Franchise business in Mena valued at $14b

Dubai: The franchise industry in the Middle East and North Africa is valued at about $14 billion and growing 27 per cent each year, according to the organisers of a Dubai trade show.

Mohammad Bin Rashid Establishment for Young Business Leaders, which is holding the fourth edition of Franchising Middle East (FME) from March 7 to 9 in Dubai, expects strong interest among international franchisers to tap the lucrative regional market.

Abdul Rahman Falaknaz, president of International Expo Consults, whose company is responsible for organising the event said 20 per cent annual growth in FME participation "reflects the kind of interest the Middle East as a franchising destination is generating."

A large number of franchisers from within and outside the region will showcase their products and services at FME.

International Franchise Association (IFA) representatives will also attend the event.

"The retail industry in the Middle East is developing at a frenetic pace. At Dh30 billion, it is already the fourth largest contributor to the UAE's GDP. This phenomenal expansion is creating tremendous opportunities for new products and services," Falaknaz said.

He said the retail growth is accompanied by intense competition among brands, retailers, vendors and other service pro-viders.

"We as organisers of Franchising Middle East strive to provide a balanced preview of the opportunities and risks involved. Master franchisee's and franchisers get an idea about the market, the sectors that are doing well, the risk factors involved and the ways to overcome the pitfalls through experience sharing," he said.

With youth comprising half of Arab population the market is seen as lucrative by potential franchisers, the company added. Presence of a large number of expatriates in the Gulf also creates demand for products and services foreign regions.

"This diversity creates a consumer base drawn from broad social and cultural catchments. Such a scenario inherently creates a demand for a wide range of products and services from heterogeneous markets," International Expo Consults said.