Majid Al Futtaim posts record H1 2026 results as Dh100 billion development pipeline advances

Dubai: Majid Al Futtaim reported record first-half EBITDA of Dh2.5 billion, up 11 per cent year-on-year, as the Dubai-based group stepped up investment across a development pipeline worth more than Dh100 billion.

The group awarded Dh2.8 billion in construction contracts during the period, while development revenue jumped 38 per cent year-on-year, underscoring its continued investment in long-term growth.

Net operating profit after tax rose 25 per cent to Dh1.8 billion, while revenue increased 1 per cent to Dh17.5 billion, the company said on Wednesday.

The stronger earnings growth reflected a greater contribution from higher-margin development, shopping malls, cinemas and digital businesses.

The results came despite a more challenging operating environment in the second quarter, including the impact of the regional conflict, Majid Al Futtaim said.

The group’s development business remained a key growth driver, with revenue rising 38 per cent year-on-year. Its development pipeline exceeds Dh100 billion, with Dh2.8 billion in construction contracts awarded to date.

Among the projects is an Dh62 billion agreement with Dubai South to develop a 22-million-square-foot mixed-use community. Construction is also progressing at Ghaf Woods and the Mall of the Emirates redevelopment.

Majid Al Futtaim has also partnered with Midar on a mixed-use development in Cairo, Egypt.

The group broke ground during the period on JUNCTION, a mixed-use business park in West Cairo. The first phase forms part of an investment exceeding EGP20 billion, aimed at supporting the district’s development as a commercial hub.

Fadel Abdulbaqi Al Ali, Chairman of the Board of Majid Al Futtaim Holding, said the company remained focused on disciplined capital allocation.

“Majid Al Futtaim’s strength is rooted in disciplined stewardship, prudent capital allocation and a long-term commitment to creating enduring value,” he said.

“We continue to foster a culture that looks ahead, strengthening customer experiences, deepening partner relationships and investing ahead of evolving expectations to ensure we remain well positioned to prosper over the long term.”

Majid Al Futtaim said earnings grew faster than revenue in the first half, reflecting a shift towards businesses with higher margins.

Ahmed Galal Ismail, CEO of Majid Al Futtaim Holding, said the results reflected the contribution of multiple businesses across its 14 markets.

“These results show the dynamism of Majid Al Futtaim’s diversified and integrated portfolio in practice,” Ismail said.

“Across our 14 markets, the operational strength of our businesses is reflected in the contribution of multiple growth engines, from development and destinations to digital platforms and customer businesses, while disciplined execution continues to strengthen profitability.”

The group serves more than 600 million customers annually through its portfolio of shopping malls, communities, retail, entertainment, lifestyle and digital businesses.

Retail was one of the weaker parts of the business during the period, with revenue falling 6 per cent year-on-year, mainly because of non-food categories.

Majid Al Futtaim said the decline reflected more challenging consumer conditions, particularly in the UAE, as well as actions taken as part of the business’s ongoing transformation.

The group said those measures had created a near-term impact as it worked to position the retail business for sustainable and profitable growth.

Markets outside the GCC were more resilient, with revenue rising 4%, supported particularly by Egypt and Kenya.

Retail digital revenue increased 11 per cent to Dh1.8 billion, while Precision Media revenue surged 89 per cent to Dh75 million.

The group’s Asset Management business benefited from resilient customer demand, leasing activity and tenant performance in its malls.

Mall revenue rose 12 per cent year-on-year, helping offset softer tourism demand in the hotel business.

Net revenue from the portfolio increased 4 per cent to Dh2.3 billion.

Cinemas also performed positively, with revenue up 3 per cent year-on-year during the first half.

Majid Al Futtaim said its Entertainment business was focusing on experiences combining food, entertainment and leisure in response to changing customer preferences.

Digital businesses continued to grow across the group.

Revenue increased 12 per cent in Entertainment, 11 per cent in Retail and 9 per cent in Lifestyle on a year-on-year basis.

Lifestyle revenue rose 5 per cent, while digital revenue increased 9%.

The business opened five stores during the period, including the first international location for US fashion and lifestyle brand Pacsun, and secured seven further store openings across its Lifestyle portfolio.

The group also expanded its retail mix through tenant partnerships, including with Alshaya Group, which brought brands including Primark and Ulta Beauty to its destinations.

Majid Al Futtaim ended the first half with Dh13.2 billion in net borrowings.

The group said cash and available committed credit lines covered more than two and a half years of net financing needs, providing flexibility to meet investment commitments.

Total assets stood at approximately Dh73 billion, up 4 per cent year-on-year. The company said its balance sheet allowed it to continue allocating capital selectively while maintaining financial resilience.

Majid Al Futtaim said it would continue investing selectively in physical and digital capabilities, with data and AI, SHARE, fintech, e-commerce and Precision Media expected to play a greater role in improving productivity and strengthening customer relationships.

Ismail said the group would continue investing across its destinations, platforms and technologies.

“We will keep building on that momentum, connecting our businesses more closely and investing in the destinations, platforms and technologies that will unlock new avenues for growth and shape the next chapter of Majid Al Futtaim,” he said.

The group said it remained confident in the long-term fundamentals of the UAE, Saudi Arabia, Egypt and the wider Middle East.