Dubai’s Majid Al Futtaim to focus on expansion in Eastern and Southern African countries
Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa, announced operational and financial results of the full year 2015.The company prepares to implement further expansion across the Mena.
The company raised its revenues 8% to AED 27.3 billion ($7,4 billion) while group EBITDA increased by 6%, reaching AED 3.8 billion($ 1,03 billion). Performance was largely driven by continued investment in core businesses across Dubai and increased development activity in Egypt and Oman.
Alain Bejjani, Chief Executive Officer of Majid Al Futtaim – Holding, said: “Majid Al Futtaim’s 2015 financial performance has demonstrated the strength and resilience of our business against a backdrop of a regional economic slowdown. We’ve achieved this by continually listening to our customers and evolving our offerings in line with their changing needs. During the past year, we enhanced our offering in Dubai, successfully completing a number of retail and leisure projects, including the 36,000 m2 expansion at Mall of the Emirates. The new expansion introduced a more luxurious VOX Cinemas experience, popular international retail brands, including Apple and Abercrombie & Fitch, and a range of new restaurants and cafes. We will continue to leverage our local experience and operational excellence across the region, in line with plans to create more great moments for more customers in more countries. With several large scale developments currently in the pipeline in Saudi Arabia, Egypt, and Africa, we are well positioned to fully leverage the significant growth potential of the Middle East and North/East Africa region.”
Majid Al Futtaim Properties expanded its portfolio in 2015, reporting an increase in revenue of 7% to AED 4 billion, while EBITDA rose by 9% to AED 2.6 billion, contributing about 65% of the group’s EBITDA. Occupancy across all shopping malls remained strong at 98%. With completed expansions at Mall of the Emirates and City Centre Muscat and the opening of City Centre Me’aisem, the company welcomed 171 million customers throughout 2015, a 3% increase, as compared to full year 2014. Majid Al Futtaim’s hotels experienced a decline in revenue per available room (RevPAR) of about 7%, despite outperforming the broader hospitality market which dropped by almost 10%. In 2015, the company completed the refurbishment of Kempinski – Mall of the Emirates and the opening of Hilton Garden Inn Dubai Mall of the Emirates.
In line with its long-term commitment to the wider region, Majid Al Futtaim has established plans to expand in Africa. The company will initially focus on development in Eastern and Southern African nations, with Kenya set to be the first destination for Carrefour in 2016.