Franchise industry in Saudi Arabia hits $15B: Official

Khaled Al-Ghamdi, Chairman of the National Franchise Committee at the Federation of Saudi Chambers

Khaled Al-Ghamdi, Chairman of the National Franchise Committee at the Federation of Saudi Chambers, said that the value of the franchise industry in the Kingdom is estimated at about $15 billion (about SAR 53 billion).

He added that the Kingdom is one of the largest franchise hubs in the Middle East.

There are more than 1,200 registered trademarks in the Kingdom’s franchise sector, which is witnessing remarkable expansion, as brands grow at an annual rate of 27%, Al-Ghamdi told Argaam on the sidelines of the Saudi Franchise Expo in Riyadh.

He pointed out that the committee, in cooperation with partners, is currently working on exporting the Saudi franchise to foreign markets, starting with East Asian countries such as Malaysia, Singapore, and Indonesia.

Al-Ghamdi indicated that studies have been conducted to support local companies exploring expanding through franchises outside the Kingdom.

Furthermore, there is a move to empower Saudi franchises in Europe and the US, as Saudi products are globally admired for their quality and compliance with Halal standards, especially in the food industry, which will greatly enhance the opportunities for restaurants and cafes to spread, the official said.

Al-Ghamdi also clarified that the committee is currently studying the establishment of a floating exhibition on board a cruise, sponsored by the Public Investment Fund (PIF and the Federation of Saudi Chambers, which aims to bring together those interested in the franchise sector, in addition to attracting Saudi brands looking to expand abroad.

He stressed that the committee aims to empower the business sector in the field of franchises, whether inside or outside the Kingdom. The committee seeks to empower the private sector to achieve expansion, in addition to giving Saudi brands opportunities to expand and export to global markets, Al-Ghamdi said.