Majid Al Futtaim, a prominent player in Egypt's retail and leisure sector, views the country as a strategic market, with a long-term investment approach. The company has been operating in Egypt for 27 years, with total investments reaching approximately $2.8 billion across various sectors, including real estate, retail, entertainment, and hospitality.
Khalifa bin Barick, CEO of Majid Al Futtaim Properties, highlighted that the company is committed to enhancing its investments in Egypt, leveraging its extensive experience in the market. The company's portfolio in Egypt includes several notable assets, such as Mall of Egypt, City Centre Almaza, City Centre Alexandria, and City Centre Maadi.
Majid Al Futtaim is set to invest $400 million in two major projects, Element 33 and Junction, over the next four years. Element 33 will offer a unique concept that combines local, regional, and international food and beverage brands with flexible workspaces and entertainment options. Junction, on the other hand, is the company's first business complex in Egypt, featuring offices, retail spaces, restaurants, cafes, and a 5-star hotel.
The Junction project, located next to Mall of Egypt in west Cairo, will span nearly 99,000 square meters and comprise eight buildings, 440 office units, over 50 stores, restaurants, and a cafe, as well as a 5-star hotel managed by the 25hours Hotels brand. The project is expected to be completed within three years and will provide a comprehensive experience, incorporating work, retail, hospitality, and lifestyle elements.
Majid Al Futtaim has partnered with IWG to provide flexible workspaces within Element 33 under the Spaces brand. The company has observed significant changes in consumer behavior in recent years, with customers seeking more comprehensive experiences and services in one location. This shift has prompted Majid Al Futtaim to reassess its approach to developing and managing its assets.
The company's existing shopping centers in Egypt, including Mall of Egypt, City Centre Almaza, City Centre Alexandria, and City Centre Maadi, attract around 240 million visitors annually. Majid Al Futtaim's various businesses in Egypt serve nearly 600 million customers each year, making it a crucial factor in the company's investment decisions.
Majid Al Futtaim has been developing its data analysis capabilities for around 7-8 years, utilizing artificial intelligence and data to enhance customer experiences and offer more tailored promotions. The company plans to finance its new investments in Egypt through cash flows from its existing assets and internal resources, without seeking new banking facilities.
Key points
- Majid Al Futtaim to invest $400 million in Egypt over four years.
- The company is focusing on developing its existing assets and adding new components to its portfolio.
- Majid Al Futtaim has 27 years of experience in Egypt, with total investments of approximately $2.8 billion.
