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Dubai-based Majid Al Futtaim, whose businesses include the mall, communities, retail and leisure sectors in the region, is continuing with its expansion plans despite lacklustre H1 revenues as a result of the pandemic.
The group reported a 3 percent decrease in H1 revenue at 17.3 billion dirhams ($4.71 billion) and 27 percent decrease in H1 EBITDA at 1.6 billion dirhams. Majid Al Futtaim retail reported a 4 percent increase in H1 revenue and 18 percent increase in EBITDA.
The company is set to implement its expansion plans in core markets during the second half of 2020 and has announced new dates for the opening of Mall of Oman and City Centre Al Zahia in Sharjah. The former is now scheduled to open its doors to customers in September 2021.
The mall will play a significant role in supporting local communities, enhancing the Sultanate's retail and entertainment offerings for both residents and tourists, and boosting the local economy by creating 3,500 jobs once opened, a statement from the company said.
Majid Al Futtaim – Retail will continue to expand its physical presence across existing markets. The company will also open three supermarkets in Uzbekistan this year, marking the first entry of an international grocery retailer into the Central Asian country. In addition, Majid Al Futtaim – Ventures will open 55 new VOX Cinemas screens in the second half of 2020.
“The pandemic has undoubtedly affected us all. Over the years, we have built and maintained a sustainable and diversified business ready to withstand the headwinds in our industries," Alain Bejjani, Chief Executive Officer of Majid Al Futtaim - Holding, said.
“While the timeline for a full-scale recovery is still uncertain, we are witnessing a slow reopening of the economy. We will do our part to rebuild consumer trust that is so crucial to revitalising the economy. To achieve this, we must adapt to changing consumer needs and continue to ensure the highest standards of health and safety, while doubling down on our efforts to strengthen the industries and markets in which we operate,” Bejjani said.
Despite weakening macroeconomic conditions, the company’s BBB credit rating and ‘stable outlook’ have been reaffirmed by Standard & Poor’s in its most recent report.
(Reporting by Seban Scaria; editing by Daniel Luiz)
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