Majid Al Futtaim malls see AED14.4 billion in revenues in H1 2022


Majid Al Futtaim, regional operator of shopping centres, has reported AED14.4 billion in retail revenue for the first half of this year, marking a 9 per cent increase from the same period of last year.

The group attributed the rise in revenue to growing footfall amid increased tourism, rises in consumers’ purchasing power and relaxed restrictions following Covid-19 pandemic lockdowns.

Although the operator recorded a 9 per cent decrease in earnings before interest, taxes, depreciation and amortisation, its revenue from like-to-like sales rose by AED268 million.

“A strong, customer-focused strategy supported by unrivalled data and analytics capabilities has enabled Majid Al Futtaim to deliver sustained growth through H1 2022,” said Alain Bejjani, CEO of Majid Al Futtaim – Holding.

“Our efforts have been further amplified by MENA’s steady progress in moving beyond post-pandemic recovery as we collectively turn our efforts toward economic expansion and regional prosperity.

Majid Al Futtaim also reported a 73 per cent increase in digital sales, worth AED453 million, from the first half of last year to that of this year.

To capitalise on consumers’ preferences for digital shopping experiences, the group has invested in its digital transformation initiatives, such as express commerce concepts, across the region.

Besides further improving its digital measures, the group aims to invest in its data and analytics operations, customer experiences and loyalty programmes.

“The growth delivered in the first half of the year is encouraging. While our region is not immune to building global inflation and supply chain pressures, Majid Al Futtaim remains optimistic towards the broader economic outlook,” Mr Bejjani added.

“Our prudent financial discipline and strong governance ensures our reliance in the face of any immediate impact while ensuring we are well-positioned to remain focused on sustainable value creation.”

In the first half of this year, Majid Al Futtaim has opened 18 stores across the region, including the first-of-its-kind Carrefour BIO outlet in Dubai’s City Centre Me’aisem.

The supermarket, which houses Carrefour’s first in-store hydroponic farm, marks the group’s sustainability efforts.

As first in the region to receive a $1.5 billion sustainability-linked loan, Majid Al Futtaim aims to ensure all its shopping centres are LEED certified by 2026.

Last year, 45 of the operator’s stores were LEED certified, BREEAM certified or equivalent, 35 more than those in 2020.

The group’s ongoing projects include construction of Riyadh’s Mall of Saudi and redevelopment of Dubai’s Mall of the Emirates.