Middle East franchise market to grow by 25%
The franchise industry in the Middle East is seeing prolific growth as international and local brands look for greater market penetration.
Seen as an ideal business model for small to medium enterprises (SMEs), the Middle East’s franchise industry is estimated to be worth US$30 billion, with an average annual growth rate of 25%.
Fuelling this growth is the mammoth retail explosion currently being witnessed across the region, as more and more shopping malls and entertainment centres open up. High-class malls such as Dubai’s Mall of the Emirates have provided the perfect platform for a number of international and regional brands.
“The Middle East franchise market will continue on its current growth pattern and, together with the development of the retail industry, we predict a very bright future for the sector, which is growing at 20-25% per annum,” says Sary Hamway, CEO of international franchise consultants Franchise Excellence.
Hamway says that the franchise model provides a great opportunity for SMEs across the region.
“The franchise market is maturing in the Middle East and will now diversify into more services-based franchise systems, where traditionally there has been more focus on the retail and food sectors,” Hamway predicts.
According to Abdul Rehman Falaknaz, President of International Expo Consults (IEC), organisers of the Franchising Middle East exhibition, the franchise model offers unique opportunities to entrepreneurs looking to establish a business in the Middle East.
“The Middle East market has seen steady growth in the franchise sector but now, with the number of new retail and entertainment developments opening up, the market is about to see tremendous growth,” Falaknaz says.
Hosted by the Mohammed Bin Rashid Establishment for Young Business Leaders, the Franchising Middle East exhibition takes place May 18-20 at Dubai World Trade Centre.
The show will welcome some of the biggest brands and business conglomerates from around the world, and is estimated to attract over 5,000 visitors.
A diversified range of products will be on display, including ecowash mobile middle east, promoting its waterless car washing franchise. A 100% Australian owned brand, ecowash has representation in Australia, the Middle East, Europe and the US.
“The Middle East is our fastest growing market,” says Fawzi Z. Aqel, General Manager, ecowash mobile middle east. “Since the franchise business is still new to the Middle East we believe there will be a big boom in this market in the near future,” he says.
Italian retail advisors Reno will debut at Franchising Middle East this year in order to introduce Italian brands looking for master franchisees. In Italy, Reno is in charge of the development of around 100 brands, from children’s wear and home textiles to bags and accessories.
Lebanese company Intercat Trading is hoping to franchise its Mashawi Lebanese Restaurant brand to clients in the Middle East.
“We are planning to expand Mashawi Lebanese Restaurant into many countries in the Middle East and GCC. The Middle East franchise industry is growing very fast and it will become a centre of attraction to Europe, Asia, and the USA markets in the future,” says Michel Saab, Business Development Manager, Intercat Trading LLC.
Franchising Middle East is the largest international franchise exhibition in the Middle East. Supported by the IFA (International Franchise Association), the show will welcome exhibitors from 18 countries.
An industry focused seminar programme, organised by Franchise Excellence, will bring together speakers and franchise experts from around the world to present to attendees to the exhibition. The seminar programme this year sees speakers from New Zealand, USA, Saudi Arabia, UAE, UK, Egypt, Lebanon, Kuwait, Singapore and Australia.