Electrolux, the global appliance leader since 1919, is well-known for its focus on quality, sustainability and innovation. Besides this, the brand conveys Swedish values to homes worldwide – including in the Middle East where it has spent 20 years establishing a solid foothold.

The company recognized the potential of the Middle East market due to its growing population, rapid urbanisation, and rising disposable incomes.

“The Middle East is a very attractive, challenging, and exciting region to work in. There is accelerating demand for our solutions and an openness to innovative technologies, coupled with a strong commitment to traditions and culture,” says Anna Vasileva, Electrolux People Business Partner Director, Asia-Pacific, Middle East and Africa (APMEA).  

 

ONBOARDING THE FIRST ELECTROLUX TEAM IN THE MIDDLE EAST

Back in 2011, Electrolux collaborated with Business Sweden when the company established its Middle East business in Dubai.

Business Sweden was chosen for its tailored service offering which included employment and HR administration, co-working space and ability to facilitate local contacts – all part of the Business Incubation & Operations (BI&O) portfolio.

“While we had a team in place, we couldn’t provide local employment at first. The complexity of the incorporation process in the Middle East meant that we faced the prospect of long delays,” continues Anna Vasileva.

The solution effectively addressed the issue of employing local personnel in the UAE. In addition to standard payroll services, Business Sweden's BI&O services provided essential support for obtaining residence visas for the local Electrolux team.

This is a critical factor in the UAE as without such documentation, employees are unable to reside in the country, open bank accounts, lease apartments or enroll children in schools.

 

OVERCOMING THE COMPLEXITY OF LOCAL ESTABLISHMENT

The establishment process in the UAE can be lengthy, often taking over a year, with an additional year for bank accounts to be opened. This means that a pre-establishment analysis becomes a key factor.

According to Anna Vasileva by leveraging Business Sweden’s BI&O services, Electrolux could quickly focus on their core business activities in the local market.

“We appreciate Business Sweden’s local in-depth knowledge of markets. They kept us up-to-date on any changes in local employment laws and regulations and ensured that we stayed compliant. We were always happy to have Business Sweden facilitating the back-end of employment and HR operations so our representatives could focus on customer engagement and commercial activities in the region.”

“Business Sweden has also been a solid partner for us in terms of developing local contacts and helping us to build strong relationships with companies across the region,” adds Anna Vasileva.

 

GEARING UP FOR AFRICA EXPANSION

Electrolux established its office for the Middle East and Africa in Dubai. This strategic location allows the company to oversee its operations and strengthen its presence in the region.

The next step was to expand locally in Africa, now using Business Sweden's employment & HR services and co-working space in Kenya, but also gaining insights from tailored market analysis. In addition, Electrolux attended several events and seminars jointly organized by Business Sweden and the Swedish Embassy in Nairobi.

Meanwhile, during the UAE’s declaration of 2023 as the Year of Sustainability, Electrolux showcased its global initiative “The Better Living Program” focusing on 100 ambitious actions that Electrolux pledges to implement across the categories Better Eating, Better Garment Care, Better Home Environment, and Better Company.

Electrolux has also been involved in Dubai Can, an initiative that aims to reduce plastic waste. Through Electrolux's water fountain, installed in June 2022, a total of 194,082 plastic water bottles have been saved.

“Business Sweden supported us at different stages of our growth journey in the region – from our first market entry to the growth breakthrough ideas when we had reached a plateau and then further collaboration when it came to bringing our sustainability values to the region,” Anna Vasileva, concludes.

 

Challenge

Electrolux needed help to tackle the complexity of setting up local entities, hiring and managing local employees in the UAE to gain a foothold in Middle Eastern markets.

Solution

Business Sweden’s service portfolio Business Incubation & Operations (BI&O) was tailored to Electrolux’s needs covering a full spectrum of support. Besides employment & HR, the company received market analysis, a co-working solution, local contacts and networking opportunities.

Result

With Business Sweden’s help, Electrolux managed to expand in the Middle East using the UAE as its first point of entry. Business Sweden helped to ensure compliance with local rules and regulations and paved the way for further expansion into African markets, promoting the company’s sustainability values.

Value impact

The collaboration allowed Electrolux to capture its vast potential across the Middle East with minimized risk, faster time to market and local support at every step – from establishment to administrative tasks and compliance to building relationships with local customers, partners and stakeholders.

ABOUT ELECTROLUX

Electrolux Group is a leading global appliance company that has shaped living for the better for more than 100 years. The company reinvents taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society.

Under its group of leading appliance brands, including Electrolux, AEG and Frigidaire, the company sells household products in around 120 markets every year. In 2023, Electrolux had 45,000 global employees.