May 19, 2008, 0:23 GMT
Sharm el-Sheikh, Egypt - German business-to-business, self- service wholesaler Metro Cash & Carry International will open its first store in Egypt by late 2009, Chairman Frans WH Muller said Sunday.
The German firm would become the first international wholesale business to set up operations in Egypt.
The announcement was made at a joint press conference with Egyptian Trade and Industry Minister Rashid Mohamed Rashid on the sidelines of the World Economic Forum on the Middle East, held in the Red Sea resort of Sharm el-Sheikh.
Metro Cash & Carry International, the world's leading wholesaler of its kind, sees a potential for medium-term expansion in Egypt of up to 10 stores with an expected investment of around 23 million dollars per store.
'We are delighted with Metro's decision to enter Egypt and see it as a testament to the strength and competitiveness of the Egyptian economy,' Rashid said.
With the announcement, Egypt becomes the second country after Morocco in the Middle East and North Africa and the 30th in Metro's worldwide distribution network, including Spain, China, Japan and Russia.
'The company is likely to operate in Egypt under the brand name 'MARKO' and will offer a range of up to 20,000 food and non-food products, almost entirely sourced - up to 90 per cent - from local producers and suppliers,' according to a company press release.
Being a wholesale business, the company targets hotels, restaurants, caterers as well as medium-sized retailers.
There were 253 German companies operating in Egypt as of February 2008 with a total German investment of 280 million dollars.
Among those investors are Bavarian Auto group - a licensee of BMW - and Daimler as well as consumer-products group Henkel and electronics firm Siemens.
Total trade between Egypt and Germany rose by 8 per cent to 4.5 billion dollars in 2007 from the previous year, according to data released by Egypt's Trade and Industry Ministry.
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