Saudi franchise registrations surge 866% in 3 years: Commerce ministry

Saudi Arabia has witnessed an 866% surge in franchise registrations over the past three years, reaching 1,788 by the end of the third quarter of 2024, compared to 185 in Q4 2021.

In a statement released today, the ministry of commerce said that the Franchise Law introduced in October 2019, along with its executive regulations issued in May 2020, has contributed to the growth of franchise registrations.

The law has encouraged franchise activities in the Kingdom by establishing a regulatory framework for the relationship between franchisors and franchisees, based on principles that promote transparency and clarity.

The accommodation and food services sector, which includes tourism-related businesses, hotels, and restaurants, led registrations with 1,232 entries, followed by the wholesale and retail division with 689 and the transport and storage industry with 257 registrations, the Ministry of Commerce said in a statement. The ministry highlighted that a single enrollment could encompass multiple activities.

Riyadh topped the list of issued franchise registrations with 647 enrolments, followed by Makkah with 363 and Eastern Province with 225.