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GMG expands portfolio, acquires aswaaq from ICD

The acquisition adds 11 community malls and 22 supermarkets to GMG’s rapidly expanding retail network

GMG, a well-diversified conglomerate, on Monday said it has acquired retail major aswaaq from the Investment Corporation of Dubai (ICD), an investment arm of the government of Dubai, including its companies operating in retail, trading, and properties.

The acquisition includes 11 community malls and 22 supermarkets, making GMG one of the largest operators of community malls in the UAE, as well as trading and property companies.

“This acquisition is a strategic move for us which will enhance the group’s reach to a wider consumer base. We have added almost 700 talented employees to our group through this acquisition,” Mohammad A. Baker, deputy chairman and CEO of GMG, told Khaleej Times on Monday.

In April 2022, the family-owned business acquired Géant operations in the UAE from Urban Foods by Dubai Holding, adding 18 hypermarket and supermarket outlets to its expanding retail footprint.

The group currently operates in 58 cities across 12 countries with investments spanning four key verticals – sports, food, consumer goods, and health and beauty.

GMG employs approximately 8,700 people across all its verticals, with its workforce estimated to grow by around 10 per cent after the acquisition. To date, GMG has introduced over 120 brands and plans to double its global workforce by 2025.

Working across the Middle East, North Africa, and Asia, GMG has introduced more than 120 brands into its markets. These include notable homegrown brands such as Sun & Sand Sports, Dropkick, Supercare Pharmacy, Farm Fresh, Klassic, and international brands like Nike, Columbia, Under Armour, Timberland, Vans, Mama Sita's, and McCain.

A study released by Alpen Capital projected that retail sales in the UAE are forecasted to grow at a CAGR of 5.1 per cent between 2022 and 2026.

“We continue to look for opportunities and it would be both organic and inorganic ways of expansion. Recently, we announced our Asia-Pacific headquarter in Malaysia and soon going to open Africa headquarters in Cairo,” said Mohammad A. Baker.

He said the group aims to take the concept of community malls to greater heights by nurturing the surrounding communities, regularly engaging with them, and creating opportunities for the local communities to thrive.

“Our acquisitions and expansions come with a purpose-driven objective — to contribute to the UAE government’s National Food Security Strategy and enhance and add value to our consumers’ well-being," he said.

"We want to cover the entire consumer journey from creating concepts and brands to retailing our home-grown and international partners’ brands, brought together with an overarching commitment to improving people’s lives through active living, nutritious food, and good health,” he added.

Khalifa Al Daboos, deputy CEO of the Investment Corporation of Dubai, believes that aswaaq and its employees will thrive and grow under the guidance of a diversified family-owned business with immense experience and a glowing track record in the retail sector, where aswaaq will play the leading role in GMG’s push to become the main player in UAE food retail.

— waheedabbas@khaleejtimes.com