MANAMA: A major regional holding company is investing $1 billion in a hypermarket chain paving the way for the latter’s expansion into Egypt.
ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, has entered into a non-binding agreement with Lulu International Holdings (LIHL), the leading hypermarket and supermarket chain in the Middle East, paving the way for an investment supporting LIHL’s expansion of operations in Egypt of up to $1bn.
This is over and above the $1bn ADQ had earlier this year invested in LuLu Group, said a statement yesterday.
The agreement was signed by ADQ chief executive Mohamed Hassan Al Suwaidi and LuLu Group chairman Yusuffali MA.
Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express mini-market stores as well as state-of-the-art logistics hubs, distribution and fulfilment centres to strengthen the retailer’s e-commerce business across Egypt.
It is estimated that this expansion will create up to 12,000 jobs, fostering economic and social growth throughout the country.
“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 agreed late last year,” said Mr Al Suwaidi.
“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.”
“Egypt is a very important growth market for us, and we see great potential for our future business there,” said Mr Yusuffali.
“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.
In November last year, the launch of a joint strategic investment platform worth $20bn, to be funded equally by ADQ and the Sovereign Fund of Egypt, was announced.
The platform aims to establish joint strategic investment projects, as well as specialised funds and investment tools in several key sectors such as food and agriculture, healthcare, mobility and logistics, and utilities.
&uuid=(email))