RIYADH: Dubai-based retail giant Majid Al Futtaim Group views Saudi Arabia as a thriving market for future expansion, according to the company’s CEO, Ahmed Jalal Ismail.
Discussing the company’s financial performance with Bloomberg, Ismail underscored the Kingdom’s robust business environment as a promising avenue for Al Futtaim Group’s growth.
“Across the board, we see plenty of growth opportunities in Saudi,” noted Ismail.
Ismail identified Saudi Arabia’s retail, entertainment, and energy sectors as particularly enticing.
“In retail, we continue to see opportunities for physical retail expansion. Digital demand for our omnichannel offers continues to be quite robust. Entertainment is firing on all cylinders and our offer of cinemas and family entertainment continues to be well received,” he said during the interview.
Ismail added that the company continues to see significant demand for facility and energy management, and “we continue to fulfill that through our Enova business.”
Al Futtaim’s growth projects are driven by the Kingdom's resilience against global economic challenges.
According to the Ministry of Economy and Planning’s quarterly economic report in July, Saudi Arabia displayed robust growth in the first quarter, spanning non-oil and oil sectors, propelling its real gross domestic product.
One of the leading conglomerates in shopping malls, retail, and leisure across the Middle East, Africa, and Central Asia, Majid Al Futtaim Group reported a substantial 74 percent annual increase in net profit during the first half of 2023.
The growth was buoyed by the robust UAE economy, further reinforcing the group’s positive outlook, according to the firm.
Al Futtaim’s revenues increased 5 percent to reach 18.9 billion dirhams in the first six months of 2023.
As for the company’s earnings before interest, taxes, depreciation and amortization, it increased 13 percent to 2.1 billion dirhams in the first half of this year.
“The year is off to a good start, revenue is up 5 percent despite currency devaluations in several markets in which we operate. More pleasing is the fact that our profitability is growing ahead of our revenue” on the back of “a buoyant economy in our home market of the UAE,” he added.
