MAF Lifestyle awaits ‘stability’ before entering Egypt

Majid Al Futtaim

• Division looking for opportunities
• Fundamentals there, says CEO
• But currency stability needed

The lifestyle arm of the UAE conglomerate Majid Al Futtaim is looking for opportunities to expand into Egypt. However, there must be “stability” in the country before any move is made, MAF Lifestyle’s CEO, Fahed Ghanim, has told AGBI.

Majid Al Futtaim as a group already runs operations in Egypt, including the Mall of Egypt in Cairo, opened in 2017.

But Egypt is suffering from high inflation, a longstanding currency crisis and strict regulations on financing imports.

The MAF Lifestyle boss, who has been in the retail sector in the GCC for more than 20 years, said Egypt “is a market that we keep looking at.”

MAF Lifestyle’s network includes more than 100 stores and 25 digital platforms across the GCC region.

Its brands include Lululemon, Lego, Abercrombie & Fitch, Hollister, AllSaints, Eleventy and Psycho Bunny. It also runs THAT Concept Store, a multi-brand store and app covering everything from designer clothing to furniture.

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In March 2022 the Central Bank of Egypt, faced with growing economic pressures, ordered strict regulations on financing the import of non-essential goods such as cars, mobile phones, electronics, fresh fruit, cocoa and jewellery and pearls in an attempt to manage the country’s limited foreign currency reserves.

It has since relaxed rules on car imports but much of the rest remain strictly controlled.

“The economic fundamentals are there. It’s just that stability is needed for both the currency and the importation laws to allow the free flow of goods,” Ghanim said.

MAF’s lifestyle business reported an increase in revenue of 23 percent to AED584 million ($159 million) for the first half of this year.

The retail division of MAF reported an 11 percent year-on-year drop in revenue over the same period, largely attributed to currency devaluations in Egypt and Kenya, as the group’s net profit fell 6 percent.

Ghanim said MAF Lifestyle would “double down” on its work in the UAE and also look at further opportunities across the wider GCC.

“We’re continuing to grow. But it’s a selective and well-studied growth, where we’re going closer to our customers with the brands,” he said.

The company, which employs more than 1,500 staff, launched more than 18 stores in the region this year and plans another 20 new openings in 2025.

MAF Lifestyle is in talks with new brands to add to its fashion portfolio and home division.

“We’re having some discussions that will hopefully be announced next year,” said Ghanim, who is a speaker at the Retail Summit Saudi, taking place on January 27 and 28 in Riyadh.