Abu Dhabi’s ADQ Pumps $1 Billion Into Lulu’s Egypt Expansion
ADQ to Back Lulu’s Expansion in Egypt With $1 Billion Investment
(Bloomberg) -- Abu Dhabi investment company ADQ will partner with LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, by investing $1 billion to back the grocer’s expansion in Egypt.
ADQ, formerly known as Abu Dhabi Development Holding Co., will team up with Lulu to develop up to 30 hypermarket stores and other operations across the Arab world’s most populous nation, according to a statement on Monday. An investment company led by Sheikh Tahnoon Bin Zayed Al Nahyan, who also chairs ADQ, acquired an almost 20% holding in Abu Dhabi-based LuLu earlier this year.
The deal comes after Egypt and the United Arab Emirates set up a $20 billion joint platform last year to invest in a range of sectors and assets. The move was key for Cairo, which has been looking to attract foreign capital to help shore up a broader economic revival plan. Lulu’s expansion is expected to create up to 12,000 jobs, according to the statement.
Lulu was founded by Indian entrepreneur Yusuff Ali, who set up the business during a years-long oil boom in the Gulf region. The company has an annual turnover of about $7.4 billion and employs more than 55,000 people.
The expansion into Egypt would follow plans by Saudi Arabia’s $360 billion sovereign wealth fund to explore a potential investment in LuLu. ADQ has invested in LuLu Group businesses, except in its Indian and Qatari operations, a person familiar with the matter said earlier this month.
ADQ owns major enterprises spanning key sectors of the Gulf emirate’s economy, including Abu Dhabi Securities Exchange and Abu Dhabi Airports. It has recently been snapping up assets in industries ranging from food to energy.
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