Majid Al Futtaim eyes 100% growth

Majid Al Futtaim Holding officials at media briefing in Dubai on Sunday. — Supplied photo

Dubai — Majid Al Futtaim expects 100 per cent growth in its business size in the next five years, and has no plan to go for an initial public offering (IPO).

This was disclosed by Majid Al Futtaim Holding chief executive officer, Alain Bejjani, during a media briefing on Sunday. “We have no plans for an IPO for any of our subsidiaries or the overall company,” Bejjani told reporters.

The Dubai-based business conglomerate is the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (Mena) region. It has assets worth Dh45 billion and more than 1.6 billion people experienced its destinations over the past 20 years. Launched two-decades ago, it currently operates in 13 markets, and owns and operates 17 shopping malls, 11 hotels, and three mixed-use communities in the region.

“While we are proud of what we’ve accomplished over the past 20 years, we have ambitious plans for the future. Our intention is to double the size of our business in the next five years,” said Bejjani.

The growth will come from investment in existing brands like Mall of the Emirates as well as market expansion in Egypt, he explained.

Majid Al Futtaim, earlier this month, announced its plans to invest an additional $590 million, in Egypt, bringing its total investment over the next five years to 22.5 billion Egyptian pounds. Projects will include building new malls, introduction of Vox Cinemas and expanding old shopping centres in the North African country.

“We work closely with the Egyptian and UAE governments regarding our plans and we are confident about growth in the country,” the CEO said.

The Dubai-based company also has a presence in Saudi Arabia for more than seven years, and is working on expanding its presence by opening its first Magic Planet in the Kingdom in mid-2015.

Majid Al Futtaim has supported the Dubai and UAE government initiatives to promote the city and country as a global tourist destination. Through partnership with the Dubai Festivals and Retail Establishment, the company has played an instrumental role supporting major tourism-related events.

While aggressively expanding across the region, the CEO remained optimistic about further  growth in Dubai on increasing population and rising tourist numbers.

“Currently we have a 25 per cent market share in Dubai in terms of total retail leasing space and we are confident about growing further in this market,” he added. In 2014, the Dubai-based company launched a new corporate brand campaign to reinforce with customers, partners and employees the Majid Al Futtaim vision: To Create Great Moments for Everyone, Everyday. In 2015, the company will build on that campaign through a year-long series of events, promotions, activities and surprises at all its destinations to commemorate its brands’ anniversaries.

“We set out to transform the face of shopping by creating innovative new experiences that expand our world and inspire those around us,” Bejjani said.

— abdulbasit@khaleejtimes.com