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Dubai has taken control of a linchpin of the emirate’s consumer economy, stepping in to overhaul its governance and resolve a troubled succession three years after its founder died.
A government-established “special judicial committee” — formed at the request of the 10 heirs of the founder of the eponymous Majid Al Futtaim group — has appointed a new board to oversee its parent company, according to four people with knowledge of the details.
MAF is one of the largest privately owned companies in the Gulf, spanning malls, hotels, real estate and entertainment. Regionally it operates brands such as Carrefour, Lego and Hollister. Its revenues were more than $9bn last year.
But concerns had grown that disagreements among the shareholders of the family-owned group were undermining the business, said people with direct knowledge of the situation.
The special judicial committee — led by Essa Kazim, who runs Dubai International Financial Centre — has responded by reconstituting MAF Capital’s board with five government and four family representatives, led by Emirati businessman and financial regulator Fadel al-Ali.
MAF Capital has also been changed from a limited liability company to a public joint stock company and the threshold for agreement on decision-making has been reduced.
The changes “reflect a shareholder-led effort to evolve governance in line with the long-term interests of the group”, MAF said in a statement to the Financial Times.
“Majid Al Futtaim remains a privately owned and independently operated Emirati company with a clear strategy, strong performance, and stable governance,” the company added. “These changes do not affect the operations or governance of [operating company] Majid Al Futtaim Holding.”
The independent board of Majid Al Futtaim Holding is chaired by former KPMG International chair Sir Michael Rake.
“The company now has a period of stability that could pave the way for a listing,” one of the people with knowledge of the situation said.
Under the late founder, MAF — most famous for the landmark Mall of the Emirates that had the region’s first indoor ski slope — developed a reputation for forward-thinking management, raising debt in international bond markets to fund domestic and regional expansion.
Dubai is enjoying an economic boom fuelled by a wave of wealthy incomers. But its retail market is highly competitive.
Family-owned companies across the Gulf often face existential challenges when founders die, leaving heirs with varying degrees of business competence and interest.
It is not the first time Dubai has intervened in the Majid Al Futtaim group. In early 2022, ruler Sheikh Mohammed bin Rashid al-Maktoum appointed a judicial committee to oversee the founder’s inheritance after his death.
And in the 1990s, when crown prince, he stepped in to mediate a dispute between Majid Al Futtaim and his cousin, splitting the business into two entities.
