Abu Dhabi’s ADQ partners with Lulu International Holdings for Egypt expansion

Abu Dhabi-based holding company ADQ has entered into a non-binding agreement with supermarket chain Lulu International Holdings (LIHL).

The agreement will pave the way for investments supporting LIHL’s expansion in Egypt of up to $1bn.

ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores as well as logistics hubs, distribution and fulfilment centres to strengthen the retailer’s ecommerce business across Egypt.

The expansion is estimated to create up to 12,000 jobs, fostering economic and social growth throughout the country.

Mohamed Hassan Al Suwaidi, chief executive officer of ADQ, 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.”

“Egypt is a very important growth market for us, and we see great potential for our future business there,” said Yusuff Ali MA, chairman of Lulu.

“Our agreement with ADQ will better position us to continue our rapid expansion of our operations across Egypt.”

In November 2019, the launch of a joint strategic investment platform worth $20bn, to be funded equally by ADQ and the Sovereign Fund of Egypt, was announced.

ADQ is also exploring a potential acquisition of Bausch Health Cos.’s Egyptian drug unit.

Read: Abu Dhabi wealth fund ADQ said to pursue Bausch’s Egypt unit