Abu Dhabi-based retail chain, Lulu Group, is planning on investing $500 million in two phases in Indonesia. The first phase of the project will entail a $300 million investment toward the opening of the group’s first hypermarket by the end of this year, and further investments will be made to build a total of 15 hypermarkets, warehousing facilities, and central logistics in the country by the end of 2017.

 

“These projects are likely to generate more than 5,000 job opportunities for Indonesians and to train them on all levels. The fact that we are going to Indonesia with our Halal hypermarket concept is giving us the encouragement to look for a wider market segment there,” said Yousuffali M.A., managing director of LuLu Group.

 

As part of the project, and to support the agriculture sector in the country, Lulu is also planning to establish a contract farming framework to guarantee a steady supply of high quality foods and products for their retail outlets.

 

This is not Lulu’s first foray into Southeast Asia. In May 2014 the group announced its plans to build 10 hypermarkets across the country of Malaysia with the goal of attaining a 20% share of the market in the country.

 

Currently, Lulu operates 117 retail stores across the UAE, Bahrain, Oman, Kuwait, Qatar, Saudi Arabia, Yemen, Egypt and India.