Dubai has asserted control over a crucial part of its consumer economy by restructuring governance following a contentious succession that arose after the founder’s passing three years ago.
A special judicial committee, established by the ten heirs of Majid Al Futtaim, has appointed a new board to manage its parent company, according to sources familiar with the matter. MAF is a significant entity in the Gulf, involved in sectors like retail, hospitality, real estate, and entertainment, with brands such as Carrefour, Lego, and Hollister under its umbrella, generating revenues exceeding $9 billion last year.
However, tensions among the family shareholders had begun to affect the company’s operations. The committee, spearheaded by Essa Kazim from the Dubai International Financial Centre, has responded by reforming MAF Capital’s governing board to include government and family representatives, led by Emirati businessman Fadel al-Ali.
In addition, MAF Capital has transitioned from a limited liability entity to a public joint stock company, lowering the necessary agreement threshold for decision-making. According to MAF, these adjustments signify a movement toward governance that aligns with the group’s long-term aspirations while reassuring that Majid Al Futtaim remains a privately held Emirati company with robust strategies and governance.
Under its late founder, known for creating the iconic Mall of the Emirates featuring the region’s first indoor ski slope, MAF built a reputation for innovative management. Although Dubai is experiencing a vibrant economic surge driven by affluent newcomers, its retail sector remains fiercely competitive. Family-owned firms in the Gulf grapple with significant challenges post-founder’s demise, often resulting in varying levels of management competence and dedication among heirs.
This isn’t the first instance of Dubai intervening in the Majid Al Futtaim group’s affairs. After the founder’s death, a judicial body was appointed in early 2022 to supervise inheritance matters. Historically, in the 1990s, the ruler intervened in family disputes, ultimately dividing the business into two branches.