EGP 1 billion invested by the electronic retail “eXtra Saudi” to expand in Egypt ✽

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:

1. Egypt has the largest consumer market: Egyptians love to consume and buy products whether online or offline that is why it is wise to expand there with the electronics sector since most Egyptians find it interesting to follow the latest technologies and electronics available in the market.
2. The growth of the Egyptian economy: Over the past few years the economy of Egypt has seen growth even throughout the pandemic and this has shown promising expectations for future growth.
3. The demographic structure: nearly 60% of the Egyptian population is aged below 30 years old which is the ideal age category of the target market for the electronics sector.
4. The size of the electronics market: The Egyptian market size for electronics is very large and nearly 70% of it is managed by independent retailers while only 30% by organized retailers. eXtra found it as a great opportunity to provide the Egyptian market with the be consumer experience through an experienced organized retailer.