Prime Minister Anthony Albanese has invited LuLu hyper-market, a major Middle Eastern supermarket chain, to enter Australia and boost competition for the grocer sector.

The new United Arab Emirates (UAE) and Australia free trade agreement will come into force this week, after Albanese met LuLu chairman, Yusuff Ali, while visiting the Abu Dhabi store on Monday.

“We need more competition in the Australian supermarket sector,” Albanese said.

“Our first trade deal in the Middle East provides Australian businesses with a competitive advantage in this fast-growing region. More trade means more opportunities for economic growth.”

The deal will see more than 99 percent of Australian exports enter the UAE duty free, saving exporters an estimated $185 million in the first year. The UAE is already Australia’s biggest Middle Eastern partner, with a two-way trade worth $12.3 billion in 2024.

Trade and Tourism Minister, Don Farrell said the removal of tariffs will “open more opportunities for Australian businesses and create more high-paying local jobs for Australian workers”.

LuLu Hypermarket has over 250 stores across the region and sells lower shelf prices for Australian products compared to domestic grocers like Coles and Woolworths.

Coles and Woolworths currently dominate the local market, but they will have to adapt when the giant Emirati hypermarket chain enters Australia.

Photo: LuLu hypermarket Muscat Oman by David Lisbone found HERE and used under a Creative Commons licence. The image has not been modified.