MAF pauses Mall of Saudi to assess portfolio, continues to invest in KSA: CEO

Ahmed Ismail, CEO of the UAE's Majid Al Futtaim Group

Ahmed Ismail, CEO of the UAE's Majid Al Futtaim (MAF) Group, said that pausing some investments in Saudi Arabia has nothing to do with family disputes, stressing that the company continues “to believe in the Saudi story.”

"We are continuously reevaluating that portfolio of investments with the lens of creating sustainable long-term growth. So, we have paused some investment," Ismail said in an interview with Bloomberg TV, adding that the company continues to invest in Saudi Arabia.

When asked whether a lack of belief in Saudi Arabia or family division were behind the pause, Ismail answered, "neither", stressing that the Kingdom is a thriving opportunity and the company strongly believes in its economy.

“Across the board, we see plenty of growth opportunities in Saudi. In retail, we continue to see opportunity for physical retail expansion. Digital demand for our omnichannel offers continue to be quite robust. Entertainment is firing on all cylinders,” he said.

He noted that the entertainment sector is witnessing a distinguished period, given the significant demand for facilities and energy management; hence, the company continues to fulfill this demand.

According to data available with Argaam, MAF suspended work on its estimated SAR 6 billion Mall of Saudi project for unknown reasons.

The Mall of Saudi is located at the intersection of Al-Thumama Road and Abu Bakr Al-Siddiq Road in Al-Narjis neighborhood, north of Riyadh, with a total area of more than 866,000 sqm.

MAF had planned to start the construction work in late 2021. The group announced in June 2021 the awarding of a four-year contract to the global infrastructure consulting firm, AECOM, to provide lead consultancy services for the Mall of Saudi development within its master-planned mixed-use development, Riyadh North.

In October 2021, the group awarded the tender for management services and engineering consultancy to international company Mace to take over the management of the North of Riyadh project, including the Mall of Saudi.

In December 2021, the MAF founder passed away. Then, the group appointed a judicial committee to adjudicate potential legal disputes related to inheritance issues after the founder’s death.

Earlier this year, the group named Ahmed Ismail as CEO, replacing Alain Bejjani after eight years in the role.