Prime Minister Anthony Albanese has invited a United Arab Emirates retail chain to come to Australia to break up the Coles and Woolworths duopoly.

On his way back from an 11-day diplomatic mission to engage with global leaders in New York and London, he had a meeting with LuLu Hypermarket chairman Yusuff Ali in Abu Dhabi.

LuLu Hypermarket is one of the largest retail chains in the Middle East, with more than 260 stores across the Gulf.

Albanese confirmed he had formally asked Ali to bring LuLu to Australia to drive greater competition.

“I want to see more competition. That’s one of the things that it can bring,” he told reporters in Abu Dhabi.

“This is a significant company. They are the largest throughout the Middle East. They’re the second-largest in Saudi Arabia.

“We’re aware that Aldi has established itself in Australia, and as a prominent entity involved with Australia, I am eager to witness greater competition.”

According to the Australian Competition and Consumer Commission’s March estimate this year, Woolworths holds a 38 percent share of all supermarket sales, Coles has a 29 percent share, and Aldi accounts for nine percent.

It also found Australia’s supermarkets are among the most profitable in the world as grocery prices jumped 24 per cent in five years. 

LuLu Hypermarket imports some of its products from Australia, with beef and Tim Tams among some of the items retailing for cheaper in the UAE.

The retail giant hosted the prime minister with great honor during a visit to one of its outlets, showcasing Australian products alongside display flags.

Ali said he was “very happy” to welcome Albanese.

“I feel very honored and grateful to his excellency for the visit, for showcasing and highlighting our Australian products, as well as the top-quality goods that Australia exports, which we are importing,” he stated.

Albanese is marking the occasion of a new free trade agreement with the UAE, which will eliminate tariffs on 99 percent of Australian exports and boost investment from the UAE’s sovereign wealth fund in Australia.

“What that does is open up all of the markets of the Middle East through the United Arab Emirates that are an important trading partner for Australia,” he said.

“This is important to deliver for Australian businesses, for Australian consumers and for our economy.”