- Discussions on public listing for MAF
- Concerns about legacy impact
- Potential for market volatility and increased disclosure
Going public with Majid Al Futtaim Holding might serve as a solution to the succession issues facing the Dubai-based family business, yet it also poses the risk of disrupting the tightly-knit framework that has characterized this prominent Gulf enterprise for generations.
“Listing all shares can be an effective way to resolve family conflicts,” states Obediah Ayton, chairman of the Family Office Summit.
However, Ayton warns that such a move could be perceived negatively for a company traditionally recognized for its private governance and tight ownership.
This discussion comes in light of recent developments where a special judicial committee, formed at the Dubai government’s behest by the ten heirs of founder Majid Al Futtaim, has been instituted to revamp the management structure of the parent company.
The restructuring initiative, occurring three years post the patriarch’s passing, highlights growing concerns regarding internal rifts and the sustained control of the multibillion-dollar empire.
One of the proposed strategies includes a partial or full initial public offering (IPO), which could formalize the governance structure and provide clearer management of family shares.
“A potential IPO has been on their radar for too long,” remarks Ashish Marwah, chief investment officer at Neovision Wealth Management in Abu Dhabi.
MAF Holding stands as one of the largest private enterprises in the Gulf, with operations spanning retail, real estate, hospitality, and entertainment sectors.
An IPO could attract robust investor interest for Gulf listings, even amidst a globally slowing market. The EY Mena IPO Eye Q1 2025 report noted 14 IPOs in the Mena region during the first quarter of 2025, raising a total of $2.4 billion.
Al Ansari Financial Services, a remittance and foreign exchange firm based in the UAE and part of a prominent family legacy, managed to raise AED773 million ($210.5 million) from its IPO in 2023.
Nonetheless, Ayton expresses reservations about this potential route.
“While it could resolve family disputes, it exposes the entire family to the volatility of public markets. Additionally, it introduces a level of required disclosure,” he comments.
“Why take that step when they’ve managed so well without it to this point?”
Family-run businesses are essential to the UAE’s private sector, accounting for over 90% of private enterprises and contributing more than 40% to the national GDP.
MAF alone oversees assets exceeding $19 billion across sixteen nations, including the UAE, Saudi Arabia, and Egypt.
“The support from the government in the MAF transition reinforces an important fact: succession in prominent family-owned businesses is not merely a personal issue; it has strategic implications and is a priority for the national economy,” asserts Najla Al-Midfa, vice-chairperson and managing director of the Emirates Growth Fund.
