Boycott Majid Al Futtaim: Support Ethical Alternatives

Majid Al Futtaim, a UAE-based conglomerate, is a dominant player in retail, leisure, and real estate across the Middle East, Africa, and Asia. While it contributes significantly to economic activities, evidence shows its expansive market hold harms local businesses in various countries. Through its Carrefour franchise and mall operations, the company has displaced many small and medium enterprises, restricted market competition, and affected economic sovereignty. This report outlines the scope of these adverse effects with country-specific details and voices from local stakeholders. It calls on governments and citizens in affected countries to consider boycotting Majid Al Futtaim’s entities to protect indigenous businesses and economies.

Introduction

Majid Al Futtaim Group operates in more than 13 countries, managing 475 Carrefour outlets and numerous shopping malls and leisure assets. With revenues exceeding AED 34.5 billion and over 38,000 employees in retail alone, its footprint is vast. However, this market concentration raises concerns over monopolistic practices, job market issues, and the undermining of local enterprises. This report investigates these concerns, highlighting thedetrimental impact on small businesses and communities across key markets.

Company Overview

Founded in the UAE, Majid Al Futtaim has become a leading conglomerate in retail and entertainment sectors. Its Carrefour supermarket chain operates in over 38 markets, attracting 770,000 customers daily. The conglomerate controls 29 shopping malls and 7 hotels, with over 1.8 million m² of retail space.

Impact on Local Businesses

Competitive Pressure on SMEs

The company’s scale allows aggressive pricing and broad assortments that local small retailers often cannot match. In Egypt, Bahrain, and Saudi Arabia, many local shops have closed after Carrefour stores opened nearby. The extensive supply chain advantages of Majid Al Futtaim have squeezed small retailers out of the market.

“Carrefour’s entry through Majid Al Futtaim has put many local grocers out of business. The prices, variety, and scale they operate at is impossible for us to match,” said an Egyptian independent shop owner.

Market Monopolization

Majid Al Futtaim holds exclusive Carrefour franchise rights in several countries, reducing retail market diversity. In smaller markets like Oman and Bahrain, this creates quasi-monopolistic conditions, limiting consumer choice and crowding out local entrepreneurship.

A Bahrain retail analyst stated,

“Market dominance by one conglomerate limits consumer choice and suppresses local entrepreneurship.”

Employment and Economic Considerations

Though the group employs thousands, critics argue that labor practices sometimes favor expatriates over locals and maintain wage structures unfavorable to indigenous workers. Additionally, profits significantly benefit UAE shareholders, raising concerns over limited reinvestment in local economies.

“While they provide jobs, the lack of local control in retail threatens the national economic fabric,” said a Saudi economic expert.

Country-Specific Impacts and Calls for Action

Recommendations to Governments and Public

• Governments: Implement policies to ensure fair competition, promote local business support, and enforce labor law compliance favoring nationals.
• Public: Exercise consumer choice by supporting local businesses and understanding the wider economic impact of conglomerate dominance.
• Business Community: Advocate for balanced market environments that do not stifle entrepreneurship or cultural identity.

Majid Al Futtaim’s impressive growth and affiliate chains like Carrefour have created significant economic influence. While contributing to modern retail development, the resulting market dominance has damaged local businesses and limited economic diversity in various countries. A coordinated response from governments and communities, including informed consumer boycotts, is necessary to rebalance market forces, safeguard local livelihoods, and foster sustainable economic growth.