Leading retail UAE-based firm Majid Al-Futtaim (MAF) has announced increasing their total investments in Egypt to EGP 22.5bn, up from the previously announced EGP 18bn, CEO of Majid Al-Futtaim Alain Bejjani disclosed during the Economic Summit held in Sharm El-Sheikh in mid-March.
Bejjani signed a memorandum of understanding with the Egyptian government, where new EGP 4bn in investment was allocated to develop four neighbourhood centres in the new residential cities in Cairo as well as the development of four new shopping malls in greater Cairo.
MAF will also pump EGP 500m to establish the first local VOX cinemas in Egypt over the coming five years, coping with the cinema trend it has in the UAE.
“The additional projects affirm our strong belief in the vast opportunities available in the Egyptian market,” Bejjani noted.
MAF’s five-year investment plan includes establishing City Centre Almaza with EGP 3.5bn, developing Mall of Egypt with investments of EGP 5bn, the expansion of Carrefour hypermarkets and supermarkets network to 55 branches by end of 2019 with investments of EGP 5bn and the recent expansion of City Centre Alexandria with investments of EGP 70m.
Majid Al-Futtaim announced that it is currently undertaking feasibility studies for four potential plots to develop neighbourhood centres in Cairo, stressing that the new developments are set to meet the “continuously rising” demand, both locally and regionally.
Commenting on MAF’s investment announcement, Minister of Investment Ashraf Salman said: “As Egypt is undergoing a much needed economic reform process, we are working restlessly to identify the proper partners who will collaborate with us as we endeavour to achieve prosperity for all Egyptians. As such, it is important for us to work with experienced, committed partners and we believe that Majid Al-Futtaim has a significant role to play in the development of our country’s retail landscape and economy in general.”
The company’s shopping malls in Egypt have attracted more than 25 million visitors in 2014, MAF said.
Founded in 1992, Majid Al Futtaim is the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (MENA). Majid Al-Futtaim owns and operates 17 shopping malls, 11 hotels and three mixed-use communities in MENA.
The shopping malls portfolio includes Mall of the Emirates, City Centre malls, and also four community malls which are in joint venture with the Government of Sharjah. It holds exclusive rights to the Carrefour franchise in 38 markets across Middle East, Africa and Central Asia, operating a portfolio of over 55 hypermarkets and over 65 supermarkets in 12 countries.