GMG acquires Aswaq, a subsidiary of the Investment Corporation of Dubai

The “GMG” group has acquired the “aswaaq” company of the Investment Corporation of Dubai, the main investment arm of the Dubai government, according to a statement issued by the group today, Monday.

The company did not disclose the value of the deal, but said that the acquisition includes companies operating in the retail, trade and real estate sectors, adding 11 shopping centers and 22 supermarkets to GMG.

The move comes nearly a year after the group concluded a similar deal, as in April 2022 it acquired the “Jian” brand stores from the “Urban Foods” company of the “Dubai Holding” group, according to which it added 18 stores to its retail network.

“GMG” specializes in selling, distributing and manufacturing products for a number of brands specialized in the sports, food and health sectors, while “aswaaq” operates in the management and operation of a chain of supermarkets and shopping centers.

In 2020, GMG acquired Royal Sporting House, a company that sells sports retail products to many brands in Singapore and Malaysia, as part of its plan to expand its presence in the main Asian markets, and last year it expanded its reach in the continent by acquiring all Exclusive stores for “Nike” products of the “Sotel” company.

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The growth of the retail sector in the UAE stimulated the acceleration of the recent acquisition deal, as the company stated that the sector is expected to grow by approximately 6% in the next five years, to reach a value of approximately $37.7 billion by 2027, as a result of the rise in per capita income, the prosperity of the tourism sector, and the increasing number of residents. and implementation of new business projects.

GMG operates more than 120 international brands in the markets in which it operates, and has announced plans to double the number of its employees by 2025, as it currently employs approximately 8,700 employees, and the employment rate is expected to increase by about 10% after the acquisition.

According to Mohammed Baqer, Vice Chairman and CEO of GMG, the new acquisition represents a “strategic milestone” in the company’s operations in order to contribute to the UAE’s national strategy for food security.