One of the Middle East’s biggest names in FECs, Majid Al Futtaim, has announced an 18 per cent rise in pre-tax earnings.
The mainly shopping malls developer – with a strong entertainment operating division that includes Magic Planet, VOX Cinemas and Ski Dubai – noted that consumer spending habits were changing in face of high inflation.
EBITDA at MAF reached €518m, up from €436.2m in the equivalent first half of 2021. Revenue was up 15 per cent to €4.9bn. No net profit figure has been disclosed.
CEO Alain Bejjani told Reuters that the results were helped by key markets the United Arab Emirates and Saudi Arabia, where economic conditions are better than some of its other markets like Lebanon and Egypt.
MAF owns shopping centres in five countries, including the UAE and Egypt, and has over 450 franchised Carrefour stores in 16 countries. It also has the specialist division operating VOX cinemas, FECs, retail fashion stores and hotels.
Bejjani said MAF was watching inflation but expected the business to be able to manage the impact, in part due to what he said was its high liquidity. He also said consumers in the UAE and Saudi Arabia were now shopping more but spending less, particularly when purchasing groceries, because of high inflation.
"So you see the average basket coming down," he said. "We have to be extremely watchful of the inflationary pressures and the supply chain issues during the second half of the year and the first half of '23."
