Emirati holding company, Majid Al Futtaim’s net profit declines in 2022 by two percent or 2.4 billion dirhams, amidst global economic challenges; inflation, energy shortages and the slow global economic growth.
Despite the loss in profits, the company’s revenues increased by 12 percent or 36.3 billion dirhams. Revenues of Majid Al Futtaim’s real estate company inclined by 43 percent last year, or 5.8 billion dirhams.
Portfolio of the company’s hotels increased by 48 percent, or 671 million dirhams, boosted by Dubai’s Expo 2020, Saudi Arabia’s increased demand during holiday seasons and Qatar’s World Cup.
The company’s asset value reached 66 billion dirhams in late 2022, with a 9 percent increase, while net debt was steady at 14.2 billion dirhams.
The company signed for a second loan related to sustainability in September worth $1.25 billion, in order to achieve the company’s goals in environmental, social and corporate governance.
Majid Al Futtaim retail’s sales had an incline in revenues by seven percent, or 28 billion dirhams in 2022, as it started regaining customer’s trust, along with the global precautionary measures lift, and tourism and travelling making a comeback.
“The company was able to achieve new growth rates last year, despite the global constant economic challenges, and that is because of the company’s diverse activity portfolio, and the vitality and flexibility of the Emirati’s economy,” said Ahmed Galal Ismail, Majid Al Futtaim’s CEO.
The company is set to implement more expansions in fast-growing markets like the Egyptian and Saudi markets, as well as its local Emirati market.
