MAF Lifestyle: Holding Out for the Perfect Moment to Step into Egypt

Majid Al Futtaim

• Division in search of potential
• Core aspects present, mentions CEO
• Yet currency stability is essential

The lifestyle division of the UAE group Majid Al Futtaim is seeking possibilities for expansion into Egypt. Nonetheless, there needs to be “stability” in the nation prior to any action being taken, stated MAF Lifestyle’s CEO, Fahed Ghanim, during an interview with AGBI.

Majid Al Futtaim, as a collective, currently operates in Egypt, which includes the Mall of Egypt situated in Cairo, launched in 2017, along with franchises for brands such as Ikea, Toys R Us, and Marks & Spencer.

However, Egypt is grappling with elevated inflation, a prolonged currency crisis, and stringent regulations concerning the financing of imports.

Ghanim, who has spent over 20 years in the retail industry within the GCC, remarked that Egypt “is a market we continually monitor.”

MAF Lifestyle currently boasts a network of more than 100 outlets and 25 digital platforms throughout the GCC region.

Its brand portfolio includes Lululemon, Lego, Abercrombie & Fitch, Hollister, AllSaints, Eleventy, and Psycho Bunny. Additionally, it operates THAT Concept Store, a multi-brand retail environment and application covering a wide range from designer apparel to furniture.

In March 2022, the Central Bank of Egypt, confronted with mounting economic challenges, instituted stringent regulations on financing the import of non-essential commodities such as automobiles, mobile devices, electronics, fresh produce, cocoa, and jewellery and pearls, as a measure to control the country’s limited foreign currency reserves.

Although it has since eased restrictions on car imports, much of the other aspects remain rigorously regulated.

“The fundamental economic conditions are indeed present. It’s merely that stability is required for both the currency and the import laws to facilitate the unhindered circulation of goods,” Ghanim expressed.

MAF’s lifestyle segment reported a revenue increase of 23 percent, reaching AED584 million ($159 million) for the first half of this year.

Conversely, the retail sector of MAF experienced an 11 percent year-on-year decline in revenue during the same timeframe, primarily due to currency devaluations in Egypt and Kenya, resulting in a 6 percent decrease in the group’s net profit.

Ghanim indicated that MAF Lifestyle intends to “intensify” its efforts in the UAE while also exploring further prospects within the broader GCC region.

“We are continuing to expand. However, it’s a deliberate and carefully considered growth, where we strive to connect more closely with our consumers through the brands,” he noted.

The firm, which employs over 1,500 personnel, unveiled more than 18 outlets in the region this year and aims for an additional 20 openings in 2025.

MAF Lifestyle is currently engaged in discussions with new brands to enhance its fashion offerings and home segment.

“We are in talks that we hope will be disclosed next year,” Ghanim remarked, also noting his participation as a speaker at the Retail Summit Saudi, set to take place on January 27 and 28 in Riyadh.