In 2023, Majid Al Futtaim, the Dubai-based developer of large-scale malls and residential communities, experienced a notable 12% increase in net profit to Dh2.7 billion, attributed partly to advancements in its luxury villa project, Tilal Al Ghaf. Despite a modest 1% rise in overall group revenues to Dh34.5 billion, the company achieved a noteworthy 12% boost in EBITDA to Dh4.6 billion. Particularly noteworthy were the successes within the properties sector, where Majid Al Futtaim Properties saw a substantial 20% year-on-year revenue increase to Dh6.9 billion and a 21% rise in EBITDA to Dh3.6 billion, driven by the performance of UAE-based shopping malls and Tilal Al Ghaf. The company maintained growth across crucial performance metrics, reinforcing its ability to generate healthy cash flows and maintain a robust balance sheet, with total assets climbing to Dh69.7 billion from Dh66.1 billion in 2022.
Ahmed Galal Ismail, CEO of Majid Al Futtaim, emphasized the company’s commitment to delivering profitable growth, highlighting the strong performance of its properties, entertainment, lifestyle businesses, and the success of its retail digital transformation, which yielded a double-digit increase in sales revenue.
Despite regional macroeconomic challenges such as currency devaluation in several markets and geopolitical tensions affecting consumer sentiment, Majid Al Futtaim remains confident in its ability to navigate these challenges and create value for stakeholders in 2024 and beyond. The retail division’s revenue declined 4% due to currency devaluations and geopolitical tensions, with EBITDA decreasing by 15% year-on-year. However, when adjusted for constant currency rates, revenue actually grew by 4% while EBITDA experienced a 4% decline.
Majid Al Futtaim Hotels maintained a solid 82% occupancy rate throughout 2023, with revenues increasing by 4% to Dh700 million and Revenue per Available Room (RevPAR) growing by 5% compared to 2022.