Abu Dhabi’s leading holding company ADQ has entered into an agreement with LuLu Group International Holdings (LIHL), paving the way for an investment of up to $1 billion to finance LIHL’s expansion of operations in Egypt.
Mohamed Hassan Al Suwaidi, Chief Executive Officer of ADQ, and Yusuf Ali MA, Chairman of Lulu Group signed the agreement.
ADQ and LIHL will work together to develop up to 30 hypermarkets and 100 express mini-market stores as well as state-of-the-art logistics hubs, distribution and fulfillment centers under the terms of the agreement to improve the eCommerce sector of the retailer across Egypt. This expansion is estimated to create up to 12,000 jobs, developing economic and social growth across 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 late last year. 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”.
Mr. Yusuf 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 the 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 2019, ADQ and the Sovereign Fund of Egypt announced the launch of a joint strategic investment platform worth $20 billion to provide equal funding. The platform aims to establish joint strategic investment plans and specialized funds and investment tools in several key areas, including food, agriculture, mobility, logistics, healthcare and utilities.