Majid Al Futtaim, the Dubai-based retail and leisure pioneer, recently released a statement saying it has recorded $4.9bn (AED17.9bn) in revenues during the first half (H1) of 2019. According to the company, this was achieved despite the market conditions being tough and cost-conscious consumer behaviour across the region.
According to the statement, earnings before interest, tax, depreciation, and amortisation (Ebitda) increased by 1% to reach $571.7m (AED2.1bn) in the first half of 2019. Group assets for the first six months of 2019 were valued at $17.4bn (AED64bn).
Image Credit: Majid Al Futtaim website
The group’s half-yearly results were boosted by the addition of 19 Carrefour stores, two shopping malls, and 65 Vox Cinema screens. In Oman, Majid Al Futtaim opened City Centre Suhar and opened the company’s first shopping mall in Abu Dhabi, My City Centre Masdar, in H1 2019. Earlier this month, the group reported that Mall of Oman was on track for an expected launch in March 2021.
Majid Al Futtaim Ventures saw a jump of 16% to reach $353.9m (AED1.3bn) in the same period, driven largely by the expansion of Vox Cinemas in Saudi Arabia, where it opened 49 screens, according to the statement released by the company.
Image Credit: Majid Al Futtaim website
Alain Bejjani, Chief Executive Officer of Majid Al Futtaim – Holding, said, “The strength and durability of our business
has been a key factor in our financial performance for the first half of 2019, demonstrating the importance of geographic and business model diversification.”
He added that they will continue to invest in talent and technology and said, “I am encouraged by the progress we are making towards our sustainability agenda, which is allowing us to have a positive influence on economies, communities, and societies where we do business.”
The company recently issued the world’s first benchmark corporate Green Sukuk to fund sustainable projects across the group.
READ: Dubai Counting on Retail, Tourism to Break Out of Economic Funk
It was not all an upward swing for the company with Majid Al Futtaim Properties seeing a 3% decline in H1 2019 to reach $571.7m (AED2.1bn). The retail division remained flat at $4bn (AED14.6bn) during the period, driven by store openings in Egypt, which according to Bejjani’s interview to Bloomberg, remains a growth market.
