UK supermarket chain Tesco will vastly increase its presence in the Middle East over the coming months, as it signs new exclusive partnerships with local retailers for supplying its own branded products.

The partnerships are being formed by MENA Holdings Group, which is Tesco’s exclusive agent of private label for the Middle East and North Africa (Mena) region. “We are already live in several countries including Lebanon, Cyprus and the UAE,” says Darren Craven, group CEO of MENA Holdings Group. “We have an aggressive roll-out plan over the next 12 weeks; there are more to go live: Saudi Arabia, Malta, Oman, Morocco and Bahrain.”

The move by Tesco, which is the third-largest supermarket chain in the world behind the US’ Walmart and France’s Carrefour, is part of its strategic plan to gain exposure in international markets by working with local partners. “International export is something we have been doing for 10 years, although we are new to the Middle East,” says Gareth Bowen, export business development manager at Tesco. “[Joining with local partners] is aligned with our strategy of a more disciplined approach to capital investment overseas. When you work with local retailers, you are tapping into their knowledge and expertise.”

Tesco’s most recent operation to start is in the UAE, where Choithrams has signed an agreement to become the only retailer in the UAE authorised to stock the full range of Tesco-branded products. “The Tesco product range is one of the largest on the planet, the full range is about 45,000,” says Craven.

The deal means Choithrams will now sell Tesco own-branded products from the UK that will compete with branded goods. “Tesco carries strong brand equity, we have a large number of British shoppers and people who visit Britain, so there is a strong affinity with Tesco and British products,” says Dinesh Pagarani, special projects director at Choithrams. “Tesco brings a lot of products from one source that will offer brand alternatives at more competitive prices and more variety.”

Choithrams has already started selling Tesco products. “Sales have already exceeded expectations,” says Kishore Pagarani, managing director at the supermarket chain. “Our main thrust will be in September and October, when people come back from their holidays. By then we expect to have more than 1,000 products.”

The UK exports about £10bn ($17bn) of food and beverage products each year and the UAE market is becoming an important destination for exporters. “The UAE is a really important market,” said Edward Hobbart, UK Consul General to Dubai, speaking at the Choithrams and Tesco launch event in Dubai on 7 May. “We have seen growth of 14 per cent this year, so it is an exciting market for UK exporters to be engaged with.”