United Electronics Co.’s Extra's board of directors has agreed to expand to Egypt as the first destination outside of the Gulf region. They have also invested around EGP 1 billion directly into the expansion. The subsidiary company that they would be opening in Egypt would be owned by Saudi retail. The financing will be done through self-financing and borrowing.
Many reasons have made Egypt the perfect destination for expansion and among them is the fact that Egypt has the biggest consumer market in the Middle East, some of the other reasons are explained further throughout the article.
Extra is a company with almost 20 years of experience in the consumer electronics section. Established in the year 2002 in Saudi Arabia, The retail covers many electronic sections such as Televisions, computers, gaming, home appliances, and mobile communications.
Extra provides its consumers with easy payment options as well as a post-purchase warranty. Due to the huge popularity of the store in Bahrain, Oman, and Saudi Arabia, it is now planning to expand further than the Gulf area. In 2004 eXtra was also recognized as being among the top 100 brands in Saudi Arabia.
As mentioned above there are various reasons why eXtra choose to expand in Egypt, some of these reasons are as follows: