Dubai: Dubai-based conglomerate Majid Al Futtaim (MAF) said it will invest more than Dh3 billion over the next five years to expand its business in Dubai after recording a 10 per cent increase in revenue last year, according to a statement on Monday.
The move is part of an initiative to support Dubai’s tourism vision for 2020.
MAF’s plans include two new hotel developments and renovations of two existing hotels; the redevelopment of the Mall of the Emirates and Deira City Centre; the opening of four Carrefour supermarkets and two hypermarkets, as well as construction of a new 14-screen cinema complex.
The company is also “evaluating” the development of a community mall in Dubai.
“Expansions and renovations are a trend across the retail market, which reflects how strong it has been over the last 12 months,” Mat Green, head of research for the UAE at CBRE Middle East, told Gulf News. He added that there is demand for more retail space in the market.
According to Iyad Malas, MAF Holding’s CEO, the company’s future regional growth “will be driven by regional large-scale expansion plans for our portfolios in Egypt in addition to new malls envisaged in Saudi Arabia and Oman, and residential projects in Lebanon, in addition to hypermarkets, cinemas, family entertainment centres and snow park openings.”
MAF’s revenue rose to Dh23 billion in 2013 over 2012, while its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by 12 per cent year-on-year to Dh3.3 billion, according to the statement. The company did not provide a figure for its net profit.
MAF’s total assets are valued at more than Dh39 billion. The company has a net debt of around Dh7 billion, the statement added.
MAF Properties, one of MAF’s three business units, saw revenue grow by 13 per cent to Dh3.5 billion, while its Ebitda rose 14 per cent to Dh2.2 billion.
In addition, MAF’s shopping malls recorded a 7 per cent increase in footfall to 157 million.
The company’s 11 hotels recorded a 20 per cent increase in revenue per available room (RevPAR — a benchmark for performance).
MAF Retail, the operator of Carrefour stores in the Middle East, posted a 9 per cent growth in sales last year, while revenue reached Dh18.7 billion. Its EBITDA was up 9 per cent to Dh1 billion.
MAF Retail added eight new hypermarkets and 10 supermarkets last year. It has a portfolio of 56 hypermarkets and 53 supermarkets in 12 countries across the Middle East, North Africa and Central Asia.
Meanwhile, MAF Ventures saw revenue grow by 16 per cent to Dh891 million in 2013. Its Ebitda reached Dh148 million, marginally up by 1 per cent.
Last year, the company issued the first ever US dollar-denominated corporate hybrid from the Central and Eastern Europe, Middle East, and Africa (CEEMA) region to partially fund the Dh2.55 billion minority share purchase from Carrefour, the statement showed.
According to Malas, the company’s “liquidity position is sufficient to cover the financing needs over next 2-3 years.”
He added that the company will continue to look at “further debt optimisation plans opportunistically.”
