Saudi Arabia's Abdullah Al Othaim Markets Company has announced a geographical expansion plan in Egypt through opening new stores across the country at a total investment of 144 million riyals.
"Whereas the Company found that the current opportunity and the economic conditions of the Egyptian market is favorable and encouraging in light of the continued growth in the population and increasing demand for goods and services, the Board of Directors has approved on 15/12/2015 the initial plan of geographical expansion through opening new stores in the Arab Republic of Egypt, with an investment amount equivalent to SAR 144 million over the next three years, " a statement by the company read.
It is expected that the commercial activities of the company will start during the first quarter of 2016.
According to the approved business plan, the company expects to start realizing operational profits from the third quarter of 2017.
It is worthy to be noted that the company will finance its aforementioned expansion plan through self-financing and borrowing.
The company will be investing in food retail and whole sale activities.
It had established a subsidiary company in Egypt in 2011 but has not engaged in any commercial activity since then.