Analysis
Retail

Majid Al Futtaim IPO could ease succession strains

June 10, 2025, 4:31 PM

Majid Al Futtaim controls more than $19 billion in assets across 16 countries, MAF alone controls more than $19 billion in assets across 16 countries, including the Mall of the Emirates in Dubai — Majid Al Futtaim controls more than $19bn in assets across 16 countries, including the Mall of the Emirates in Dubai

Analysts debate taking MAF public
Caution over impact on legacy
Risks volatility and disclosure

Taking Majid Al Futtaim Holding public could provide a way to resolve the succession challenges facing the Dubai-based family conglomerate, but also risks fracturing the tight-knit structure that has long defined one of the Gulf’s most prominent family businesses.

“The best way to solve family disputes is [to] list all the shares,” says Obediah Ayton, chairman of the Family Office Summit.

But Ayton also cautions that a public offering could be seen as a negative move for a group long known for its closely held ownership and private governance.

The remarks follow news this week that a special judicial committee, established by the Dubai government at the request of the 10 heirs of founder Majid Al Futtaim, has been set up to restructure the governance of the group’s parent company.

The shake-up, three years after the death of the company’s patriarch, underscores intensifying concerns over internal divisions and long-term control of the multibillion-dollar empire.

One option reportedly being considered is a partial or full initial public offering (IPO). This could formalise the company’s governance and give family members a clearer way to manage their stakes.

“A potential IPO has been staring them in their faces for too long,” says Ashish Marwah, chief investment officer at Neovision Wealth Management in Abu Dhabi.

MAF Holding, one of the largest private companies in the Gulf, operates across retail, real estate, hospitality and entertainment.

An IPO would find sustained investor appetite for Gulf listings, despite a global market slowdown. According to the EY Mena IPO Eye Q1 2025 report, there were 14 IPOs on Mena markets during Q1 2025, raising $2.4 billion.

UAE-based remittance and foreign exchange house Al Ansari Financial Services, part of the wider eponymous family dynasty, raised AED773 million ($210.5 million) in its IPO in 2023.

Ayton, however, cautions against the move.

“It may be a great way to solve disputes, but it means that the whole family is then exposed to public market volatility. And you’ll have to deal with a certain amount of disclosure,” he says.

“Why do that when you’ve come this far without it?”

Family businesses form the backbone of the UAE’s private sector, representing more than 90 percent of private companies and contributing more than 40 percent to national GDP.

MAF alone controls more than $19 billion in assets across 16 countries, including the UAE, Saudi Arabia and Egypt.

“The government’s support in the MAF transition reinforces a long-standing truth: succession in large family-owned enterprises is not just a private matter, it’s a strategic imperative and a national economic priority,” says Najla Al-Midfa, vice-chairperson and managing director at Emirates Growth Fund.