Cairo-born creative agency Media Republic is establishing an on-the-ground presence in Saudi Arabia under a strategic partnership with Saudi investment firm Arsan Global, the two said in a joint statement (pdf). Media Republic will establish a regional hub in Riyadh under the agreement, which Media Republic Chairman Waseem El Tanahi told EnterpriseAM was a necessity given the growth in the market.

But Media Republic is no stranger to the Kingdom, having been active in the country — albeit at a distance — for around 10 years, we were told. Simply managing the company’s business from outside the country is no longer a viable model, especially as having boots on the ground to understand local culture and consumer behavior is the most valuable currency in the advertising sector today, El Tanahi said.

Why it matters: While others are working to keep operations in Cairo to reduce costs, Media Republic decided to build a full-service team in Riyadh from the start, El Tanahi told EnterpriseAM, noting that competition in the Saudi market is no longer just about price, but the ability to execute quickly and locally.

What’s next? Saudi Arabia is just the start, according to El Tanahi, who told us that the company aims to establish itself as the leading agency in the Kingdom, while using its Riyadh base as a hub to export its services to the rest of the GCC.

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