Lulu and ADQ join hands for $1bn expansion in Egypt
Abu Dhabi, UAE – ADQ, the Abu Dhabi-based one of the largest holding companies in the Middle East, has entered into a nonbinding agreement with Lulu International Holdings, paving the way for up to US$1bn investment supporting Lulu’s expansion in Egypt.
The agreement was signed by Mohamed Hassan al Suwaidi, chief executive officer of ADQ, and Yusuff Ali MA, chairman of Lulu Group, Emirates News Agency (WAM) reported on Sunday.
Under the terms of the agreement, ADQ and Lulu International will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores as well as state-of-the-art logistics hubs, distribution and fulfillment centers 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.
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 said, "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.“
Yusuff Ali 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 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."