MAF posts record EBITDA, with decline in retail revenue on the back of the conflict, eyes Syria for expansion

Majid Al Futtaim (MAF) reported record first-half EBITDA of AED 2.5 bn, up 11% y-o-y, with net operating income after tax rising 25% to AED 1.8 bn, according to its earnings release. Revenue rose 1.4% y-o-y to AED 17.5 bn, with earnings growing well ahead of the top line as higher-margin development, malls, cinemas, and digital businesses made up a larger share of the mix. Net income came in at AED 1.1 bn, down 24.7% y-o-y, according to its financials (pdf).

Retail revenue fell 6% y-o-y, driven mainly by non-food categories. MAF attributes this to more challenging consumer conditions, particularly in the UAE, as well as “deliberate actions taken as part of the ongoing transformation,” which it says have created some near-term impact as the business repositions for what it calls sustainable, profitable growth. Markets outside the GCC grew retail revenue 4% y-o-y, led by Egypt and Kenya.

Elsewhere in the portfolio: Shopping mall revenue rose 12% y-o-y on strong leasing activity and tenant performance, helping offset softer tourism demand in the hotels business during 2Q 2026. Net revenue across the wider asset management portfolio grew 4% to AED 2.3 bn. Development remained the largest growth engine, with revenue up 38% on construction activity in Dubai and Cairo. Its development pipeline now exceeds AED 100 bn, with AED 2.8 bn in contracts awarded to date. Cinema revenues grew 3%, and lifestyle revenue grew 5%.

MAF's release cites the regional conflict as a factor affecting the operating environment during 2Q, without breaking out the impact by business line. Separately, CEO Ahmed Galal Ismail told The National that the GCC saw supply-chain disruption and inflationary pressure tied to the conflict, while operations in East Africa, Egypt, and Georgia were unaffected. However, group-wide mall footfall was running roughly flat y-o-y, which he says is a sign of resilience.

Looking ahead: The firm is considering expanding into Syria, Ismail said, noting that it’s “keeping a close eye” on the country and that it has an existing land bank there. MAF would be one of several UAE developers investing in the country, including Arada, which signed an USD 7 bn agreement with the Syrian Sovereign Fund for a 4 mn sqm development in the New Damascus area earlier this month, and Mohamed Alabbar’s USD 18 bn investment through Abu Dhabi-based Eagle Hills, which will include a mixed-use development in Damascus and a beachfront project in Latakia.