UAE retailer GMG has announced the acquisition of supermarket chain Aswaaq.
Aswaaq was acquired from the Investment Corporation of Dubai (ICD), which is the principal investment arm of the government of Dubai.
The acquisition includes all of Aswaaq’s companies operating in retail, trading, and properties.
This acquisition adds 22 supermarkets to GMG’s retail network.
In April 2022, GMG acquired Géant operations in the UAE from Urban Foods by Dubai Holding, which added 18 hypermarket and supermarket outlets to GMG’s portfolio.
The company recently announced plans to double its global workforce by 2025. Currently, GMG employs approximately 8,700 people across all its verticals, and its workforce is estimated to grow by around 10 per cent after the acquisition, a statement said.
Mohammad A. Baker, deputy chairman and CEO of GMG, said: “this acquisition marks a strategic milestone in our operations, as we not only expand our food retail portfolio but also add Aswaaq’s companies operating in retail, trading, and properties. Our acquisitions and expansions come with a purpose-driven objective – to contribute to the UAE government’s National Food Security Strategy and enhance and add value to our consumers’ well-being. We want to cover the entire consumer journey from creating concepts and brands to retailing our home-grown and international partners’ brands, brought together with an overarching commitment to improving people’s lives through active living, nutritious food, and good health.”
The acquisition is part of GMG’s strategy to create and manage neighbourhood malls and supermarkets. Mr Baker added that “We aim to take the concept of community malls to greater heights by nurturing the surrounding communities, regularly engaging with them, and creating opportunities for the local communities to thrive.”
Khalifa Al Daboos, deputy CEO, Investment Corporation of Dubai, said: “We, at ICD, are very proud of all that has been achieved at aswaaq in the last 12 years. We believe that aswaaq and its employees will thrive and grow under the guidance of a diversified family-owned business with immense experience and a glowing track record in the retail sector, where Aswaaq will play the leading role in GMG’s push to become the main player in UAE food retail.”