Franchise Registrations in Saudi Arabia, Surge by 866% in Three Years

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Riyadh: Franchise registrations in Saudi Arabia have seen a remarkable surge, increasing by 866% from 2021 to 2024. By the end of Q3 2024, the total number of franchise registrations reached 1,788, up from just 185 in 2021. This significant growth is largely attributed to the introduction of the Franchise Law in October 2019, followed by its executive regulations in May 2020. These measures have provided a solid regulatory framework that ensures transparency and clarity between franchisors and franchisees, stimulating increased activity in the sector.

The accommodation and food services sector, which includes tourism, hotels, and restaurants, leads the way with 1,232 franchise registrations. The wholesale and retail sector follows with 689 registrations, while the transportation and storage sector has 257. It is important to note that one franchise registration may cover multiple business activities. Geographically, Riyadh leads with 647 registrations, followed by Makkah with 363 and the Eastern Province with 225, highlighting the concentration of franchise businesses in the Kingdom’s key economic regions. This rapid growth in the franchise sector reflects Saudi Arabia’s continued efforts to foster a business-friendly environment, promoting economic diversification and entrepreneurship as part of its Vision 2030 initiatives.