Majid Al Futtaim H1 profits fall 25% to AED 1.08B

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Majid Al Futtaim Group, which operates Mall of the Emirates and City Centre and is one of Dubai’s largest retail companies, reported a drop in profits to AED 1.08 billion in H1 2026, compared to AED 1.45 billion in the same period a year earlier, as shown in the table below:

This was also due to a rise in net impairment losses on financial assets, which increased to AED 26 million in the current period from AED 6 million in H1 2025, in addition to a 4% increase in net finance costs to AED 407 million in H1 2026, compared to AED 392 million in the same period last year.

Business unit performance

Majid Al Futtaim Properties: The group's real estate business continued to deliver strong results in H1 2026, as net revenue from the asset management portfolio rose 4% YoY to AED 2.34 billion, while EBITDA increased 9% to AED 1.88 billion.

Shopping malls contributed to this performance, with rental income up 12% to AED 2.06 billion, supported by sustained demand, strong leasing activity, and robust tenant performance, while hotel business revenue declined to AED 180 million due to weaker tourism demand in Q2.

Visitor traffic declined 3%, and the average occupancy rate at shopping malls reached 97%.

In real estate development, the real estate development and residential communities portfolio recorded revenue of AED 2.76 billion, up 38% YoY, with EBITDA of AED 697 million, driven by continued strong demand for the "Ghaf Woods" project, which saw 300 units sold during the period.

As a strategic milestone in Egypt, the group broke ground on the "Junction" mixed-use business complex in West Cairo, as part of investments exceeding EGP 20 billion. The group also entered a partnership with "Medar" to develop a mixed-use project in East Cairo.

Majid Al Futtaim Retail: The digital retail business at Majid Al Futtaim continued to deliver strong performance in H1 2026, with revenue rising 11% to AED 1.8 billion, representing about 17% of total retail revenue.

This momentum also reflects the sustained growth of "Presigen Media" in digital advertising powered by artificial intelligence, with revenue up 89% YoY to AED 75 million.

Retail segment revenue reached AED 10.79 billion, down 6% year-on-year, mainly due to lower non-food product categories amid challenges impacting consumer spending, especially in the UAE, as well as the ongoing transformation program in the segment.

By contrast, markets outside the GCC performed with greater resilience, as revenue rose 4% year-on-year, driven by strong results in Egypt and Kenya.

Lifestyle segment: Majid Al Futtaim’s lifestyle segment revenue grew 5% to AED 705 million, while EBITDA shifted to a loss of AED 34 million from a profit of AED 20 million in H1 2025.

The segment continued to strengthen “Majid Al Futtaim’s” position as a trusted regional partner for leading global brands such as “lululemon”, “LEGO”, “Crate & Barrel”, and “Shiseido”. The group also opened five new stores during the first half of the year, including the first “PacSun” fashion and lifestyle brand store outside the United States.

Leisure segment: Majid Al Futtaim’s leisure business revenue rose 1% to AED 903 million, while EBITDA declined 5% to AED 81 million compared to the same period last year.

VOX Cinemas’ revenue grew 3% YoY, with attendance rising 2%. The group also launched "Soko", a new destination combining interactive and competitive games with dining.

Projects and investments

During H1 2026, the group progressed with the Mall of the Emirates redevelopment project and awarded construction contracts worth AED 2.8 billion in the period. Its projects also include a AED 62 billion agreement with Dubai South to develop an integrated, multi-use community.

Sustainability and awards

Majid Al Futtaim continued to deliver notable achievements in sustainability during H1 2026, becoming the first group in the region to receive globally recognized sustainability certifications across 23 wholly owned shopping malls, including 18 LEED Platinum certifications.

VOX Cinemas at Mall of the Emirates became the first cinema in the UAE to receive the "Wusool" accessibility certification under the Dubai Universal Design Code. The group also received the "Platinum Impact Seal" from the National CSR Fund in the UAE, in the large companies category.

Financing

Majid Al Futtaim maintained strong financial discipline in H1 2026, with net borrowings amounting to AED 13.2 billion. The company continues to uphold a balanced debt profile and robust cash liquidity, along with available credit facilities, providing funding coverage for its net financing needs for more than two and a half years.