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ADQ, one of the Middle East’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 $1 billion.
This is over and above the US$ 1 billion ADQ had earlier this year invested in Lulu Group.
The agreement was signed by H.E. Mohamed Hassan Al Suwaidi, Chief Executive Officer of ADQ, and Yusuff Ali MA, Chairman of Lulu Group, according to a press release.
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 fulfillment 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.
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 agreed 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 MA, Chairman of Lulu, 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 specialized funds and investment tools in several key sectors such as food and agriculture, healthcare, mobility and logistics, and utilities.
Headquartered in Abu Dhabi, ADQ was established in 2018 as a public joint stock company (PJSC). It holds a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy, including utilities, tourism and hospitality, aviation, transportation, logistics, industrial, real estate, media, healthcare, food and agriculture, and financial services.
As a strategic partner of the Government of Abu Dhabi, ADQ is committed to supporting the development of Abu Dhabi as a modern, competitive, prosperous and sustainable economy. ADQ stimulates value creation by developing prominent cluster ecosystems and instilling a performance culture across its portfolio of companies. ADQ is also an asset owner and investor in target sectors, both locally and internationally, which align with Abu Dhabi’s leadership vision.
