March 23, 2023
Economy International

Dubai’s MAF Group Makes Tough Decisions to Remain Profitable

Dubai-based shopping mall developer, Majid Al Futtaim (MAF) group, has recently laid off approximately 105 workers out of its 46,000 total staff. The move was made to increase the company’s profitability under its new CEO, Ahmed Galal Ismail. It is worth noting that MAF owns assets worth over $16 billion, including the Mall of the Emirates in Dubai and an indoor ski resort.

In a statement released by MAF, the company highlighted its continuous efforts to analyze its operations and adapt to changing market conditions. By doing so, the company aims to increase revenue for its shareholders while ensuring sustainable growth.

MAF’s leadership underwent a change after the sudden removal of former CEO, Alain Bejjani, in January. Ahmed Galal Ismail was appointed as his replacement, but no statement was issued by the company regarding the abrupt change. In 2020, MAF generated more revenue than in 2021, with a 12% increase, but its net profit decreased by 2%.

The franchise rights for the French hypermarket, Carrefour, in the Middle East, are held by MAF. Emirati businessman, Majid Al Futtaim, founded the company in 1992. Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, announced Al Futtaim’s death at the end of 2021 and praised him as one of the emirate’s pioneers.

Overall, MAF’s decision to lay off workers is part of its continuous efforts to adapt to changing market conditions and remain profitable. The company’s new CEO, Ahmed Galal Ismail, aims to steer MAF towards sustainable growth while increasing revenue for its shareholders. Despite the challenges faced by the retail industry in recent years, MAF remains a major player in the Middle Eastern retail market, holding the franchise rights for Carrefour in the region.

While the sudden removal of former CEO Alain Bejjani may have raised some questions, the appointment of Ahmed Galal Ismail has been welcomed by the company. With its assets worth over $16 billion, MAF is well-positioned to weather any market turbulence and remain a significant player in the Middle Eastern retail market.

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