Majid Al Futtaim Holding reported a substantial increase in profit for 2025, attributing the positive results to growth across its shopping malls, hotels and entertainment divisions.
The firm noted a 41% YoY rise in net profit to AED 3.6B ($980M), alongside a 6% increase in revenues, reaching AED 36B.
Tourism, Real Estate Boom
Revenue from the shopping malls and hotels segment grew 6% to AED 4.8B, while earnings from real estate development surged by 33% to AED 5.8B.
The company’s e-commerce operations saw a notable 20% increase in revenue, and entertainment revenues rose by 9%, buoyed by cinema performances.
Notably, revenues within the UAE experienced an 11% annual growth, exceeding AED 22B.
Cash Flow Up, Debt Down
EBITDA rose by 10% reached AED 5.1B, surpassing AED 5B for the first time.
The company generated AED 3.5B in free cash flow, marking a 25% increase on FY24.
Net debt declined by 15% since December 2024, standing at AED 11.9B.
Ahmed Galal Ismail, CEO of Al Futtaim Holding, said that the “financial position is the strongest it has been in a decade… our development pipeline is diversified across asset classes and our core markets in the UAE, Saudi Arabia, and Egypt, and includes significant reinvestment in flagship assets, most notably the AED 5 billion transformation of Mall of the Emirates.”
Despite these positive results, the firm did not address the recent missile and drone attacks in the UAE.
Analysts indicate that Gulf retailers may face challenges ahead, with concerns over supply chain disruptions and potential declines in tourism spending during peak season before the Gulf summer cool off in tourist revenues.
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