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Saudi leading electronics retailer chooses Egypt for first expansion outside GCC

Saudi leading electronics retailer chooses Egypt for first expansion outside GCC

Saudi leading electronics retailer chooses Egypt for first expansion outside GCC

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RIYADH: Saudi-based United Electronics Co, known as extra, to inject one billion Egyptian pounds ($64 million) as an initial investment for a fully owned subsidiary in Egypt, marking its first expansion outside the Gulf Cooperation Council, Arab News quoted the company, as saying, in a bourse filing.

The expansion in Egypt will be financed entirely from the company’s own resources.

Extra is targeting a market share in Egypt of about 10 per cent over the next decade, company’s CEO told CNBC Arabia.

The supply chain crisis affected the increase in the company’s operations costs, Muhammad Jalal added.

The company has sufficient stocks to meet the needs of customers, but there is a shortage of phones and computers, he told Asharq News.

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The market size by value in Egypt is SR25 billion ($6.6 billion) and it is accelerating compared to other markets.

Although the per capita consumption in Egypt is less than in Saudi Arabia, the significant population of more than 100 million would make up a market size that is close to the one in the kingdom.

Extra Saudi took six years to break even, in Egypt, we expect to reach profitability much faster than this, Jalal said.

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