Abu Dhabi / WAM
ADQ, one of the region’s holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, announced it entered into a non-binding agreement with Lulu International Holdings (LIHL) paving the way for an investment supporting LIHL’s expansion of operations in Egypt of up to $1 billion.
The agreement was signed by Mohamed Hassan Al Suwaidi, Chief Executive Officer of ADQ, and Yusuff Ali MA, Chairman of Lulu Group.
Under the terms of agreement, ADQ and LIHL 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 centres to strengthen the retailer’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.
Commenting on the announcement, 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.”
“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.”
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.”
In November 2019, the launch of a joint strategic investment platform worth $20 billion, 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, mobility and logistics, healthcare and utilities.