Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is said to be in discussion to buy stakes in the UAE-based LuLu Hypermarket chain of retail outlets.
The sovereign wealth fund is reportedly in early stage talks with Yusuff Ali M.A., the Indian-born Chairman and Managing Director of LuLu Group International, over buying stakes in its subsidiary, LuLu Hypermarkets, the largest retail hypermarket chain in the Gulf region. While it was not clear how large a stake the PIF was seeking to buy or when it would materialize, talks that were initiated over a month ago are reportedly continuing.
LuLu Hypermarket, with retail outlets in all the six Gulf Cooperation Council (GCC) states, as well as in Egypt, India, Indonesia and Malaysia, and distribution companies located in India, the US, Europe, Middle-East and the Philippines, is among the most popular hypermarket brands in the region.
Lulu Group International, the multinational conglomerate with an annual turnover in excess of US$7.4 billion has a diversified portfolio that includes hypermarket operations, shopping mall development, manufacturing and trading of goods, hospitality assets, and real estate.
PIF, which manages $360 billion in assets, is the main financial backer of the kingdom’s ambitious Vision 2030 plan, which aims to transform Saudi Arabia by opening up the economy and diversifying its revenue sources.
Spearheaded by Saudi Crown Prince Mohammad bin Salman, the vision’s strategic plan includes among others expanding the kingdom’s hospitality, leisure, tourism and retail sectors to create millions of jobs for Saudi youth. On the retail side, PIF has already invested $500 million in e-commerce venture Noon, and indirectly funded the IPO of Saudi mall operator Arabian Centres 4321.SE .
Abu Dhabi state-owned holding company ADQ, with direct and indirect investments in more than 90 companies across key sectors of the emirate’s economy, is also said to have invested $1 billion in LuLu earlier this year.
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