eXtra, the Saudi consumer electronics company, has announced that it will no longer pursue expansion plans in Egypt following a feasibility study, citing negative financial impact.
The company had initially planned to establish its first subsidiary outside the Gulf Cooperation Council in Egypt in 2021 with an investment of 1 billion Egyptian pounds ($32.41 million).
However, the company has decided to discontinue its plans after reviewing the feasibility of the project. The expected negative financial impact of the shelved expansion in Egypt is approximately 38 million riyals ($10.13 million), according to a statement by the company.
The decision comes amid a challenging economic climate in Egypt, further exacerbated by Russia’s invasion of Ukraine, which impacted tourism and raised commodity prices, leading foreign investors to pull around $20 billion out of its financial markets.
Gulf states have previously stepped in to support Egypt, but recent policy changes tie financial investments to meaningful reform and currency stabilization efforts.