Following the signing of its first-ever franchise agreement with Dubai-based GMG, the largest sportswear retailer in the United Kingdom, JD Sports Fashion, announced on Monday that it would launch roughly 50 stores in the Middle East.

The trainers and sportswear retailer claimed that by entering the area, it is pursuing its expansion strategy in underserved markets.

Locations in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt will be the main emphasis of the ten-year arrangement.

The COVID-19 pandemic, according to JD, has caused a greater emphasis on health and wellness, which has contributed to the Middle East’s athletic leisure market’s rapid expansion.

“Through my own career, I have seen firsthand the massive untapped potential for retailers in the Middle East,” JD CEO Régis Schultz said.

In February, as Schultz laid out his intentions for the shop to become an athletic leisurewear “powerhouse,” JD said that it will spend up to 3 billion pounds ($3.8 billion) to open as many as 1,750 locations over five years.

JD and France’s Groupe Courir, which operates out of 313 outlets, reached an agreement in May.

JD reported last week that its North American business had experienced some weakening in June, but that this will be countered by rise in demand in the UK, Europe, and Asia Pacific.

JD stock has increased 16% so far this year.

(Adapted from Reuters.com)