Dubai orders board restructuring at Majid Al Futtaim amid succession chaos
- A special judicial committee in Dubai has ordered Majid Al Futtaim to restructure its board to end years of turmoil and stabilize the company.
- The restructuring aims to mitigate potential infighting among the family members and align the governance with the long-term interests of the firm.
- This move reflects the UAE's efforts to guide family-owned businesses through generational changes and maintain their contribution to economic growth.
In Dubai, United Arab Emirates, a special judicial committee was established to address issues surrounding the estate of Majid Al Futtaim, the billionaire founder of Majid Al Futtaim Holding, who passed away in 2021. This committee was launched in 2022 at the behest of Sheikh Mohammed bin Rashid Al Maktoum to prevent ongoing disputes and to transition the family-run business through generational changes. Majid Al Futtaim, a significant player in the retail and entertainment sectors, is notably recognized for owning the Mall of the Emirates, which features the first indoor ski slope in the Middle East. The restructuring of the board comes after years of turmoil following the founder's death, reflecting the need for governance that aligns with the firm's long-term interests, along with a deliberate effort to avoid infighting that could hinder growth. The company has acknowledged the changes affecting its oversight and governance structure, which now includes five government representatives and four family representatives, emphasizing the importance of balancing family interests with the need for organizational stability. Majid Al Futtaim has become a staple of the local consumer economy, operating malls, hotels, and various entertainment venues in Dubai and the broader Gulf region. Its portfolio and affiliations with global brands have generated revenues exceeding $9 billion in recent years. As family-run businesses often encounter succession disputes, the government's intervention highlights challenges faced by business families in Dubai and the UAE at large, ensuring that these enterprises continue to contribute to the economic landscape. Considering the strong economic strategies that have been established, the state’s proactive stance in managing succession within family-run enterprises aims to cultivate a stable environment for economic growth and development. The outcome of these governance changes remains a focal point for optimizing the performance of Majid Al Futtaim and securing the operational integrity of one of the region’s retail giants.