In today’s Daily news highlights, Majid Al Futtaim Holding (MAF), a well-known business group based in Dubai, has announced that everything is running as usual, even though changes have been made to its parent company. The company confirmed that these updates will not affect how it works or how it is managed.
Changes at the Parent Company Will Not Impact Operations
Majid Al Futtaim Holding released a statement on Tuesday to clear any confusion. The company said that recent changes in its parent company, Majid Al Futtaim Capital, are focused only on improving leadership and are led by shareholders. These changes are part of a plan to ensure the company’s long-term success.
“These updates do not affect how Majid Al Futtaim Holding is run. We still have an independent board and strong oversight,” said the company in a statement to Khaleej Times.
The company also said that its main focus remains on growing its business and supporting economic development in the countries where it operates.
Majid Al Futtaim Group: A Major Business Force in the UAE
Majid Al Futtaim is one of the UAE’s biggest and most respected family-owned businesses. It is involved in many industries such as:
- Retail: The group owns famous shopping malls like Mall of the Emirates, City Centre, and Matajer.
- Hospitality: The company has 7 well-known hotels including Kempinski, Sheraton Mall of the Emirates, and Pullman City Centre Deira.
- Real Estate, Entertainment, and Facility Management: These services help support the growing demand in the UAE and across the region.
The group welcomes over 178 million customers every year and provides jobs to thousands of people in several countries.
Succession Planning is Key for Family Businesses
The government of Dubai is encouraging family-owned companies to make clear plans for who will take over the business in the future. This is especially important because many families in the Middle East are about to pass on their wealth to the next generation.
According to the Financial Times, Dubai has created a special judicial committee to help manage the leadership transition at Majid Al Futtaim Capital, following the death of the group’s founder, Majid Al Futtaim, in 2021.
Experts from wealth analytics firm Kidbrooke predict that wealthy families in the Middle East will transfer about Dh3.67 trillion ($1 trillion) to the next generation in the next ten years. This is a huge change and brings challenges related to inheritance laws, Sharia and non-Sharia rules, and taxes.
Family Businesses Drive UAE’s Economy
Family-run companies like Majid Al Futtaim are very important to the UAE’s economy:
- They make up 90% of all private companies in the UAE.
- They employ more than 70% of the private sector’s workforce.
- They contribute around 40% to the UAE’s national GDP.
After the founder’s death, Majid Al Futtaim Holding also announced it would hire 3,000 UAE nationals as part of its support for the government’s Emiratisation program, which aims to increase local employment in the private sector.
Company’s Future is Strong and Independent
In its official statement, Majid Al Futtaim Holding said:
“We are still a privately owned, independent Emirati company. Our strategy is clear, our performance is strong, and our governance is stable.”
Despite the leadership changes at the parent company level, the company wants everyone to know that it remains steady and focused on growth.
Daily news highlights like this show how major companies in the UAE are working hard to stay strong during times of change. This Breaking News story also reminds us how important family-owned businesses are to the country’s future.
