Saudi Arabia's Franchising Market Offers Over 10,000 Business Opportunities with 1,200 Brands Ready for Franchising

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.

The overarching objective of the Franchising Center is to boost the franchising system, empower brands and stakeholders, and establish Saudi Arabia as a regional and global hub for both local and international brands. Through an ambitious program, the Franchising Center will facilitate the expansion of small and medium-sized enterprises (SMEs) through franchising, ultimately increasing the number of active brands in Saudi Arabia through guidance from industry experts.

This comprehensive approach aims to prepare national brands, establish efficient operational systems, and provide new Saudi entrepreneurs and SMEs with growth opportunities. The franchising programs are anticipated to yield favorable returns in the short, medium, and long term, further supporting the growth of fast-growing industries across the Kingdom.

With promising prospects, the franchising market is predicted to generate job opportunities in Saudi Arabia in the years to come. Despite being relatively new in the Kingdom, the franchising sector has experienced rapid growth and development, contributing to the overall economic landscape.