Majid Al Futtaim Posts Record Dh2.5B H1 Earnings, Boosts Dubai Property Pipeline
Gulf News
Majid Al Futtaim achieves record Dh2.5B EBITDA in H1 2026, advancing Dh100B+ Dubai and regional real estate developments amid diverse business growth.
Majid Al Futtaim’s Stellar H1 2026 Financial Performance
Majid Al Futtaim has reported an impressive first-half EBITDA of Dh2.5 billion for 2026, marking an 11% year-on-year increase. This growth highlights the Dubai-based conglomerate’s intensified investment efforts throughout its extensive development pipeline valued at over Dh100 billion.
The group awarded Dh2.8 billion in construction contracts within the first six months, underlining its focus on long-term expansion. Their development revenue surged 38% year-over-year, confirming real estate as a primary growth driver.
Despite a challenging operating environment in Q2, influenced partly by regional conflicts, the company’s net operating profit after tax climbed 25% to Dh1.8 billion, and overall revenue edged up 1% to Dh17.5 billion.
Key Projects Driving Development Growth
Central to the surge is a Dh62 billion partnership with Dubai South to create a sprawling 22 million square feet mixed-use community. At the same time, ongoing projects such as the Ghaf Woods development and the Mall of the Emirates redevelopment are progressing steadily.
Beyond the UAE, Majid Al Futtaim has expanded its presence by partnering with Midar on a mixed-use Cairo development. The group broke ground on JUNCTION, a mixed-use business park in West Cairo. This investment exceeds EGP20 billion and aims to establish the district as a vital commercial hub.
Business Segments Fueling Profitability
Earnings growth outpaced revenue, reflecting a strategic shift toward higher-margin sectors including property development, shopping malls, cinemas, and digital businesses. Mall revenues rose 12%, offsetting softer hotel tourism demand, while cinema revenues improved by 3%.
Retail revenues dipped 6%, primarily due to weaker consumer spending in non-food categories and transformation efforts influencing short-term performance. However, international markets such as Egypt and Kenya showed resilience, with retail revenues increasing by 4% outside the GCC.
Digital revenue streams also flourished, with retail digital revenue rising 11% to Dh1.8 billion and Precision Media revenue soaring 89% to Dh75 million. Lifestyle revenue increased by 5%, supported by new store openings and partnerships, including expanding brands like Primark and Ulta Beauty via collaborations with Alshaya Group.
Financial Stability and Future Outlook
Majid Al Futtaim closed H1 with net borrowings of Dh13.2 billion but maintains robust liquidity, with cash and committed credit lines covering more than two and a half years of net financing needs. Total assets grew 4% year-on-year to approximately Dh73 billion, enabling selective capital allocation and financial resilience.
Chairman Fadel Abdulbaqi Al Ali emphasized disciplined capital stewardship and value creation. CEO Ahmed Galal Ismail highlighted the strength of their diversified portfolio across 14 markets, driven by integrated growth engines in development and digital platforms.
The group aims to further invest in technology and data-driven capabilities such as AI, fintech, e-commerce, and Precision Media to enhance productivity and customer engagement.
"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," Ismail noted.
Implications for Real Estate Agents
Majid Al Futtaim’s record financial performance and significant real estate development pipeline confirm strong market confidence in Dubai’s property sector. Agents should watch for new opportunities in large-scale mixed-use communities and mall redevelopments, especially in Dubai South and strategic international markets like Egypt. The group’s focus on integrating retail, entertainment, and digital platforms suggests a shift toward experiential real estate offerings, providing agents with diverse avenues to serve evolving buyer and tenant preferences.
Based on reporting from Gulf News. Summary and analysis by Propilot AI.
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