Majid Al Futtaim Group Sets Eyes on Flourishing Saudi Market

RIYADH: The Majid Al Futtaim Group, a colossal retail entity based in Dubai, is setting its sights on Saudi Arabia as the next big frontier for business development. CEO Ahmed Jalal Ismail is confident about the Kingdom's potential for the Group.

In a recent conversation with Bloomberg regarding the company’s financial trajectory, Ismail highlighted Saudi Arabia's thriving business scene as a prime contender for the Group's expansion initiatives.

Ismail remarked, “Saudi Arabia is teeming with growth prospects. We’re particularly eager about opportunities across retail, entertainment, and energy.”

He further elaborated, “There’s evident potential in physical retail spaces. Moreover, the increasing digital appetite for our integrated offerings is noteworthy. The enthusiasm in the entertainment domain, especially with our cinema and family entertainment propositions, is palpable.”

Shedding light on the energy sector, Ismail mentioned the persistent demand for facility and energy management. He indicated, “Our Enova business continues to cater to this rising demand efficiently.”

The Group's ambitious expansion designs in Saudi Arabia are bolstered by the country's formidable economic resilience in the face of global adversities.

As per the insights from the July quarterly economic review by the Ministry of Economy and Planning, the first quarter we witnessed Saudi Arabia registering impressive growth metrics in its oil and non-oil sectors, which boosted its overall gross domestic product.

Recognized as a paramount force in the realms of shopping malls, retail, and leisure spanning the Middle East, Africa, and Central Asia, Majid Al Futtaim Group’s recent financials showcased an impressive 74% surge in yearly net profit for the initial half of 2023.

This financial uptick is attributed to the sturdy economic climate of the UAE, further solidifying the Group’s optimistic future perspective.

The Group saw its revenues climb by 5%, amounting to 18.9 billion dirhams during the first semester of 2023. Speaking of the earnings before deductions, it marked a 13% increase, tallying 2.1 billion dirhams for the said period.

Ismail reflected, “The year commenced on a positive note, with a 5% growth in revenue, even when faced with currency fluctuations in several of our operational markets. It's commendable to witness our profitability pacing faster than our revenue, a testament to the booming UAE economy, our primary market.

Similar to the growth trajectory of Majid Al Futtaim Group, Saudi Arabia has unparalleled business opportunities. The Kingdom is fast emerging as a nexus of innovation and economic development, offering fertile ground for businesses looking to expand their horizons. At R Consultancy Group, we have the expertise and resources to help you venture into this flourishing market. Don't hesitate to reach out if you're contemplating a strategic move to Saudi Arabia.

Let us be the catalyst that propels your business to new heights in the Saudi market. Your success story awaits, and we're eager to be a part of it.