01 Apr 2024
Saudi Arabia is emerging as a thriving investment destination in the middle East, thanks to its favorable market conditions and supportive commercial environment. The kingdom has recently welcomed hundreds of global brands, presenting lucrative franchise opportunities across various regions.
A recent report by the small and medium enterprises general authority (Monshaat) revealed that Saudi Arabia’s franchising market boasts more than 1,000 brands, with 380 being local and over 600 foreign brands. With a primary focus on sectors like food and beverage, retail, and services, Saudi Arabia holds a significant share of the franchising market in the Middle East, attracting global brands, particularly after the launch of Vision 2030 - a catalyst for major investment projects within the country.
The franchising industry serves as a gateway for international corporations to penetrate local markets, offering small investors and entrepreneurs valuable opportunities to expand their businesses. In 2020, the executive regulations of the franchise system were implemented to facilitate the entry of global companies into the Saudi market while promoting investment prospects for local entrepreneurs.
The Saudi franchising law ensures transparent relationships between franchisors and franchisees, providing essential protection throughout the entire process. Monshaat's report emphasized the role of the Franchising Center, an authority-linked institution that assists various Saudi brands. Their scope includes assessing brand readiness for franchising, licensing brokers, offering mediation services, and appointing franchise managers.