New board appointed
Assets worth around $19bn
The Government of Dubai has stepped in to take control of Majid Al Futtaim (MAF) Holding, a pillar of Dubai’s consumer economy.
A new board has been appointed to lead the group in an emirate-backed effort to resolve a long-running family succession battle.
Founded in 1992, MAF is one of the largest closely held companies in the Gulf. It operates across retail, hospitality, real estate and entertainment with up to $19 billion of assets in 16 countries including the UAE, Saudi Arabia and Egypt.
It owns Dubai’s Mall of the Emirates, and holds regional rights for French hypermarket Carrefour, as well as Lego and US lifestyle brand Hollister. It employs about 45,000 people.
A special judicial committee, established at the request of the 10 heirs of founder Majid Al Futtaim, has restructured the governance of the group’s parent company, according to the Financial Times.
The move comes three years after the death of the company’s patriarch, and highlights growing concerns over internal divisions and future control of the business that last year generated $9.2 billion of revenue.
Corporate succession in the Gulf is a critical issue shaping the long-term stability of the region’s private sector. Over 80 percent of non-oil gross domestic product is driven by family-owned businesses.
These companies, such as MAF or Olayan and Al Zayani in Saudi Arabia, are often multi-generational, sprawling across many sectors including retail, construction and real estate. Succession planning tends to be informal and often delayed.
The MAF governance shake-up will see a new board formed at MAF Capital, comprising five government appointees and four family representatives.
Essa Kazim, governor of the Dubai International Financial Centre, will lead the committee overseeing the transition, while Fadel al-Ali, chairman of the Dubai Financial Services Authority, will chair the reconstituted board, the FT reported.
In a statement to the FT, MAF said the changes “reflect a shareholder-led effort to evolve governance in line with the long-term interests of the group”, adding that the company “remains a privately owned and independently operated Emirati company with a clear strategy, strong performance and stable governance”.
The governance overhaul comes as MAF reported weaker earnings in 2024.
Total revenue fell 2 percent to AED33.9 billion ($9.2 billion), while profit dropped 6 percent to AED2.5 billion, with the company citing lower retail revenues, a higher tax burden and currency devaluation in its biggest international markets.
