DUBAI, United Arab Emirates — A judicial committee in Dubai has taken the significant step of ordering the reformation of the board for the parent company of one of the region’s leading retail firms. This initiative seeks to resolve ongoing discord following the death of its billionaire founder, with an eye on ensuring the stable future for the owner of the prestigious Mall of the Emirates.
Dubai is actively guiding its family-operated businesses—which have significantly contributed to the development of the city-state in the United Arab Emirates—through generational transitions. An essential goal remains to prevent any internal conflicts that could potentially hinder a business that has traditionally prioritized employing Emiratis.
Initial news of the adjustments to Majid Al Futtaim’s board emerged from a report, detailing that the decision was driven by a special judicial committee established by the government. In 2022, following the death of its founder, Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler, initiated this committee to manage his estate.
While addressing inquiries on Monday, the company alluded to the recent modifications at Majid Al Futtaim Capital, which manages its business conglomerate. The statement released emphasized that these updates represent an effort by shareholders to align their governance with the long-term objectives of the group. They clarified that the alterations do not interfere with the daily operations or administration of Majid Al Futtaim Holding, which continues under independent board moderation and thorough oversight.
Despite reaching out, Dubai’s government has not offered any comments on the situation. The company’s parent entity is now reportedly managed by a combination of five representatives from the government and four from the family.
Succession challenges are quite common in the United Arab Emirates, given that family-owned enterprises dominate its private sector. In exchange for assurances of substantial investments and robust development, ruling bodies have historically relinquished significant industry control to merchant families.
This approach has, however, presented challenges, prompting authorities to step in when the demise of family heads leads to conflicts among heirs. A stalwart of the local consumer sector, Majid Al Futtaim also asserts its influence across the Gulf Arab region, managing significant assets including hotels, entertainment complexes, and shopping centers. Its diverse portfolio features the Mall of the Emirates—a renowned tourist attraction in Dubai, famous for housing the Middle East’s inaugural indoor ski slope. The group also manages regional franchises for various international brands, such as Lego.
In the previous year, Majid Al Futtaim reported revenues exceeding $9 billion. During the 1990s, Dubai’s then-crown prince, Sheikh Mohammed, played a pivotal role in mediating a succession disagreement between the founder, Majid Al Futtaim, and a family member. The resolution of this dispute provided Al Futtaim with the resources to establish his eponymous company.