Saudi Arabia’s Extra launches investment portfolio to diversify income

Saudi Arabia’s United Electronics Co. EXTRA, a leading consumer electronics and home appliance retailer, started an investment portfolio on Feb 6, 2014 to diversify its income, the company said in a statement on the website of Tadawul, the Saudi bourse.

Saudi Fransi Capital, a subsidiary of Banque Saudi Fransi, will manage the portfolio. The new portfolio will invest in the new equity listing or (IPOs) and will be financed by local banks and EXTRA’s own resources, according to the statement.

The new investment will be recorded as trading investment based on its fair value. The financial impact of the investment will appear in the company’s interim income statements.

EXTRA has over 35 retail stores across the kingdom. The stores offer international brands and products including TVs, computers, mobile phones, cameras and home appliances.

Saudi Fransi Banque is a lender part-owned by Credit Agricole SA.