Modon, LuLu to build retail facilities in UAE and Egypt

Abu Dhabi’s Modon Holding has partnered with Lulu Retail Holding, the Middle East region’s biggest grocer, to build and operate hypermarkets and other retail facilities in the UAE and Egypt.

By leveraging its expertise in large-scale project development, Modon Holding will collaborate with LuLu to establish a network of community retail outlets, including hypermarkets, supermarkets, and other retail stores.

The outlets will be located within Modon’s UAE and Egypt portfolios, which are projected to house millions of residents.

The two entities will also work together to identify high-potential locations for retail development, deploy cutting-edge retail technologies, and optimise logistics infrastructure to deliver superior customer experiences.

“We are excited to collaborate with Modon Holding as we continue to expand our footprint. The MoU will allow us to offer unparalleled shopping experiences that blend quality and innovation while catering to the diverse requirements of the communities in the UAE and Egypt,” said Yusuff Ali, chairman & managing director of LuLu Group.

Founded in 1974, Lulu Retail plans to open about 90 stores across the GCC region over the next five years, with Saudi Arabia and the UAE slated as its main expansion markets. The hypermarket chain operator is looking to raise $1.43bn from its initial public offering in Abu Dhabi.

Meanwhile, the partnership marks an important step in Modon Holding’s broader growth agenda, which includes actively targeting high-potential sectors for its projects’ expansion.

Earlier in October, the Abu Dhabi developer formed a joint venture with Candy Capital, the private family office of British luxury real estate investor Nick Candy, to build a series of high-end projects in the Middle East and North Africa, focusing on residential, commercial, and hospitality properties.

The newly established venture combines Candy Capital’s unparalleled expertise in ultra-luxury real estate with Modon’s robust development and operational capabilities and financial strength.

Abu Dhabi wealth fund ADQ appointed Modon as the master developer of a vast project to develop a city at Ras El Hekma on Egypt’s north coast.

The real estate behemoth will lead the development of the envisaged city’s first phase, which will consist of 50 million square meters. It is partnering with Egyptian, UAE, and international developers to develop the Ras El Hekma city master plan.

Read: UAE’s Lulu Retail sets IPO price range of up to Dhs2.04 per share