Lulu to invest Dh2b in Egypt's retail industry

Ibrahim Ashmawy and Yusuffali M.A. at the signing ceremony in Abu Dhbai on Wednesday. - Supplied photo

Egypt is the new 'destination for investments' and gateway to African continent, a top trade official said as the UAE-based Lulu Group is set to pump  Dh2 billion in the retail sector.
Ibrahim Ashmawy, deputy minister and chairman of Trade Development Authority in Egypt's Ministry of Supply and Internal Trade, on Wednesday signed the protocol agreement with Lulu Group chairman Yusuffali M.A. to open four new hypermarkets in the next two years. This is in addition to the four hypermarkets in the pipeline, taking the total number to eight by 2020.
Ashmawy said the agreement is realised after the meeting between Egyptian Prime Minister Mostafa Madbouly and Yusuff Ali in Cairo last year. 
"This is a game-changer in sector of internal trade. We know Lulu Group is a major player in retail business. So we knocked their doors for more expansion, investment and presence in Egypt. The pace of growth in the Egyptian market specifically in the retail is huge. This agreement is starting point and we are hoping for more investment from Lulu and others," Ashmawy told Khaleej Times. He noted Egypt has 2.6 per cent population growth rate and consumers with high purchasing power - aspects for retailers to thrive.
"We are seeing unprecedented growth rate in Egypt's retail sector of 36 per cent per annum."    
Ashmawy said with an improved investment climate and ease of doing business, it is the best time to invest in Egypt. "We offer incentives and concessions under the investment law. We offer long-term lease and grace period. We, on behalf of all government departments, act as one-stop shop and deal with all the developers and investors."
"They don't have to knock at doors of other government departments but with one-stop shop can get all required licenses and ease any hurdles faced in the market. More investors need to come and see things on the ground."
Ashmawy promised high return on investments, increased turnover and added value to company's portfolio. "The government is very stable. The country has opened up doors for more investments. We have oil and gas, petrochemicals, retails and more to offer. We also have bilateral and multilateral ties with African nations. So for Lulu, Egypt can be a base to expand in Africa."
Yusuffali praised the all-out support by Egypt leadership.
"The excellent opportunities and facilities being offered by the government to investors will contribute to the growth and development of Egypt. We hope to create employment opportunities for more than 3,000 Egyptians through new hypermarkets."
Lulu has one hypermarket in Cairo and will opening eight more in Al Narges, Al Rehab City (both in New Cairo), Sixth October City and Al Obour City. - ashwani@khaleejtimes.com
 

Ashwani Kumar

Ashwani Kumar is a versatile journalist who explores every beat in Abu Dhabi with an insatiable curiosity. He loves uncovering stories that are informative and help readers form their own opinions.

ashwani@khaleejtimes.com