Majid Al Futtaim to restructure its board: Report

Dubai: A special judicial committee in Dubai has reportedly asked the parent company of one of the region's retail giants to restructure its board, trying to end years of turmoil after the death of its billionaire founder and secure the future of the owner of the Mall of the Emirates.

The changes at Majid Al Futtaim come as Dubai tries to guide the family-run businesses that powered the emirate’s growth through generational change. Authorities also likely want to avoid any further infighting that could slow down the growth of a firm that long has made hiring Emiratis a key goal.

The Financial Times first reported on the changes to Majid Al Futtaim's board, saying it came at the orders of a government-established special judicial committee.

In 2022, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, established a special judicial committee to look after the estate of Majid Al Futtaim's founder — also named Majid Al Futtaim — following his death in 2021.

Responding to questions from The Associated Press, the company appeared to acknowledge the changes at Majid Al Futtaim Capital, which oversees its group of companies.

The changes “reflect a shareholder-led effort to evolve governance in line with the long-term interests of the Group”, the company said in a statement. “These changes do not affect the operations or governance of Majid Al Futtaim Holding. Majid Al Futtaim continues to operate under an independent board and strong oversight.”

The Financial Times described Majid Al Futtaim's parent company as now being overseen by five government and four family representatives.

Majid Al Futtaim is a mainstay of the local consumer economy. It’s also a giant in the broader Gulf Arab region, owning and operating prominent hotels, entertainment venues and shopping malls. Its portfolio includes the Mall of the Emirates, a major tourist draw in Dubai that houses the Middle East’s first-ever indoor ski slope. It also runs regional franchises for global brands, including Lego.

Majid Al Futtaim’s revenues last year topped $9 billion.