with a first call date in September 2027. This was the Group's first hybrid transaction in green format and the first green hybrid bond issued by a company in the MENA region.

The Company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings. The ratings reiterate the Company’s credit strengths, resilience of its business model, quality of assets, strong corporate governance, and prudent financial management. 

Majid Al Futtaim reports 12% rise in revenue in 2022, visitors to malls rise by 16%

• Real Estate

Majid Al Futtaim – Retail’s online sales continued their growth trajectory reporting revenue increase from digital sales by 51 per cent year-over-year

Majid Al Futtaim has announced its audited operational and financial results for 2022.

The company’s consolidated revenue increased by 12 per cent to Dhs36.3bn.

E arnings before interest, taxes, depreciation, and amortisation ( EBITDA) grew by 4 per cent to Dhs4.1bn, driven by the group’s operational performance, investments in digital transformation, data analytics and loyalty programmes.

Majid Al Futtaim benefitted from an increase in shopping malls footfall, higher hotel occupancy and admissions at cinemas, leisure and entertainment venues.

However, the group reported a 2 per cent decrease in net profit to Dhs2.4bn and continues to maintain a strong balance sheet, with assets valued at approximately Dhs66bn, up 9 per cent year-on-year, and net borrowings of Dhs14.2bn, it said in a statement.

ESG milestones

Majid Al Futtaim said it’s on track to meet its commitment to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025.

In addition, Majid Al Futtaim’s flagship shopping centres, Mall of the Emirates and Mall of Oman, received LEED Platinum certification, adding to the company’s green certified properties which now span 4 million square meters.

In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), structured as a $1.25bn revolving credit facility (RCF) tied to the Group’s environmental, social and governance (ESG) related targets, further reinforcing its commitment to achieving its ESG ambitions.

In addition, Majid Al Futtaim maintained the ‘Green Star’ status from the Global Real Estate Sustainability Benchmark  for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative.

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

Majid Al Futtaim companies’ highlights

Properties:  The company’s revenue i ncreased by 43 per cent to Dhs5.8bn, while EBITDA grew 16 per cent to Dhs3bn. This was driven by robust performance across the hotels and communities’ businesses and the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021.

Shopping mall footfall increased 16 per cent to 212 million visitors, whilst tenant sales grew 11 per cent.

Meanwhile, Majid Al Futtaim Hotels portfolio revenue increased 48 per cent to Dhs671m. RevPAR (revenue per available room) and average occupancy increased by 50 per cent and 14 per cent, respectively.

In addition, real estate development Tilal Al Ghaf, recorded gross sales value of Dhs4.4bn during the year, whilst recognising revenue of Dhs1.8bn as construction progressed.

Majid Al Futtaim’s flagship lifestyle destination, @TilalAlGhaf , has secured the prestigious ‘BREEAM Excellent’ certification for its sustainable design, marking a significant achievement in our commitment to ESG, health, and net-zero goals. https://t.co/XtxG1fSqCi (1/5) pic.twitter.com/ZQA3XhafaF — Majid Al Futtaim (@MajidAlFuttaim) February 28, 2023

Retail: The retail division reported a 7 per cent increase in revenue to Dhs28bn in 2022. Retail EBITDA declined 14 per cent to Dhs1.2bn.

The operating company has expanded its presence in the region, opening seven hypermarkets and 28 supermarkets across nine countries and bringing the total number of stores to more than 450.

Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51 per cent year-over-year.

Entertainment: Thee company revenue increased 23 per cent to Dhs1.6bn while EBITDA grew 68 per cent to Dhs126m, primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content.

The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.

Lifestyle: The company reported a revenue of Dhs801m, up 38 per cent year-on-year driven by a strong performance across its brands. The operating company realised EBITDA growth of 317 per cent to Dhs25m.

Overall, the group plans further expansion in high growth potential markets such as Saudi Arabia and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence.

Majid Al Futtaim financing

Majid Al Futtaim continues to maintain a strong financial and liquidity position. Following several refinancing actions taken through the year, the group’s debt maturity profile remains balanced, with a mix of capital markets and bank financing.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022, the group tendered its outstanding hybrid notes of $500m with a first call date in September 2022 and replaced them with new green hybrid notes of $50m with a first call date in September 2027. This was the group’s first hybrid transaction in green format and the first green hybrid bond issued by a company in the MENA region.

The company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings.

Ahmed Galal Ismail, CEO, Majid Al Futtaim – Holding, said: “Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double digital revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74 per cent of total EBITDA.

“We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region.”

In other news, Majid Al Futtaim recently launched Mall of the Metaverse. The announcement was made along the sidelines of the World Government Summit.

Read: UAE’s Majid Al Futtaim launches Mall of the Metaverse

The mall is in the initial phase of development as the group looks “closely” at customers’ needs and expectations.

After multiple stages of testing, Dubai’s first virtual mall will open to visitors “who are seeking increased digital experiences across retail, entertainment and leisure offerings.” a statement said.

Inside the mall, customers’ avatars will find Carrefour, VOX Cinemas, THAT Concept Store, Ghawali and Samsung Store, “with many more brands and exciting features in the pipeline”.

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Majid Al Futtaim’s profit surges 74% as GCC flourishes

UAE retail conglomerate Majid Al Futtaim Holding reported a 74 percent year-on-year rise in net profit to AED1.7 billion ($462.84 million) in the first half of 2023, driven by positive macroeconomic conditions across the Gulf countries.

Revenues rose five percent year on year to AED18.9 billion, fueled by a 37 percent increase in income from the property segment, the company said in its interim financial statement for the first half.

The lifestyle and entertainment businesses reported solid growth, rising 31 percent and four percent, respectively.

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However, retail revenue declined by two percent annually due to currency devaluations in Egypt, Pakistan, Kenya and Lebanon.

Operating profit increased to AED809 million from AED683 million reported in the prior period, primarily driven by higher revenue and higher margins.

Ebitda increased by 13 percent year on year to AED2.1 billion, with Ebitda margin rising by 90 basis points.

Majid Al Futtaim Properties revenue grew by 37 percent to AED3.6 billion in the first six months of 2023 from AED 2.64 billion a year earlier.

The increase was driven by Tilal Al Ghaf development and UAE-based shopping malls, which benefited from increases in rental income due to strong tenant sales.

The key business performance metrics of the shopping mall’s business remained positive, with footfall and tenant sales (excluding Carrefour) rising 12 percent and 10 percent year on year, respectively. Occupancy stood at 95.3 percent, 4.7 percentage points higher than last year.

Shopping mall valuations continued in a positive trajectory, reaching AED1.8 billion, as the flagship Mall of the Emirates recorded its highest valuation since its inception.

Retail revenue from physical stores fell three percent annually, but online revenue rose 13 percent to AED1.2 billion in the six months to June 30, 2023, from AED 1.1 billion for the same period last year.

The company’s net debt increased by AED823 million to AED15 billion in the first half of 2023 from AED14.2 billion on December 31, 2022. Net finance cost increased due to a rise in interest rates and an increase in overall net debt. The increase in net debt was due to cash being utilised to fund working capital requirements.

Majid Al Futtaim did not declare any interim dividend for the period compared to AED400 million in 2022.

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Majid Al Futtaim's 'State of the UAE Retail Economy' report reveals 13 per cent consumer spending increase in 2023

Business retail.

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Consumer spending displayed robust growth throughout 2023

Dubai: Majid Al Futtaim released its annual' State of the UAE Retail Economy' report for 2023. The report revealed that the UAE economy has remained resilient, with the country's Gross Domestic Product (GDP) expanded by 3 per cent due to a robust performance from non-oil sectors.

Consumer spending displayed robust growth throughout the year, delivering a 13 per cent increase in 2023 vs. 2022. Overall, absolute consumer spending in 2023 was split evenly between the first and second half of the year, driven by a 14 per cent increase in the UAE's retail economy and a 12% increase in non-retail spending.

Ahmed Galal Ismail, Chief Executive Officer at Majid Al Futtaim – Holding, said: "The UAE's far-ranging social and economic ambitions continue to fuel the Nation's success in creating long-term prosperity for its people. Over the past 12 months, its proven resilience to external pressures, progressive policy-making, and an investor-friendly business environment have seen the UAE further strengthen its position as a lighthouse for the MENA region."

The UAE successfully reduced inflation from a high of 5.2 per cent in 2022 to 3.3 per cent in 2023.

E-commerce penetration in the UAE has more than doubled since 2019, rising from 5 per cent in 2019 to 12 per cent in 2023. Approximately 70 per cent of transactions are attributed to mobile phones. According to Majid Al Futtaim's point of sale (POS) data, e-commerce consumer spending in the UAE retail economy increased by 15 per cent in 2023.

The UAE's far-ranging social and economic ambitions continue to fuel the Nation's success in creating long-term prosperity for its people. - Ahmed Galal Ismail, Chief Executive Officer at Majid Al Futtaim

Travel and Tourism

The UAE's travel and tourism sectors witnessed significant growth in 2023, with tourist numbers surpassing pre-pandemic levels for the first time. More than half (53 per cent) of international visitors came from Western Europe, South Asia, and the GCC. There was a notable surge in Chinese visitors, which rose by 287% compared to 2022.

Real Estate

Following a solid performance in 2022, the UAE's real estate market thrived in 2023. Transactions were up 18 per cent compared to 2022, with sales values increasing by 39 per cent to Dh370 billion in 2023. Dubai, in particular, has seen a rapid increase in property prices, growing by over 20 per cent annually in 2023.

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#Aldar General News

December 05, 2021

Majid Al Futtaim and Aldar aim to become first developers in UAE to digitalise real estate sales transactions

• MOU signed between both entities on innovation, customer experience, digital transformation and sustainable practices in the real estate sector

Abu Dhabi, UAE – 05 December 2021 : Following the issuance of UAE Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services (“E-Law”), Majid Al Futtaim Communities, part of Majid Al Futtaim Properties, and Aldar Properties are working together to create and implement digital real estate sales platforms for their businesses. Allowing for convenient digital real estate sale transactions, the developers are aiming to be the first to implement such online sales systems in the UAE, with the platforms set to be launched when the E-Law comes into effect in Q1 2022.

The new E-Law allows for real estate transactions to be included within its scope of application. The digitalisation of the real estate transactions will make property purchases, sales and management a simple, quick and convenient process for both UAE and overseas customers. The E-Law regulates and allows electronic transactions to be conducted with confidence by recognising that a verified electronic signature has the same legal validity as a physical signature.

The move to electronic real estate transactions not only significantly reduces the time required to complete transactions, but it also enhances the customer experience and is more environmentally friendly due to the reduction in paper usage. Buyers can complete the transactions digitally from the comfort of their own home or office, regardless of where they are in the world.

The collaboration between Majid Al Futtaim and Aldar follows the recent signing of a Memorandum of Understanding (MOU) that will see both parties work together to enhance innovation, customer experience, digital transformation and sustainable practices in the real estate sector. Supporting the UAE’s drive to increase the contribution of the Fourth Industrial Revolution to the national economy, the MOU aims to encourage further knowledge sharing and collaborative innovation in the real estate sector.

“The issuance of the new E-Law and the initiation of our new digital real estate sales platform marks the next step in our digital transformation journey as we aim to become the region’s most customer-centric developer. As the first real estate organisations in the UAE to adopt this online system, Majid Al Futtaim welcomes this collaboration with Aldar and aims to work together to create a more innovative industry. Moving forward, this will allow our customers to experience seamless and safe transactions regardless of their location.” said Hawazen Esber, Chief Executive Officer, Majid Al Futtaim Communities.

Jonathan Emery, Chief Executive Officer at Aldar Development commented : “The new E-law is a significant development for the UAE’s real estate sector. It will not only improve the experience for buyers but encourage overseas investment in what is a modern and digitalized market. Together with Majid Al Futtaim – Communities, we hope to encourage further collaboration within the industry to ensure that the UAE’s real estate market is at the forefront of innovation, digital transformation and sustainability.”

The introduction of new visa reforms, the ease of business ownership, as well as the economic impact of Expo 2020 Dubai has strengthened the UAE’s position as a hub to live and work and created a perfect opportunity for real estate owners and investors who are on the lookout for a strong property market. The new system increases operational efficiencies, which results both in cost reduction and a more seamless experience, creating a simplified platform for both investors and customers. Driving environmentally-friendly business practices Majid Al Futtaim Communities and Aldar Properties remain at the forefront of the UAE’s efforts to create a more digital future, supporting further efficiencies in the real estate transaction management processes.

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PRESSR: Dubai Food Festival 2024: Get ready to feast your senses at Mall of the Emirates and City Centre malls

Dubai, UAE:  Food enthusiasts, gear up for an epicurean adventure like no other at the Mall of the Emirates and various other City Centres this Dubai Food Festival. Until May 17, 2024, you can indulge your taste buds and earn while you eat with a sizzling 25% cashback in SHARE points on your dining receipts across all F&B categories.

That’s right, from your favourite latte to the most delicious dinner, we’re talking 100X SHARE points back in your pocket! These points are availed on all dining receipts across Majid Al Futtaim brands and experiences. Collected points can then be redeemed towards any of your purchases in any Majid Al Futtaim mall.

This Dubai Food Festival, don’t just dine – but dine and earn at your favourite shopping malls. See you there, foodies!

Mall of the Emirates

Your dining escapade wouldn’t be complete without visiting the UAE’s most popular shopping mall. The main F&B outlets are in full swing, including The Cheesecake Factory, PF Chang’s, Din Tai Fung, Cipriani Dolci and Pierre Marcolini.

DFF offer: Get 25% cashback on your spend in SHARE points

City Centre Mirdif

Craving something sweet or need that caffeine fix? Swing by dessert and coffee/tea shops like L’éclair De Genie, L’eto, SO Tea and La Romana Gelato for a treat or drop into Wagamama and The Coop for a hearty meal.

Also participating: The Butcher Shop & Grill, Nando’s, Hitchki, Switch, Parkers, Falla, Leila and Bosporus.

City Centre Deira

For those who love their brews and treats, Filli Café, iCoffee, Costa, Tim Hortons, and La Michoacana await. Don’t miss out on the unique dining experience at Food Central, the one-stop dining destination with a mix of cultural and traditional influences, with Kenny Rogers, Golden Fork, Izakaya Canteen, Acai Spot and Sokak, among others.

Also participating: The Coffee Club, La Gaufrette, Gazebo, Jollibee, and Kamat.

City Centre Al Zahia

This mall is laying out the sweet treats for you this DFF. Treat yourself to a chocolatey indulgence at Chocomelt or French confectionery at Laduree, sip on sophisticated brews at EL &N, try out Japanese sweets at Yatsudoki or the speciality waffles and desserts at Donafello.

Also participating: The Copper Table Bistro, Sand, Grand Abshar, Tanuki, 71 Steak & Grill, Mara, The Bukkhad Café.

Media Contact:

Sarah Alsalem

[email protected]

About Majid Al Futtaim

Founded in 1992, Majid Al Futtaim is a diversified lifestyle conglomerate spanning 16 countries across the Middle East, Africa and Asia. The company employs 46,000 people representing 114 nationalities and welcomes 600 million customers to its shopping malls, communities, retail and entertainment destinations each year. 

With owned assets valued at US$18 billion, Majid Al Futtaim has the highest credit rating (BBB) among privately-held corporates in the region. The company is committed to becoming Net Positive in water and carbon by 2040.

About Majid Al Futtaim  Asset Management 

Majid Al Futtaim owns and operates 29 shopping malls in the UAE, Egypt, Bahrain, Lebanon and Oman.  The portfolio includes Mall of the Emirates, Mall of Egypt, Mall of Oman, City Centre malls, My City Centre neighbourhood centres, and five joint venture community malls with the Government of Sharjah. They also operate omnichannel services including online Shoppable Mall, Digital Concierge, an AI empowered Store of the Future and the region’s first Mall of the Metaverse. All of this is powered by the UAE’s fastest growing loyalty program SHARE which offers customers a more personalised and data driven experience in the malls along with privileges like VIP Lounge access and Smart parking.

Majid Al Futtaim develops hotels that are connected, or adjacent to, shopping malls offering value, convenience and experience to guests from overseas, the region and the surrounding business community. Majid Al Futtaim owns 11 hotels in the UAE and 2 in Bahrain, all operated by international hotel brands such as Sheraton, Novotel, Ibis, Aloft, Hilton Garden Inn, Kempinski Hotel, Pullman, Le Meridien and The Westin.  In 2022, Majid Al Futtaim became the first and only conglomerate in the world to be awarded the prestigious LEED Platinum certification for its portfolio of hotels.

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Majid Al Futtaim Announces 2022 Full Year Financial Results

• March 6, 2023
• No Comments

Majid Al Futtaim, the leading shopping malls, communities, retail and leisure pioneer across the Middle East, Africa, and Central Asia, today announced its audited operational and financial results for 2022. The Group has remained resilient despite increasing challenges in the form of inflation, supply chain pressures and energy shortages slowing global economic growth in 2022.

Majid Al Futtaim’s consolidated revenue increased by 12% to AED 36.3 billion and EBITDA grew by 4% to AED 4.1 billion, driven by the Group’s solid operational performance and relentless focus on improving the customer experience through investments in digital transformation, data analytics and loyalty programs. The Group reported a 2% decrease in net profit to AED 2.4 billion and continues to maintain a strong balance sheet, with assets valued at approximately AED 66 billion, up 9% year-on-year, and net borrowings of AED 14.2 billion.

Ahmed Galal Ismail, Chief Executive Officer, Majid Al Futtaim – Holding, said;

“Overall, Majid Al Futtaim delivered balanced growth through 2022. Positive contributions from across our portfolio, bolstered by the inherent strength of the UAE economy, have enabled the Group to achieve double digital revenue growth despite the ongoing macroeconomic challenges. The potential impact of these headwinds has been further lessened by the outstanding performance of our Properties portfolio, which has contributed 74% of total EBITDA.

We continue to uphold the values that constitute the Majid Al Futtaim institution, underpinned by solid financial standing and a robust balance sheet. We remain fully committed to delivering value-accretive profitable growth for our shareholders and contributing to the sustainable growth and prosperity of the MENA region.”

Majid Al Futtaim continues to benefit from a sustained upturn in consumer confidence, reflected in an increase in shopping malls footfall, higher hotel occupancy and admissions at cinemas, leisure and entertainment venues.

Retail trends, such as consumer demand for digital and omnichannel experiences, have continued to accelerate. The Group continues to be well positioned to leverage digital opportunities to invest, innovate and enhance its offering to meet consumers’ evolving wants and needs.

Majid Al Futtaim remains committed to positive and sustainable economic and societal change in the region. The Group is on track to meet its commitment to achieve a positive water and energy footprint by 2040 and eliminate single-use plastic in all its operations by 2025. In addition,

Majid Al Futtaim’s flagship shopping centres, Mall of the Emirates and Mall of Oman, received LEED Platinum certification, adding to the company’s green certified properties which now span 4 million square meters.

In September 2022, Majid Al Futtaim signed its second Sustainability-Linked Loan (SLL), structured as a USD 1.25 billion Revolving Credit Facility (RCF) tied to the Group’s environmental, social and governance (ESG) related targets, further reinforcing its commitment to achieving its ESG ambitions.

In addition, the Group maintained the ‘Green Star’ status from the Global Real Estate Sustainability Benchmark (GRESB) for implementing outstanding sustainability practices, strengthened by the progress made against its 2040 net positive commitment and greenhouse gas emissions validated this year by the Science-Based Targets initiative (SBTi). The Group also maintained its low risk ESG rating by Sustainalytics.

Operating Company Performance

Majid Al Futtaim – Properties: Majid Al Futtaim – Properties’ revenue increased by 43% to AED 5.8 billion, while EBITDA grew 16% to AED 3 billion. This was driven by robust performance across the hotels and communities’ businesses and bolstered by the continued strong recovery across Shopping Malls, including the full year impact of City Centre Al Zahia in Sharjah and Mall of Oman in Muscat, which opened in 2021. Shopping mall footfall increased 16% to 212 million visitors, whilst tenant sales grew 11%

Meanwhile, Majid Al Futtaim Hotels portfolio revenue increased 48% to AED 671 million, driven by events such as EXPO 2022, increased demand during Saudi holidays, and the Qatar World Cup. RevPAR (revenue per available room) and average occupancy increased by 50% and 14%, respectively.

In addition, real estate development Tilal Al Ghaf, recorded gross sales value of AED 4.4 billion during the year, whilst recognising revenue of AED 1.8 billion as construction progressed.

Majid Al Futtaim – Retail: Majid Al Futtaim – Retail reported a 7% increase in revenue to AED 28 billion in 2022, driven by renewed consumer confidence, easing of COVID-19 restrictions, and rebound in travel and tourism in countries where Majid Al Futtaim operates. Retail EBITDA declined 14% to AED 1.2 billion.

The Operating Company has expanded its presence in the region, opening 7 hypermarkets and 28 supermarkets across 9 countries and bringing the total number of stores to more than 450.

Majid Al Futtaim Retail’s long-term investment in enhancing its omnichannel offering contributed to revenue growth from digital sales by 51% year-over-year.

Majid Al Futtaim – Entertainment: Majid Al Futtaim – Entertainment revenue increased 23% to AED 1.6 billion while EBITDA grew 68% to AED 126 million, primarily due to improved performance following the relaxation of occupancy restrictions and the release of strong movie content. The signing of distribution rights with Warner Bros. Pictures, which was followed by securing distribution rights for Universal in 14 countries in the MENA region starting February 2023, is expected to fuel further growth for Majid Al Futtaim Entertainment.

Majid Al Futtaim – Lifestyle: Majid Al Futtaim – Lifestyle reported revenue of AED 801 million, up 38% year-on-year driven by a strong performance across its brands. The Operating Company realised EBITDA growth of 317% to AED 25 million.

Future Investment

The Group plans further expansion in high growth potential markets such as KSA and Egypt, as well as in its home market, the UAE, amid a resurgence in consumer confidence.

The Group will also continue to invest and expand its omnichannel presence, to ensure the business is future-proof and is delivering on the changing customer needs.

Majid Al Futtaim continues to maintain a strong financial and liquidity position. Following several refinancing actions taken through the year, the Group’s debt maturity profile remains balanced, with a mix of capital markets and bank financing.

Against the backdrop of challenging macroeconomic conditions and volatile financial markets, in June 2022 the Group tendered its outstanding hybrid notes of USD 500 million with a first call date in September 2022 and replaced them with new green hybrid notes of USD 500 million with a first call date in September 2027. This was the Group’s first hybrid transaction in green format and the first green hybrid bond issued by a company in the MENA region.

The Company’s credit rating has been maintained at ‘BBB’ with a stable outlook by both Standard & Poor’s and Fitch Ratings. The ratings reiterate the Company’s credit strengths, resilience of its business model, quality of assets, strong corporate governance, and prudent financial management. 

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