Dubai orders Mall of the Emirates owner to restructure its board
DUBAI, United Arab Emirates (AP) — A special judicial committee in Dubai has reportedly ordered the parent company of one of the region's retail giants to restructure its board, trying to end years of turmoil after the death of its billionaire founder and secure the future of the owner of the Mall of the Emirates.
The changes at Majid Al Futtaim come as Dubai tries to guide the family-run businesses that powered the city-state's growth in the United Arab Emirates through generational change. Authorities also likely want to avoid any further infighting that could slow down the growth of a firm that long has made hiring Emiratis a key goal.
The Financial Times first reported on the changes to Majid Al Futtaim's board, saying it came at the orders of a government-established special judicial committee.
In 2022, Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, established a special judicial committee to look after the estate of Majid Al Futtaim's founder — also named Majid Al Futtaim — following his death in 2021.
Responding to questions Monday from The Associated Press, the company appeared to acknowledge the changes at Majid Al Futtaim Capital, which oversees its group of companies.
The changes 'reflect a shareholder-led effort to evolve governance in line with the long-term interests of the Group,' the company said in a statement. 'These changes do not affect the operations or governance of Majid Al Futtaim Holding. Majid Al Futtaim continues to operate under an independent board and strong oversight.'
Dubai's government did not respond to a request for comment.
The Financial Times described Majid Al Futtaim's parent company as now being overseen by five government and four family representatives.
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The latest local business news and a lookahead to the coming week.
Succession battles aren't unusual in the United Arab Emirates, where family-run businesses dominate private enterprise. Rulers have given merchant families broad control over different sectors in exchange for the promise of big investments and fast-paced development.
But over the years, that economic strategy has caused headaches for authorities, who have intervened when patriarchs die and tensions between disgruntled relatives boil over.
Majid Al Futtaim is a mainstay of the local consumer economy. It's also a giant in the broader Gulf Arab region, owning and operating prominent hotels, entertainment venues and shopping malls. Its portfolio includes the Mall of the Emirates, a major tourist draw in Dubai that houses the Middle East's first-ever indoor ski slope. It also runs regional franchises for global brands, including Lego.
Majid Al Futtaim's revenues last year topped $9 billion.
As crown prince in the 1990s, Sheikh Mohammed mediated a succession dispute between Al Futtaim, the founder, and a cousin. Al Futtaim used the funds from that settlement to start his namesake company.
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