Saudi Arabia's efforts to diversify its economy are paying off as the country's franchising industry, estimated to be worth SR3.75 billion, is expected to grow at an annual rate of 12 percent. The robust growth forecast underlines the increasing economic contributions of the franchising industry in Saudi Arabia and its strong potential to become the most popular non-oil business sector in the region, said Diya Abdo, Project Manager, Saudi International Franchise Exhibition and Conference (IFEC 2010), Riyadh Exhibition Company (REC). The IFEC 2010, the third international exhibition and conference for the franchise industry in Saudi Arabia, sought to complement the surge in franchising activity by providing a platform for international franchisers, entrepreneurs, agents, business owners and investors from the Middle East and other regions to discuss the most promising franchising opportunities and to address important issues. IFEC 2010 will be held at the Riyadh International Convention and Exhibition Center from Oct. 26 to 28. “The franchising market in Saudi Arabia is fast becoming one of the most popular non-oil businesses in the region. The growing number of franchising businesses has been influenced by the government's proactive efforts to encourage foreign direct investments and promote the growth of SMEs in the country,” Abdo said. The Saudi government has offered value-added business incentives and has developed world-class infrastructure besides offering basic resources such as communication and electricity facilities that helped reduce the operational costs for franchisees, he said. Moreover, up to 60 percent of the Saudi population is under the age of 25, a prime target market for various international brands, which creates a wide range of franchising opportunities in the country, he added. IFEC 2010 will also host a number of seminars with participation from foreign franchisers who will share success stories and also explore ways to expand their franchising activities in the Kingdom. The seminars will cover topics including legal and financial issues concerning Saudi Arabia. The participants will also focus on cross-cultural issues in their deliberations, Abdo said.
