Overview
Franchising is one of the most dynamic sectors in Saudi Arabia. The demand continues to grow as Saudis recognize that franchising is an effective, efficient and responsible way to encourage small-business development, entrepreneurship and economic opportunity. They are very interested in bringing new franchises to the Kingdom and most often have the necessary capital to launch the concept.
Recent estimates pointed out that investments in this sector were about $250 million and growing at more than 20 percent every year. There are more than 300 foreign companies that have established a franchise in Saudi Arabia. Additionally, many local companies are also pursuing this trend and developing their business concept and ideas into a franchising opportunity, which have expanded domestically and regionally.
Best Prospects/Services
Franchising opportunities are expanding beyond restaurants. There is a demand for anything related to automobiles – customization, accessories, products and services. Likewise, specialty retail stores, educational products and services, and home furnishing franchises are in demand.
Opportunities
Saudis are encouraged by the various Chambers of Commerce to look to franchising as a way to create jobs, provide additional training to new job entrants, and encourage small business development. The retail industry is booming in Saudi Arabia and this phenomenal expansion is creating tremendous opportunities for new products and services, which in turn, has created intense competition among brands, retailers, vendors and other service providers.
For more information please contact:
Maher Siblini at maher.siblini@mail.doc.gov in Riyadh
Yousef Daqqaq at yousef.daqqaq@mail.doc.gov in Jeddah
Mohammed Shujauddin at mohammed.shujauddin@mail.doc.gov in Dhahran