LuLu International Holdings (LIHL), one of the leading hypermarkets & supermarket chains in the Middle East has entered into a non-binding agreement with Abu Dhabi headquartered investment firm, ADQ to acquire US$1 billion for expansion in Egypt.
Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores in the North African country.
In addition, it will also see the development of state-of-the-art logistics hubs, distribution and fulfilment centres to strengthen the retailer’s ecommerce business across Egypt, indicated ADQ.
“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 our rapid expansion of our operations across Egypt,” said Yusuff Ali MA, Chairman of Lulu.
It is estimated that this expansion will create up to 12,000 jobs, fostering economic and social growth throughout the country.
“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,” H.E. Mohamed Hassan Al Suwaidi, Chief Executive Officer of ADQ, said.
The agreement follows the announcement of a US$20 billion joint investment platform between ADQ and the Sovereign Fund of Egypt agreed late last year.
The platform aims to establish joint strategic investment projects, as well as specialized funds and investment tools in several key sectors such as food and agriculture, healthcare, mobility and logistics, and utilities.
The Lulu Group has 194 hypermarkets and shopping malls across the Gulf Cooperation Council, Egypt and the far east.
The retailer opened its second hypermarket in the capital of Egypt in June this year.
In the country, the group already employs more than 500 Egyptians and this number is set to rise to over 8,000 direct and indirect job opportunities in the coming three years.