Industry analysts estimate the Middle East region generates franchise-driven revenues of US$30 billion and that the franchising sector is experiencing a 27 percent annual growth rate. Franchised and licensed businesses have penetrated many industry sectors, including education, transportation and tourism, but perhaps it’s most significant and evident impact has been in the region's booming retail sector.
Second only to real estate, retail is driving the non-oil economy and leading the charge is retail franchising, with fast food outlets now accounting for up to 40 per cent of the retail franchising sector. Fashion, lifestyle and high-tech accessory brands are also attracting an increasing number of image and fashion-conscious regional consumers, presenting further franchise opportunities.
“The aim of featuring retail franchising opportunities on the conference agenda is to create awareness of the great potential for franchising throughout the Middle East. With a double-digit annual growth rate, franchising in the region undoubtedly has a key role to play in the burgeoning retail sector,” commented Naomi Koningen, Project Manager, Retail City 2007.
In Dubai for example, the Mohammed Bin Rashid Establishment for Young Business Leaders, is actively promoting the franchise sector. With public sector jobs no longer a 'given' and GCC nationals still reluctant to become private sector employees, near government organisations (NGO) are eager for young entrepreneurs and fledgling investors to take advantage of the business proposition franchising affords. Combined with the massive growth in retail space, retail franchising as a medium for creating a ‘new’ class of business owners is the quickest means to create small and medium enterprises (SME) which will contribute positively towards the growth of the regional economy.
Abdul Baset Al Janahi, CEO of Mohammed bin Rashid Establishment was quoted earlier this year, “The regional and national economy is entering a new stage with the small and medium enterprises (SME) and the franchise sector now plays a crucial role in the economy.”
At Retail City 2007, the region’s largest international retail real estate event, set to take place at the Dubai International Exhibition Centre (DIEC) from 3 – 5 June 2007, a number of dedicated conference sessions will highlight the issues prevalent in the regional franchising industry today and the trends for the future. In addition regional franchise operators will attend the Retail City exhibition to meet new brands and retailers.
UAE franchise experts, Roger Francis, General Manager of Master Franchisers and John Hadden, Retail Property Director at M.H. Alshaya, will deliver a presentation on ‘Franchising In The Middle East: Expanding Horizons’. During their session they will examine the key to successful franchising, the reality of franchising in the Middle East and the growth opportunities and challenges it presents.
To add an international aspect, Rolf G. Kirst, Owner and Managing Director, Franchise Pool International; Member of the Board, German Franchise Association; Vice Chairman, European Franchise Association will make a comparison of how franchising is viewed internationally and in the Middle East. He will highlight the massive potential for franchising in the region and will explain how to find, evaluate and create winning franchises.
The Retail City conference features over 35 outstanding speakers and has placed a special emphasis on retail development and investment. As such, the event will provide an ideal networking platform for developers, investors, consultants, architects, designers and financial institutions.
