UAE- Lulu in 300m Egypt foray

Date

12/20/2015 11:49:04 PM

(MENAFN- Khaleej Times)

Retail major LuLu Group has opened its first hypermarket in Cairo and plans to open nine more stores in two years to offer jobs up to 10000 people.

The group will spend $300 million in North Africa's largest economy in two years. It plans to contribute to the local economy by procuring locally produced fruits and vegetables.

The group's 119th hypermarket was inaugurated by Khalid Hanafy Egyptian minister for trade in the presence of Galal El Saeed governor of Cairo Mohamed Abdul Sayed advisor to the prime minister and Khalifa Thunaiji Charge De Affairs at the UAE Embassy.

Yusuffali M.A. chairman of LuLu Group said he considers Egypt a very important market in the group's expansion strategy.

"The hypermarket will offer a window of opportunity to the local community. We will encourage the Egyptian agricultural sector by procuring and promoting local agricultural produce and also exporting them to our stores across the GCC and Far East" the chairman said.

The new store is located in Twin Plaza opposite Police Academy in New Cairo and is spread across 170000 square feet.

Currently the retail group exports produce worth 50 million Egyptian pounds (EGP) and this will go up to EGP150 million next year Yusuffali added. Key products being exported include fruits and vegetables meat fish cheese and pickles.

LuLu Group also plans to set up its own food processing plants in Egypt to further boost exports.

"We believe that having a strong national workforce is vital to our long-term success as it helps in creating sustainable community living. Currently there are more than 800 Egyptians employed at our new hypermarket in Cairo and we intend to employ 10000 more Egyptians in the next two years" Yusuffali said. The group employ more than 3000 people in its operations across GCC countries.

Egypt has been attracting investments from GCC countries in various sectors including infrastructure energy oil and gas manufacturing and retail following the investment conference held at Sharm Al Sheikh in March where President Abdel Fattah El Sisi opened the doors for GCC investment into his country.

Egypt is viewed as a strategic market for UAE companies with around 600 firms already operating there. In a hope to stabilise the country the UAE has provided Egypt with unprecedented economic support both in terms of grant-based investments and by bringing the private sector to the Egyptian market.

Off to the Far East

LuLu Group is also embarking on an expansion drive in the Far East. LuLu's first hypermarket will open in Malaysia and Indonesia by March next year.

The group also plans to open 15 more hypermarkets in these two countries in the next two years said a source in the company.

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