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$37 billion dollars, that’s how much investors fought to pour into this supermarket chain from the Middle East, making it the most sought-after non-government IPO in the UAE in the last 10 years.
30 years ago, a young Yusuf Ali who just arrived from India opened the first Lulu supermarket in Abu Dhabi. Today, Lulu is the largest supermarket chain in the Middle East, beating Carrefour and Spinneys in market share, revenue, and store count. With more than 240 stores across 23 countries, Lulu employs more than 65,000 people, and serves over 1.6 million customers every single day. But how did a young man with no money or connections build one of the largest retail chains in the Middle East? What made Lulu Hypermarkets an $8.4 billion powerhouse? And what does its record-breaking IPO mean for its global expansion?
The story of Lulu starts with M.A. Yusuff Ali. Born in 1955 in a small village in Kerala in India, Yusuff grew up in a modest household. At just 15, he moved to Gujarat for college, where he studied business. But he had bigger dreams. In 1973, at 18, Yusuff left India and arrived in Dubai on a ship. He traveled 5 hours to Abu Dhabi to work for his uncle’s business. Yusuff would sleep on the shop’s roof, and had to pour water on the concrete to make it cool enough to sleep on. At the time, the UAE was just beginning its oil boom, and the demand for consumer goods was rising fast. Yusuff saw an opportunity. He wanted to build a supermarket that catered to the growing expat community—especially Indians, Pakistanis, and Filipinos—who needed familiar products from home.
In 1995, and at 34, Yusuff launched the first Lulu Hypermarket in Abu Dhabi. But this wasn’t just a regular supermarket. He introduced a concept that was rare in the region at the time: one-stop shopping. At Lulu, customers could buy groceries, electronics, clothing, and even gold—all under one roof. The idea took off, and soon, Lulu became a household name in the UAE. By the early 2000s, Lulu had expanded across the Gulf, opening stores in Saudi Arabia, Oman, Bahrain, and Qatar.
But success didn’t come without challenges. The Gulf retail market was already dominated by big names like Carrefour and Spinneys. To stand out, Lulu focused on three key strategies: Affordable Pricing – Lulu made sure its prices were lower than competitors, attracting budget-conscious shoppers. Global Sourcing – The company set up sourcing offices in over 22 countries to import fresh produce, seafood, and groceries directly—cutting out middlemen and keeping costs down. Customer Experience – Lulu stores weren’t just about shopping; they were designed like entertainment hubs. Spacious aisles, vibrant food courts, and live cooking stations made the experience more enjoyable.
As Lulu Hypermarkets became more popular, Yusuff took things a step further. Instead of just opening standalone stores, Lulu started building its own malls. The company launched Lulu Mall in Kerala, India, in 2013—at the time, it was the largest shopping mall in India. More Lulu Malls followed in other cities, bringing international brands, cinemas, and amusement parks to the region. This strategy allowed Lulu to control both the retail space and the customer experience, boosting profits and brand loyalty.
By the 2010s, Lulu was no longer just a Middle Eastern brand—it was going global. In 2016, Lulu entered Malaysia, opening its first hypermarket in Kuala Lumpur. In 2021, the company made a bold move into Egypt, investing over $1 billion in new stores. Lulu also expanded into Indonesia and the Philippines, tapping into Southeast Asia’s booming retail market. Today, Lulu employs over 65,000 people and serves 1.6 million customers every day—making it one of the fastest-growing retail chains in the world.
In November 2024, Lulu Retail Holdings made history by launching the largest IPO in the UAE that year, raising a massive $1.72 billion. The initial share price was set at 2.04 dirhams ($0.5554), and the IPO was oversubscribed more than 25 times, attracting a record $37 billion in demand from local, regional, and international investors. The IPO was so popular that Lulu increased the offering size from 25% to 30% due to overwhelming interest from foreign and regional investors. This listing officially made Lulu the 100th company to trade on the Abu Dhabi Securities Exchange (ADX). The event was marked by a bell-ringing ceremony, attended by UAE Minister of Investment Mohamed bin Hassan Al Suwaidi and Lulu’s founder Yusuff Ali M.A.
But why was this IPO such a big deal? First, it’s the massive Investor Demand – Over 82,000 retail investors participated, with a record-breaking 50,000 new investor registrations in just 16 days. Second, there was strong market confidence. Lulu’s IPO was the most oversubscribed non-government offering in the UAE in the last decade. Finally, this will fuel Expansion Plans. With the IPO proceeds, Lulu aims to open 91 new stores in the coming years, further solidifying its dominance in the retail sector. Saifee Rupawala, the CEO of Lulu Retail, called the IPO a “historic milestone”, emphasizing that despite going public, Lulu’s main focus remains customer satisfaction and retail excellence. With its new capital and growing investor base, Lulu is now positioned to become an even bigger force in global retail.
Beyond business, Lulu is also known for its corporate social responsibility. During the COVID-19 pandemic, Lulu donated millions of dollars in food supplies and medical equipment across the Middle East and India. The company also supports education programs and charity initiatives, particularly in India, where Yusuff has built hospitals, schools, and even a rehabilitation center for the disabled.
And Lulu isn’t slowing down. The company plans to expand further into Europe, with upcoming stores in Spain and Italy. In India, Lulu is investing $2 billion in new malls and supermarkets. With e-commerce booming, Lulu is also growing its online shopping platform, offering home delivery and digital payment options. To compete with Amazon and Noon, Lulu knew it had to adapt. It’s not just about walking into a store and picking up groceries anymore, it’s also about shopping from your phone, getting same-day delivery, and paying however you want.
Beyond that, Lulu started using AI and data analytics to track what people are buying the most, so they can: Keep popular items in stock all the time. Reduce waste by ordering just the right amount of fresh produce. And speed up restocking, so you don’t walk in and find empty shelves. This means customers are less likely to find empty shelves when they visit a Lulu store or shop online. Lulu also made paying for things super convenient. Now, you can pay with your phone using the Lulu digital wallet, scan & pay with QR codes instead of swiping a card and Buy Now, Pay Later, which means you can grab that new TV or smartphone today and pay for it in installments.
All these upgrades paid off, Lulu’s online sales have TRIPLED since 2020 as more and more people are shopping from their phones and getting deliveries instead of going to the store. In many ways, Lulu’s rise is similar to Walmart’s. It started as a small store but became a global powerhouse through smart pricing, strategic expansion, and customer-first thinking. Now, with its IPO, Lulu is entering a new phase, one that could turn it into a global supermarket giant. The big question now is: will Lulu’s IPO give it the boost it needs to take on the world? If Walmart and Carrefour can dominate the retail industry, maybe Lulu has what it takes to do the same. Maybe the real question is… Is the world ready for Lulu?