The Ministry of Finance of the United Arab Emirates has established a partnership with LuLu Retail to integrate the business-to-business (B2B) e-commerce service, LuLuOn, into the federal government’s digital procurement framework. This collaboration aims to improve the effectiveness and clarity of government procurement operations.

Through this partnership, federal agencies will gain direct access to LuLu’s extensive product range via the government’s e-procurement system, utilizing a new feature known as ‘Punch Out.’ This feature is expected to significantly shorten the procurement process, reducing the timeline from as long as 60 days to just minutes, while also enhancing cost management and transparency in transactions.

The Punch Out tool allows users to browse, select, and finalize purchases from LuLu without leaving the procurement system, which streamlines workflow efficiency. This initiative aligns with the ministry’s goal to digitize procurement activities and expand the network of approved suppliers.

Under the agreement, federal entities will benefit from specialized institutional pricing on a wide range of products offered by LuLu, including food, groceries, and operational necessities. This support is backed by LuLu’s strong global sourcing and delivery capabilities. Currently, the federal catalog features over 120 000 products and services across 35 categories from more than 400 accredited vendors.

The Ministry of Finance is committed to enhancing this digital procurement platform through strategic partnerships between the public and private sectors, aiming to add value and innovation to government processes. Financial Affairs Minister of State, Mohamed bin Hadi Al Hussaini, emphasized that this strategic agreement is part of ongoing efforts to improve the government procurement system, aligning with the federal government’s vision for more flexible and sustainable business models. He stated that the partnership aims to provide diverse, high-quality options that meet the needs of federal entities while promoting transparency and competitiveness.

In February 2025, LuLu Retail Group announced plans to expand into suburban areas of major Emirati cities by establishing new retail locations.