Dubai: Mall operator Majid Al Futtaim Holding reported a 17 per cent increase in half-year operating profit to Dh1.5 billion as the retail scene in some Arab Spring countries begins to pick up.

Majid Al Futtaim, which holds franchise rights to Carrefour in 19 markets and operates 11 shopping malls around Mena, saw half-year gross revenue reach Dh 10.7 billion, a 15 per cent increase compared to the same period last year, the company announced on Monday.

“We have seen turnarounds in markets previously impacted by the Arab Spring, with tenant sales increasing about 44 per cent in Egypt and about 23 per cent in Bahrain, in the first half of the year,” said Iyad Malas, CEO of Majid Al Futtaim Holding, said in a statement.

Tenant sales in the UAE and Oman grew by 13 per cent, he said.

Majid Al Futtaim Properties, which owns and operates 11 shopping malls and 10 hotels in Mena, increased half-year revenue by 16 per cent to Dh 1.5 billion compared to the same period last year while profits before tax and interest rose by 12 per cent to Dh 970 million, contributing 64 per cent of the group’s earnings.

Majid Al Futtaim Retail saw revenue increase by 15 per cent year-over-year to Dh 8.9 billion and profit before tax and interest increased by 23 per cent to Dh467 million, which contributed 31 per cent to the group earnings.

Further, Majid Al Futtaim Ventures’ revenues rose by 11 per cent to Dh388 million and profits before interest and tax rose 44 per cent to Dh83 million.

The group’s total assets are valued at Dh37 billion and net debt is Dh7.3 billion. 
Expansions
The company said it plans to continue the expansion of its Carrefour SA franchise, which will include opening three additional hypermarkets during 2012 with the first one being in Georgia this month, another in Egypt and a third in Iran.

MAF also said that it is reviewing “strategic opportunities” in Saudi Arabia, Abu Dhabi and Azerbaijan, while developments in Lebanon and Egypt are “moving forward.”

“Majid Al Futtaim has been on the lookout for attractive opportunities to expand its shopping mall and Retail portfolio in the Middle East, North Africa and Central Asia. Riyadh, Abu Dhabi and Baku, are potential target cities as they possess favourable demographics and increasingly strong retail demand. Entering those markets, especially for malls, depends on finding the right plot of land, in the right location and at the right price; which would also define the scale of the projects we could build there,” Malas said in an email to Gulf News.

“In Lebanon, our “Beirut City Centre” project is scheduled for completion in Q1 2013. We already have signed commitments for almost all of the retail space. In Egypt, we will be starting construction of our “Mall of Egypt” development soon, with a target completion date in 2015,” he noted.

The group’s current liquidity is enough to cover two years of its financing needs, the company said.