Abu Dhabi government owned holding company ADQ announced on Monday that it has entered into a non-binding agreement to invest $1 billion with supermarket and hypermarket chain Lulu International Holdings to expand Lulu’s operations into Egypt.
In a statement, ADQ said that the ADQ and Lulu will work to develop up to 30 hypermarkets and 100 express minimarket stores. In addition to this, they will work towards developing state-of-the-art logistics hybs, as well as distribution and fulfilment centres to strengthen the Lulu’s ecommerce business across Egypt.
“It is estimated that this expansion will create up to 12,000 jobs, fostering economic and social growth throughout the country,” the statement read.
In a statement, ADQ’s CEO HE Mohamed Hassan Al Suwaidi said, ‘Our agreement with Lulu International Holdings reflects our wider commitment to investing in Egypt, following the announcement of our joint investment platform with the Sovereign Fund of Egypt late last year.”
He added that the phased roll-out of multiple retail stores “would provide significant socio-economic benefits to local communities across the country, as well as bolster the quality and range of products available to Egyptian consumers.” We are pleased to be able to give further support to the co-operation that already exists between the UAE and Egypt."
Lulu group chairman Yusuff Ali MA said that Egypt is an important growth market for them, and that they see great potential for future business there. “Our agreement with ADQ will better position us to continue our rapid expansion of our operations across Egypt. I take this opportunity to thank the leadership of Abu Dhabi and ADQ for their support to expand Lulu’s operations in Egypt which will immensely benefit the country and its citizens,” he said.
This comes after the launch of a joint strategic investment platform worth $20 billion in November 2019, which is to be funded equally by ADQ and the Sovereign Fund of Egypt.
ADQ’s current investment in Lulu is over and above the $ 1 billion ADQ had invested in Lulu Group earlier this year for a nearly 20% stake.