Saudi Arabia’s United Electronics Co. shelves plans for Egypt expansion

United Electronics Co., known as eXtra, has decided to discontinue its expansion plans in Egypt, it said on Monday, following a feasibility study, according to Reuters.

The expected negative financial impact of shelving the expansion in Egypt is about SR38 million ($10.13 million), the company said in a bourse statement.

“After reviewing the feasibility of the company continuing to move forward with external expansion in the Arab Republic of Egypt, United Electronics Co. announces that the Board of Directors has decided … to discontinue the company’s plans to expand in Egypt,” the statement said.

The Saudi consumer electronics company had announced plans to establish its first subsidiary outside the Gulf Cooperation Council in Egypt in 2021 with an initial investment of 1 billion Egyptian pounds ($32.41 million), which was worth $63.6 million at the time.

Egypt’s already vulnerable economy has been shaken further by Russia’s invasion of Ukraine, which rocked tourism, raised commodity prices and prompted foreign investors to pull about $20 billion out of its financial markets.