#Dubai’s MAF: Majid Al Futtaim Said to Eye Options Including Stake Sale - Bloomberg

Dubai’s MAF: Majid Al Futtaim Said to Eye Options Including Stake Sale - Bloomberg

The government-appointed officials overseeing Majid Al Futtaim Holding LLC have discussed a range of strategic options for the sprawling $19 billion conglomerate, including a potential stake sale, according to people familiar with the matter.

The group has held early-stage talks on the merits of a minority stake sale, some of the people said, declining to be identified as the information is confidential. An initial public offering and the sale of some business lines have also been discussed, some of the people said.

Financial advisers have recently pitched for a role on the share sale, though it wasn’t immediately clear if banks have formally been appointed, some of the people said. No final decisions have been made and a transaction might ultimately not materialize, they added.

Representatives for Majid Al Futtaim declined to comment.

Long seen as an anchor of Dubai’s economy, Majid Al Futtaim owns the Mall of the Emirates, which features an indoor ski hall, as well as residential communities and the Carrefour hypermarket franchise across parts of the Middle East.

That breadth could be a hurdle to a stake sale as buyers might not necessarily want exposure across the firm’s multiple business verticals, according to one person familiar with the matter. The conglomerate has faced headwinds at its retail division amid currency crises in countries like Egypt and a boycott movement linked to the Israel-Hamas war.

The firm’s ownership transitioned to multiple heirs after its eponymous billionaire founder, Majid Al Futtaim, died in December 2021. The ruler of Dubai appointed a special judicial committee, which ultimately oversees the board that’s chaired by Dubai Financial Services Authority’s Fadel Al Ali.

The United Arab Emirates, of which Dubai is a part, has been stepping up efforts to formalize succession planning, Bloomberg News has reported. Officials have met with heads of prominent business groups to discuss the potential creation of family offices to better manage generational transitions.

There has also been a renewed effort to encourage local listings, people familiar with the matter said earlier this year, though Majid Al Futtaim executives have previously indicated they were not considering an IPO.

Family-owned businesses make up about 90% of private companies in the UAE, spanning sectors from supermarket chains to luxury car dealerships. While there are no official estimates, US-based Dash Venture Labs projects that the country’s richest families will control a combined $1 trillion by the end of next year.