Majid Al Futtaim H1 EBITDA Hits Record $680.7 Million

DUBAI, UAE: Majid Al Futtaim reported record first-half EBITDA of $680.7 million (AED2.5 billion) in H1 2026, up 11% year-on-year, as the Dubai-based group continued investing across a development pipeline valued at more than $27.23 billion (AED100 billion).

The group awarded $762.4 million (AED2.8 billion) in construction contracts during the period, while development revenue increased 38% year-on-year.

Net operating profit after tax rose 25% to $490.1 million (AED1.8 billion), while revenue increased 1% to $4.77 billion (AED17.5 billion).

Majid Al Futtaim said the stronger earnings performance reflected increased contributions from higher-margin development, shopping malls, cinemas and digital businesses, despite a more challenging operating environment during the second quarter.

Development Pipeline Exceeds $27 Billion

Development remained a key growth driver during the first half, with revenue rising 38% year-on-year.

Majid Al Futtaim’s development pipeline exceeds $27.23 billion (AED100 billion), with $762.4 million (AED2.8 billion) in construction contracts awarded to date.

Among its major projects is a $16.88 billion (AED62 billion) agreement with Dubai South to develop a 22-million-square-foot mixed-use community.

Construction is also progressing at Ghaf Woods and the Mall of the Emirates redevelopment.

In Egypt, Majid Al Futtaim has partnered with Midar on a mixed-use development in Cairo and broke ground during the period on JUNCTION, a mixed-use business park in West Cairo. The first phase forms part of an investment exceeding approximately $390.6 million (EGP20 billion).

Fadel Abdulbaqi Al Ali, Chairman of the Board of Majid Al Futtaim Holding, said: “Majid Al Futtaim’s strength is rooted in disciplined stewardship, prudent capital allocation and a long-term commitment to creating enduring value,”

“We continue to foster a culture that looks ahead, strengthening customer experiences, deepening partner relationships and investing ahead of evolving expectations to ensure we remain well positioned to prosper over the long term.”

Profit Growth Outpaces Revenue

Majid Al Futtaim said earnings grew faster than revenue during the first half, supported by a greater contribution from higher-margin businesses.

Ahmed Galal Ismail, CEO of Majid Al Futtaim Holding, said: “These results show the dynamism of Majid Al Futtaim’s diversified and integrated portfolio in practice,”

“Across our 14 markets, the operational strength of our businesses is reflected in the contribution of multiple growth engines, from development and destinations to digital platforms and customer businesses, while disciplined execution continues to strengthen profitability.”

The group serves more than 600 million customers annually across its portfolio of shopping malls, communities, retail, entertainment, lifestyle and digital businesses.

Retail Revenue Declines 6%

Retail revenue declined 6% year-on-year, primarily due to weaker performance in non-food categories.

Majid Al Futtaim attributed the decline to more challenging consumer conditions, particularly in the UAE, alongside measures implemented as part of the ongoing transformation of the retail business.

Markets outside the GCC proved more resilient, with revenue increasing 4%, supported particularly by Egypt and Kenya.

Retail digital revenue rose 11% to $490.1 million (AED1.8 billion), while Precision Media revenue increased 89% to $20.4 million (AED75 million).

Mall Revenue Rises 12%

Majid Al Futtaim’s Asset Management business benefited from resilient customer demand, leasing activity and tenant performance across its shopping mall portfolio.

Mall revenue increased 12% year-on-year, helping offset softer tourism demand across the hotel business.

Net revenue from the portfolio rose 4% to $626.3 million (AED2.3 billion).

Cinema revenue also increased 3% year-on-year during the first half, while the Entertainment business continued to focus on concepts combining food, entertainment and leisure.

Digital Businesses Continue to Expand

Digital revenue increased across several areas of the group, rising 12% in Entertainment, 11% in Retail and 9% in Lifestyle on a year-on-year basis.

Lifestyle revenue increased 5%, while digital revenue within the business rose 9%.

Five stores opened during the period, including the first international location for US fashion and lifestyle brand Pacsun, while seven additional store openings were secured across the Lifestyle portfolio.

Majid Al Futtaim also expanded its tenant partnerships, including with Alshaya Group, which brought brands including Primark and Ulta Beauty to its destinations.

The group ended the first half with $3.59 billion (AED13.2 billion) in net borrowings.

Cash and available committed credit lines covered more than two and a half years of net financing needs, according to the company.

Total assets stood at approximately $19.88 billion (AED73 billion), up 4% year-on-year.

Investment in AI and Digital Platforms

Majid Al Futtaim said it will continue investing selectively in physical and digital capabilities, with data and AI, SHARE, fintech, e-commerce and Precision Media expected to play a greater role in improving productivity and strengthening customer relationships.

Ismail said: “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,”

The group said it remains confident in the long-term fundamentals of the UAE, Saudi Arabia, Egypt and the wider Middle East.