Saudi retailer scraps plans to set up shop in Egypt: Saudi electronics retailer Extra, formally known as United Electronics Company, has shelved plans to establish a subsidiary in Egypt, it said in a disclosure to the Saudi stock exchange yesterday. The board of directors made the decision on Sunday after reviewing a feasibility study, the statement reads, without giving color or detail on the rationale behind the decision. “Further announcements will be made to explain any material developments in this regard,” the statement says.

Background: Extra said in December 2021 that it would spend some EGP 1 bn to launch a fully-owned subsidiary in Egypt, a move that would have marked its first expansion outside the GCC. The Tadawul-listed company sought to acquire a 10% market share within a decade as it looked to tap the biggest consumer market in the Middle East.

The losses? “The expected negative financial impact of discontinuing the company's expansion plans in Egypt is about SAR 38 mn,” according to the statement. That’s the equivalent of c. EGP 314.6 mn. The company’s net income slipped 13% y-o-y in 1Q 2023 despite rising sales, according to preliminary figures released by the company last month.

The news got ink internationally:Reuters.

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