With the retail FDI policy nowhere near its implementation, a number of foreign retail chains are tapping the Gulf and African economies for expansion.

Among them is the $4.5-billion EMKE Group’s shopping mall chain, Lulu Hypermarket, which, after dominating the Gulf Cooperation Council, is now expanding in Tunisia, Libya, Egypt, Algeria and Yemen, but not India. Others to have deferred their India entry include Carrefour, Metro, IKEA, Walmart and Tesco.

?The problems regarding allowing FDI in retail in India are all well known. But for us, countries like Libya, Egypt and Algeria are the new markets for expansion,? Yusuf Ali MA, promoter of EMKE Group, told FE. Yusufalli has been voted as the second richest NRI in the Gulf region with a personal wealth of around $2 billion. He serves on the board of Air India and is a member of the security advisory council to civil aviation. He is also director of other government bodies in Kerala and at the Centre.

Lulu International, which runs the shopping malls and hypermarket for EMKE Group, is not interested in expanding its India presence.

Sources said, in India, Lulu International has been developing a shopping mall in Kochi for the last four years, whose total investment till date has exceeded the initial outlay of R1,200 crore by R300 crore due to various delays.

The EMKE group now hopes to open its first hypermarket by December in Kochi. ?Let us see how the situation is by then for us to think of any further expansion here. For now, I am not looking at India, ” said Ali.

Outside India, around 90% of the workforce at Lulu Hypermarket comprises Indians from Kerala. Asked about possible solutions to the FDI problems in India, Ali said: ?The government knows what is to be done. It knows the advices and suggestions that have come in. I can only talk about the retail business in the Gulf region for now.” Commenting on the challenges faced by the retail sector, Ali said: ?Part of the problem lies with the high cost of real estate development. There are issues in the real estate sector. To have a successful retail chain, a retailer should also be the developer, like I am.?

The Lulu International shopping mall in Kochi will be spread over 17 acres, with a built-up area of 1.8 million square feet. The company is expected to initially flood its only hypermart with its own in-house labels. Lulu hypermarkets are successful in pushing the sales of their popular in-house brands like IKON ? range of kitchen, home and cooking appliances ? and LuLu brands of food products. These two brands are expected to enter markets in Kerala when the store opens for business towards the year end, sources said.

Ali is a part of a delegation of the Bahrain Economic Development Board (EDB), which is visiting India for attracting inward investment into Bahrain. EDB has already met most top Indian businessmen and the ministers concerned.