DUBAI, United Arab Emirates — A special judicial committee in Dubai has ordered the parent company of one of the Gulf region's prominent retail giants, Majid Al Futtaim, to restructure its board. This move aims to address ongoing challenges faced by the company since the death of its billionaire founder, Majid Al Futtaim, and to secure the organization’s future. The company is widely known for managing the Mall of the Emirates, a key attraction in Dubai.
The restructuring changes reflect Dubai's efforts to navigate family-run businesses through generational transitions. Family businesses have played a crucial role in powering growth in the United Arab Emirates, and authorities are keen to prevent any internal conflicts that may hinder the growth of firms that focus on hiring Emiratis. The Financial Times was the first to report on these board changes, indicating that they were implemented under the directives of the government-established special judicial committee.
In 2022, Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, established a special judicial committee to oversee the estate of the late Majid Al Futtaim following his passing in 2021. In response to inquiries from The Associated Press, the company acknowledged the board changes at Majid Al Futtaim Capital, which manages its various subsidiaries. The company indicated that these changes aim to align governance with the long-term interests of the group, while emphasizing that operations and governance at Majid Al Futtaim Holding remain unaffected and continue under an independent board with strong oversight.
While Dubai’s government did not provide comments on the matter, the Financial Times reported that the parent company is now overseen by a governance structure comprising five government representatives and four family members. Succession disputes are not uncommon in the UAE, where family-run businesses dominate the private sector. The ruling authorities granted merchant families extensive control over various sectors in return for significant investments and rapid development.
However, this economic model has created challenges for local authorities, which have intervened when family patriarchs pass away and tensions arise among relatives. Majid Al Futtaim has become a cornerstone of the local consumer economy, expanding beyond Dubai to become a key player in the Gulf Arab region, managing an array of hotels, entertainment venues, and shopping malls. Its flagship property, the Mall of the Emirates, is a major tourist attraction noted for hosting the Middle East's first indoor ski slope. The company also operates regional franchises for globally recognized brands like Lego.
In the previous year, Majid Al Futtaim's revenue exceeded $9 billion, signifying its robust position in the market. Sheikh Mohammed had a history of mediating succession disputes among local families, including an incident in the 1990s involving Al Futtaim and a cousin, which ultimately provided the resources for the founder to establish his namesake company.
