- MAF patriarch died in 2021
- New board appointed
- Assets worth around $19bn
The Majid Al Futtaim (MAF) Holding Group, a cornerstone of Dubai’s economy, has recently found itself under new management as the Government of Dubai has stepped in to take control. This intervention is not merely a routine change; it signifies a strategic effort to navigate a longstanding family succession battle that follows the death of the company’s patriarch in 2021.
Founded in 1992, MAF has evolved into one of the largest privately held companies in the Gulf region, with assets totaling approximately $19 billion spread across 16 countries. Their operations span multiple sectors, including retail, hospitality, real estate, and entertainment, establishing MAF as a significant player in the regional economy.
One of MAF’s most recognizable achievements is its ownership of the Mall of the Emirates, a landmark shopping destination that has become synonymous with luxury and leisure in Dubai. Additionally, MAF holds the regional rights for major brands such as Carrefour, Lego, and the American lifestyle brand Hollister, demonstrating its broad influence across various consumer segments. With a workforce of about 45,000 employees, MAF’s role in providing jobs and fostering economic growth in the region cannot be understated.
The governance restructuring comes as a direct response to the complexities introduced by the passing of founder Majid Al Futtaim. A special judicial committee—established at the request of the ten heirs—has redefined the governance framework of the parent company. This move points to an urgent need for clarity and stability amid mounting concerns over internal divisions within the family and the long-term direction of the business.
Corporate succession is a crucial issue in the Gulf region, with an estimated 80 percent of non-oil GDP driven by family-owned businesses. Firms such as MAF, Olayan, and Al Zayani in Saudi Arabia often find themselves in multi-generational transitions that can be fraught with challenges. Informal and delayed succession planning is common, and this has significant implications for the stability and growth of these influential enterprises.
The newly reconstituted board of MAF Capital reflects a balanced approach, featuring five government appointees alongside four family representatives—a decision likely designed to bridge the gap between tradition and modern governance. Essa Kazim, the governor of the Dubai International Financial Centre, will oversee this transitional committee, while Fadel al-Ali, chairman of the Dubai Financial Services Authority, assumes the role of chair for the new board, as reported by the Financial Times.
In a statement to the FT, MAF emphasized that these governance changes aim to align with the long-term interests of the group, reassuring stakeholders that it remains a privately owned and independently operated Emirati company with a clear strategic vision. However, this overhaul comes at a pivotal time, as MAF has reported a slight decline in earnings for 2024, with total revenue falling 2 percent to AED 33.9 billion (approximately $9.2 billion). The company attributed this dip to lower retail revenues and external factors such as an increased tax burden and currency devaluation in key international markets.
