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More than 1,200 brands ready for franchising in Saudi Arabia: Report

The Kingdom’s franchising market offers over 10,000 business opportunities
More than 1,200 brands ready for franchising in Saudi Arabia: Report
1,000+ franchising brands in Saudi Arabia, including 380 local and 600+ foreign brands.

Saudi Arabia’s franchising market offers a vast array of business opportunities, with over 10,000 options available. Also, there are more than 1,200 brands ready for franchising, providing a wide range of choices for potential investors and entrepreneurs. The country’s favorable market conditions and supportive commercial environment have made it an attractive investment destination in the Middle East.

Saudi Arabia has witnessed the entry of numerous global brands in recent years, providing franchise opportunities across various regions.

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According to a report by the Small and Medium Enterprises General Authority (Monshaat), there are over 1,000 franchising brands in the Kingdom, comprising 380 local brands and more than 600 foreign brands.

The food and beverage, retail, and services sectors are the main focus of the Saudi franchising market.

With its significant share in the franchising market in the Middle East, Saudi Arabia has become an appealing destination for global brands, particularly following the launch of Vision 2030, which has triggered substantial investment projects in the country.

The franchising industry allows large international companies to enter local markets, providing avenues for small investors and entrepreneurs to expand their businesses.

In 2020, the implementation of the executive regulations of the franchise system facilitated the entry of global companies into the Saudi market and encouraged investment opportunities for Saudi entrepreneurs.

The Saudi franchising law aims to ensure transparent relationships between franchisors and franchisees, offering necessary protection throughout the franchising process.

The Franchising Center: Supporting Saudi brands

The Franchising Center, affiliated with the Small and Medium Enterprises General Authority, plays a crucial role in supporting Saudi brands. Their services include assessing brands’ readiness for franchising, licensing brokers, providing mediation services, and appointing franchise managers.

The center strives to strengthen the franchising system and empower brands and stakeholders, with the goal of making Saudi Arabia a regional and global hub for both local and international brands.

Through an ambitious program, the Franchising Center aims to assist small and medium enterprises (SMEs) in expanding through franchising, thereby increasing the number of active brands in Saudi Arabia.

This program offers guidance from industry experts to prepare national brands, establish operational systems, and provide opportunities for new Saudi entrepreneurs and SMEs to thrive.

These franchising initiatives are expected to generate favorable returns in the short, medium, and long term, supporting the growth of fast-growing industries.

Furthermore, the franchising market is projected to create job opportunities in Saudi Arabia in the coming years, despite being a relatively new phenomenon in the Kingdom.

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