Business | General
Franchises growing at 27% in region
Industry analysts estimate the Middle East region generates franchise-driven revenues of $30 billion and that the franchising sector is experiencing a 27 per cent annual growth rate.
- Staff Report
- Published: 00:00 May 15, 2007
Dubai: Industry analysts estimate the Middle East region generates franchise-driven revenues of $30 billion and that the franchising sector is experiencing a 27 per cent annual growth rate.
Franchised and licensed businesses have penetrated many sectors, including education, transportation and tourism, but its most significant and evident impact has been in the region's 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, say analysts.
Naomi Koningen, project manager for Retail City 2007, which takes place at the Dubai International Exhibition Centre from June 3-5, said the conference aims to create awareness of the potential for franchising throughout the Middle East. "Franchising in the region undoubtedly has a key role to play in the burgeoning retail sector," she said.
In Dubai, the Mohammad Bin Rashid Establishment for Young Business Leaders, is actively promoting the sector. With public sector jobs no longer guaranteed and GCC nationals still reluctant to join the private sector, near government organisations are eager for young entrepre-neurs to take advantage of the business proposition franchising affords.
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