Abu Dhabi holding company ADQ has reached a non-binding agreement with hypermarket and supermarket chain Lulu International Holdings (LIHL).
As per the terms of the agreement, ADQ will invest up to $1bn to support LIHL’s expansion in Egypt.
The companies will work together to develop up to 30 hypermarkets and 100 express minimarket stores.
In addition, the expansion will include the establishment of an advanced logistics hubs, distribution and fulfilment centres.
The expansion is expected to generate up to 12,000 jobs while boosting Lulu’s e-commerce business in the country.
The agreement was signed by ADQ chief executive officer Mohamed Hassan Al Suwaidi and Lulu Group chairman Yusuff Ali MA.
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.”
Last year, ADQ and the Sovereign Fund of Egypt announced the launch of a $20bn-worth joint strategic investment platform.