LuLu Group to inject $500m investments into Egypt

Dr. Ibrahim Ashmawy and Dr. Tarek El-Sebaiy signed the agreement with Yusuf Ali, in the presence of Mostafa Madbouly, Ali Al-Meselhi and Assem Al-Gazzar at the cabinet HQ in Cairo.
Updated 02 September 2019

LuLu Group to inject $500m investments into Egypt

The Ministry of Supply and Internal Trade and the Ministry of Housing, Utilities and Urban Communities of Egypt signed an agreement with UAE’s LuLu Group to establish new hypermarkets in different parts of Cairo.

On behalf of the Egyptian government, Dr. Ibrahim Ashmawy, deputy minister of internal trade and chairman of Internal Trade Development Authority (ITDA) of Egypt; and Dr. Tarek El-Sebaiy, deputy minister of housing; signed the agreement with Yusuf Ali, chairman of LuLu Group International; in the presence of Mostafa Madbouly, prime minister of Egypt; along with Minister of Supply and Internal Trade Ali Al-Meselhi, and Minister of Housing, Utilities and Urban Communities Assem Al-Gazzar, at the Cabinet HQ in Cairo.

“When we started thinking about investing in Egypt, we had a plan to pump only $100 million, but today we finalized plans to invest $500 million to establish a number of hypermarkets and minimarkets, providing 8,000 sustainable jobs for the Egyptians,” said Ali, LuLu Group chairman.

Under the agreement, four projects will be built by the Urban Communities Authority within 12 months, with LuLu Group starting to manage and operate the projects in a period of three to six months from the date of completion of the construction in New Cairo, 6th October City and El-Obour, according to Al-Meselhi, minister of supply and internal trade. This is part of the government’s plan to attract foreign investments, he added.

Apart from this, LuLu is also finalizing plans to set up another six hypermarkets and four minimarkets with other developers from the private sector. LuLu is also in the final stages of discussion with the government to enter the wholesale market for vegetables and fruits and a logistics center to support its retail activities in the country. 

At present, LuLu has one hypermarket in the capital city Cairo where it employees more than 500 Egyptians. 

With 175 stores operating worldwide, LuLu is the fastest growing retail chain across 10 countries, which include the GCC, India, Egypt, Indonesia, and Malaysia. Founded in the early 1990s, it has successfully expanded to different parts of the world, garnering more than 1,600,000 shopping patrons everyday.

LuLu is one of the favorite shopping destinations in Saudi Arabia, where it offers a broad selection of international products. The UAE group is one of the Middle East’s top employers with its work force numbering around 50,000 people.

Positive social impact of COVID-19 in KSA: Survey

Updated 12 August 2020

Positive social impact of COVID-19 in KSA: Survey

A survey commissioned by Al-Aghar Group, an independent Saudi think tank, in partnership with global management consultancy Kearney, has revealed that most thought leaders and decision-makers in the Kingdom anticipate that COVID-19 will be a positive accelerant of the transformation already underway in the Kingdom. The survey focused specifically on the social impact of the COVID-19 crisis on the Kingdom through 2025.

Respondents believed that COVID-19 is accelerating the advent of the “future of work” in the Kingdom and more than 65 percent see this as fundamentally positive. About 69 percent see the growing need for the retraining of employees as positive, spurring national adaptation to the new normal. However, the survey also revealed some concerns regarding the security of formal employment and self-employment, with 37 percent seeing the effect of the crisis as negative.

Most survey respondents (70 percent) expect education in the Kingdom to undergo a positive transformation with the adoption of new, innovative, and inclusive modes of learning.

Seventy-eight percent of the respondents believe that the impact of the pandemic on the health care in the Kingdom through 2025 will be highly beneficial.

Fifty-eight percent of respondents believe there will be a wide adoption of telemedicine services in the Kingdom in the near future, as patients gain greater comfort and confidence in this method of consultation with their health providers.

Most respondents believe the health crisis has accelerated the process of digital transformation in the country, particularly in the finance and retail sectors. Seventy-five percent of respondents see the anticipated wider prevalence of e-commerce as positive, and 89 percent see as positive increasing use of cashless payments for face-to-face transactions by 2025.

By 2025, 78 percent of respondents expect that COVID-19 will lead to a significant and welcome (83 percent) step change in government preparedness for future crises. Meanwhile, 68 percent of respondents anticipate a significant impact on government information-sharing and 65 percent anticipate a moderate, but positive change in the willingness of citizens to contribute toward government efforts.

Prince Faisal bin Abdullah bin Mohammed Al-Saud, chairman, Al-Aghar Group, said: “Saudi Arabia has a proud history of resilience and has thrived even in the most challenging situations. While this pandemic has severely affected us all, the survey results confirm the depth of our intention to use this current situation to accelerate our national progress.”

Rudolph Lohmeyer, partner and head of National Transformations Institute at Kearney Middle East, said: “The survey results clearly reveal the deep, optimistic resilience of the Saudi people and their implicit commitment to the Kingdom’s national transformation. Despite the near-term hardships caused by the crisis, respondents anticipate that the most significant medium-term impacts will be positive.”