Dubai: Majid Al Futtaim has reported its strongest first-half EBITDA on record, with property development, shopping malls, cinemas and digital operations helping offset weaker retail performance during the first six months of 2026.
The Dubai-headquartered group said on September 9 that EBITDA reached Dh2.5 billion in H1 2026, an 11 per cent increase from a year earlier. Net operating profit after tax rose 25 per cent to Dh1.8 billion, while revenue increased 1 per cent to Dh17.5 billion.
The earnings growth was considerably faster than revenue growth, reflecting a larger contribution from businesses with higher margins, particularly real estate development and destination assets.
Dh100 billion development pipeline
Property development remains one of Majid Al Futtaim’s most important growth engines.
Development revenue increased 38 per cent year-on-year in the first half, while the group said its development pipeline now exceeds Dh100 billion. It awarded Dh2.8 billion worth of construction contracts during the period.
One of the largest projects within that pipeline is the Dh62 billion mixed-use master community being developed with Dubai South.
The agreement, announced in May, covers a 22-million-square-foot development combining residential, retail and lifestyle components. Dubai South and Majid Al Futtaim said the project is intended to serve the area’s expanding population and create a new integrated destination within the wider master development.
Construction activity is also progressing at Ghaf Woods in Dubai and as part of the redevelopment of Mall of the Emirates.
Majid Al Futtaim awarded a Dh2 billion construction contract in June for Capria East and Capria West at Ghaf Woods, including Maravelle Residences. The company has also awarded a separate contract worth more than Dh700 million for the main works at DISTRIKT Ghaf Woods.
The group’s development expansion extends beyond the UAE. In June, Majid Al Futtaim announced a partnership with MIDAR for a $3.1 billion mixed-use development in New Cairo, while it also broke ground on JUNCTION, a mixed-use business park in West Cairo.
Retail faces a tougher first half
Not every part of the portfolio expanded at the same pace.
Retail revenue declined 6 per cent year-on-year, with the company pointing to weaker non-food categories and more challenging consumer conditions, particularly in the UAE. Majid Al Futtaim also said the decline reflected actions being taken to transform the retail business for longer-term growth.
Performance outside the GCC was comparatively more resilient, with retail revenue in those markets rising 4 per cent, supported by Egypt and Kenya.
Digital retail continued to provide a counterweight. Digital retail revenue rose 11 per cent to Dh1.8 billion, while Precision Media revenue increased sharply to Dh75 million.
Shopping malls and cinemas provide support
The group’s asset-management activities delivered a stronger performance, helped by customer demand, leasing activity and tenant performance across its shopping-mall portfolio.
Mall revenue increased 12 per cent year-on-year, helping compensate for softer hotel demand during the second quarter. Net revenue from the asset-management portfolio rose 4 per cent to Dh2.3 billion. Cinema revenue also grew 3 per cent during the first half.
Majid Al Futtaim’s wider digital ecosystem also continued to expand. Revenue increased 12 per cent in Entertainment, 11 per cent in Retail and 9 per cent in Lifestyle, according to the company.
The group opened five stores during H1, including the first international store for US fashion and lifestyle brand Pacsun, and secured seven additional openings across its Lifestyle portfolio.
Financial position remains a focus
Majid Al Futtaim ended the first half with approximately Dh73 billion in total assets, up 4 per cent year-on-year, and Dh13.2 billion in net borrowings. The company said cash and available committed credit lines covered more than two and a half years of net financing requirements.
The financial position gives the group room to continue investing in property, retail and digital capabilities while maintaining its stated focus on disciplined capital allocation.
The company also reported that its SHARE loyalty programme reached around 14 million members across the region following its launch in Saudi Arabia. More than 190,000 customers were transacting daily through the programme, while more than 140,000 SHARE credit cards had been issued.
For the UAE property market, the scale of the development programme is particularly significant. Majid Al Futtaim’s current projects span residential communities, mixed-use destinations and major retail assets, positioning the company to benefit from continued demand for integrated developments in Dubai and other regional markets.
What were Majid Al Futtaim’s H1 2026 results?
Majid Al Futtaim reported Dh17.5 billion in revenue, up 1 per cent year-on-year, and record EBITDA of Dh2.5 billion, up 11 per cent. Net operating profit after tax increased 25 per cent to Dh1.8 billion.
How large is Majid Al Futtaim’s development pipeline?
The group’s development pipeline exceeds Dh100 billion, with Dh2.8 billion in construction contracts awarded during the first half of 2026.
What is Majid Al Futtaim developing with Dubai South?
Majid Al Futtaim and Dubai South are developing a Dh62 billion mixed-use master community covering 22 million square feet, with residential, retail and lifestyle components.
How did Majid Al Futtaim’s property development business perform?
Development revenue increased 38 per cent year-on-year during H1 2026, making development one of the group’s major growth drivers.
Did Majid Al Futtaim’s retail business grow?
No. Retail revenue declined 6 per cent year-on-year, with the company citing weaker non-food categories and more challenging consumer conditions, particularly in the UAE.
How did Majid Al Futtaim’s shopping malls perform?
Mall revenue increased 12 per cent year-on-year in H1 2026, supported by customer demand, leasing activity and tenant performance.
What is happening at Ghaf Woods?
Construction is progressing at Ghaf Woods. Majid Al Futtaim awarded a Dh2 billion contract in June 2026 for Capria East and Capria West, including Maravelle Residences.
How large is Majid Al Futtaim’s SHARE loyalty programme?
SHARE reached approximately 14 million members across the region following its Saudi Arabia launch, according to the company.
