27th July 2010: Riyadh, SAUDI ARABIA The Kingdom of Saudi Arabia’s (KSA) franchising market has been estimated to be worth SAR 3.75 billion (US$ 1 billion) and is expected to grow by up to 12% annually according to recent industry figures. These figures are the sales by businesses of regional and international master franchises in Saudi Arabia (More statistics on Franchising in Middle East)

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.

The Saudi International Franchise Exhibition and Conference 2010 (IFEC 2010), the third international exhibition and conference for the franchise industry in Saudi Arabia, seeks to complement the surge in franchising activity by providing a platform for international franchisors, entrepreneurs, agents, business owners and investors from all over the Middle East to discuss the most promising franchising opportunities and address emerging industry challenges. IFEC 2010 will be held from October 26 to 28, 2010 at the Riyadh International Convention & Exhibition Centre.

Diya Abdo, Project Manager of IECF in Riyadh Exhibitions Company, said: “Franchising in the Kingdom of 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.

The government has offered value-added business incentives and has developed world-class infrastructure for basic resources such as water, oil, communication and electricity, which has helped greatly reduce the operational costs for the franchisees. Moreover, up to 60 per cent of the Saudi population are under the age of 25, making them a prime target market for various international franchise businesses and subsequently creating a wide range of franchising opportunities in the country.” Several international franchisors are expected from Middle East, Singapore, India and Thailand.

This is the 3rd edition of the Franchising Expo in Riyadh, Saudi Arabia, considering that there are a lot of entrepreneurs looking for new business opportunities. This is one of the three mojor franchise exhibitions organised in the Middle East and North Africa Region.

IFEC 2010 will include seminars targeting foreign franchisors that have enjoyed success and are looking to expand their franchising activities in Saudi Arabia. The seminars will cover legal and financial issues when developing businesses in Saudi Arabia, while cross-cultural issues will also be discussed.