Ahmed Ismail, CEO of Majid Al Futtaim Holding Company, said in an interview with Al Arabiya that there are 3 main factors that contributed to supporting the group’s profit growth in the first half of 2023, by 74% to 1.7 billion dirhams.
Ismail explained that the factors supporting profitability consisted of focusing on the most profitable activities, including the activity of commercial and residential centers, secondly, the efficiency of operation and performance in general for all sectors, and thirdly, the good economic situation in the Gulf region.
He added that the real estate sector achieved record performance during the period and includes malls, commercial centers, hotels and the residential sector, as well as retail trade (Carrefour), despite the change in the exchange rate in a number of our foreign markets such as Egypt, Pakistan and Kenya.
“The entertainment sector is also witnessing a positive recovery after the Corona period, and finally the fashion trade, which is one of the best performing sectors in the first half of 2023, with a growth of 30%,” according to Ismail.
He continued: “We work in about 15 countries, and the change in the exchange rate in Egypt, Kenya, Pakistan and other foreign markets was reflected in the profit growth rate of the retail sector, but the company succeeded in absorbing its impact, achieving revenue growth in dirhams, and achieving a jump in profits.”
With regard to green sukuk, the CEO of the company said, “Majid Al Futtaim” implemented the fourth green issuance in the past quarter, at a value of $ 500 million, which is a proactive step to refinance the sukuk due next year, at a value of $ 800 million, adding: “The issuance witnessed coverage by about 6 times, and we obtained a pricing margin that is the lowest in the history of the region.”
And he indicated that the company does not have large dues at the present time, but we are working proactively to avoid an increase in interest.
He stated that Majid Al Futtaim’s maintenance of a credit rating of “BBB” contributes to financing all its needs from the global market at interest rates that are much lower than similar companies.
He pointed out that the company does not have any plans for a public offering at the present time, adding: “We rely on self-financing and our ability to benefit from the strong credit rating to finance our projects from abroad.”
And he stated that there is a rebalancing of consumption patterns, as we are witnessing a growth in e-commerce at a slower pace than the Corona period, which is reflected in our results, as it achieved a growth of 13%.
“The emergence of a strong consumer pattern after the Corona period, which is the focus on experience, which we are witnessing in the malls affiliated with the group,” according to Ismail.
Majid Al Futtaim’s semi-annual profits increased by 74% to 1.7 billion dirhams.
The company stated that the results received support from an increase in the demand for visiting shopping centers by 12% during the first half of this year, driven by the Mall of the Emirates, which recorded the highest turnout ever during the period.
