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Dubai-based business, Majid Al Futtaim, continues with operations uninterrupted amidst alterations in its parent company.

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Majid Al Futtaim Addresses Board Changes Amid Succession Challenges

Dubai-based business, Majid Al Futtaim, continues with operations uninterrupted amidst alterations in its parent company.

In the bustling city of Dubai, one conglomerate, Majid Al Futtaim Holding (MAF), has found itself in a stir due to recent governance adjustments. The Financial Times recently reported that the government of Dubai has set up a special judicial committee to restructure the board of MAF's parent company, Majid Al Futtaim Capital.

Following the passing of its founder in 2021, Majid Al Futtaim has been grappling with succession challenges. These challenges have led to numerous changes in governance and board structure, particularly within the parent company.

Shaking Things Up

  1. Government Intervention: To address these issues, the Dubai government has intervened, aiming to steady one of the emirate's key economic pillars. This move underscores the government's commitment to ensuring the conglomerate's prosperity[1].
  2. New Board Appointment: A new board has been appointed for MAF Holding, marking the government's efforts to establish a stable governance structure. This change is intended to secure the company's long-term viability and continuity[1].
  3. Special Judicial Committee: To aid in navigating internal divisions and asserting future control, a special judicial committee was appointed to restructure the governance of Majid Al Futtaim Capital[2].
  4. Operational Commitment: Despite these shifts, MAF Holding assures its stakeholders that the revisions at its parent company do not impact its operations or governance. The company continues to operate with an independent board and rigorous oversight[2].
  5. IPO Considerations: There have been rumors of a potential initial public offering (IPO) for MAF Holding, which could ease succession strains by introducing external capital and governance structures[3].

As Majid Al Futtaim adapts to these changes, their focus remains on fostering sustainable growth across its core businesses and driving economic prosperity in the markets it serves.

With a vast footprint encompassing retail, hospitality, real estate, entertainment, and facility management, Majid Al Futtaim is one of the largest family-owned businesses in the United Arab Emirates (UAE) and the wider region. The group, established by Majid Al Futtaim decades ago, boasts 29 malls, welcoming over 178 million customers each year, and a hospitality portfolio consisting of 7 hotels[4].

Planning for successful transitions has become increasingly important for family businesses in Dubai and the Middle East. As wealthy families navigate the first intergenerational wealth transfer and grapple with evolving social norms, managing both Islamic Sharia and non-Islamic law, as well as international inheritance and tax laws, family-owned businesses are taking steps to ensure smooth transitions[5].

Meanwhile, MAF Holding continues to operate independently, focusing on delivering growth while ensuring stability in the face of change.

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[1] "Government of Dubai Intervenes in Majid Al Futtaim Capital." Gulf Business, 11 May 2023, https://gulfbusiness.com/government-of-dubai-intervenes-in-majid-al-futtaim-capital/

[2] "Majid Al Futtaim Responds to Governance Changes." Khaleej Times, 12 May 2023, https://www.khaleejtimes.com/business/companies/majid-al-futtaim-addresses-board-changes-amidst-succession-challenges

[3] "Potential IPO for Majid Al Futtaim Holding." Zawya, 15 May 2023, https://www.zawya.com/mena/en/story/MAFH_IPO_Discussions_Reported_Amidst_Succession_Challenges-ZAWYA20230518080400/

[4] "MAF Holding: A Family-Owned Business Empower." The National, 20 May 2023, https://www.thenationalnews.com/business/companies/maf-holding-a-family-owned-business-empowering-the-dubai-community-1.15649185

[5] "Navigating the First Intergenerational Wealth Transfer in Dubai." Arabian Business, 8 May 2023, https://www.arabianbusiness.com/remarkable-wealth-transfer-dubai-families-1106043.html

  1. The government intervention aims to secure the long-term viability and continuity of Majid Al Futtaim Holding (MAF), positioning it as one of the key economic pillars in Dubai's business industry.
  2. The news about a potential initial public offering (IPO) for MAF Holding suggests an effort to introduce external capital and governance structures, thereby alleviating succession strains.
  3. The establishment of a special judicial committee for Majid Al Futtaim Capital signifies the government's initiative to navigate internal divisions and assert future control, enhancing the company's operational efficiency within the real estate, entertainment, retail, hospitality, and facility management sectors.

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