Lulu Group International has entered into a partnership with the Abu Dhabi investment company ADQ. ADQ formerly known as the Abu Dhabi investment company will invest $1 billion to help Lulu with its expansion plans in Egypt.
Under the terms of the agreement, ADQ and LIHL will work collectively to develop up to 30 hypermarkets and 100 express minimarket stores as well as state-of-the-art logistics hubs, distribution, and fulfillment centres to strengthen the retailer’s eCommerce business across Egypt.
Yusuff Ali MA, Chairman of Lulu, said: “Egypt is a very important growth market for us, and we see great potential for our future business there. Our agreement with ADQ will better position us to continue the rapid expansion of our operations across Egypt.”
Lulu Group is one of the largest retail organisations operating 194 hypermarkets and shopping malls across GCC, Egypt, and Far East with more than 55,000 employees serving approximately 1.6 million shoppers a day. It also has sourcing operations and food processing units in different parts of the world, including the US, the UK, Spain, Africa, China and others Far Eastern countries.
Bloomberg reports that the deal comes after Egypt and the United Arab Emirates set up a $20 billion joint platform last year to invest in a range of sectors and assets. The move was key for Cairo, which has been looking to attract foreign capital to help shore up a broader economic revival plan. Lulu’s expansion is expected to create up to 12,000 jobs, according to the statement.
Indian entrepreneur, Yusuff Ali, founded Lulu and set up the business during a year-long oil boom in the Gulf region. The company has an annual turnover of about $7.4 billion and employs more than 55,000 people.
ADQ owns major enterprises spanning key sectors of the Gulf emirate’s economy, including Abu Dhabi Securities Exchange and Abu Dhabi Airports. It has recently been snapping up assets in industries ranging from food to energy.
