The first ever Waitrose stores will open overseas next year under an unprecedented licensing agreement between Britain’s sixth-biggest supermarket chain and Spinneys, a Dubai-based rival.

Under the deal, Spinneys will open 20 stores under the Waitrose brand in the United Arab Emirates by 2010. The first is expected to be unveiled in a suburb of Dubai in April.

Waitrose, part of the John Lewis Partnership, said the “significant milestone” was the first major step to building an international business worth potentially £800 million-a-year to the group.

Mark Price, managing director, said he was particularly keen to do far more in China and India, two of 20 countries where Waitrose currently exports part of its product range through tie-ups with foreign retailers.

He told Times Online that the supermarket was considering a similar licensing deal with Park n Shop in China.

He said: "Waitrose is a really well regarded business globally and we have not to date exploited that.

"I think that over the next couple of years' people will be surprised by our ambition."

The supermarket chain has also been in contact with potential franchise partners in South Africa and is believed to be close to signing a deal to export Waitrose-branded products to the US.

Waitrose wants to double the size of the chain over the next decade in a move that would see turnover rise to £8 billion by 2018.

Richard Hodgson, commercial director, said the international operation could account for 10 per cent of total turnover by this time - £800 million.

He added: “This agreement [with Spinneys] is set to accelerate export trade for Waitrose and marks a significant milestone in our international ambitions.

“Spinneys, a retail operator that shares many of the Waitrose trading principles and with whom we have enjoyed a successful three-year trading relationship, was the obvious choice."

The licensing route has already been used by a number of UK retailers to expand their operations overseas, including Mothercare, Monsoon and Debenhams.

Marks & Spencer has struck franchising deals in the past. However the retailer has either chosen to go it alone or set up joint ventures in China and India.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive