UK department store group House of Fraser has signed a franchise agreement with the aim of expanding into the Middle East market.

The agreement could see House of Fraser open stores in Cairo, Riyadh, Jeddah, Dhahran, Abu Dhabi, Muscat and Doha, its management said.

The privately owner retailer has signed a franchise deal with Retail Arabia International, the retail venture of Daud Arabian and Gulf General Investment. The move is House of Fraser's first expansion outside the UK and Ireland, where it operates from 62 stores.

Retail Arabia International already has deals in place with Hamleys toy store, Oscar de le Renta and David Morris.

"This forms a key element of our growth plans for the business, combined with the expansion of our own brands and the development of our multi-channel platform, both nationally and internationally," said House of Fraser CEO John King.

It marks the first step in House of Fraser's growth strategy after the company, which began life as a Glasgow drapers store in 1849, was taken private by a consortium led by Icelandic investment group Baugur in 2006. Baugur's 33 percent stake was later taken over by national bank Landsbanki after the investment firm collapsed in 2009.