Riyadh: Franchise registrations in Saudi Arabia have surged by an impressive 866% over the past three years, reaching 1,788 by the end of Q3 2024, compared to just 185 in 2021. The significant growth is attributed to the Franchise Law, enacted in October 2019, and its executive regulations introduced in May 2020. These measures have provided a robust regulatory framework that enhances transparency and clarity in the relationship between franchisors and franchisees, spurring increased activity across the Kingdom’s franchise sector.

According to Saudi Press Agency, the accommodation and food services sector, encompassing tourism, hotels, and restaurants, has emerged as the leading sector with 1,232 franchise registrations. This is followed by the wholesale and retail sector with 689 registrations and the transportation and storage sector with 257. Notably, one franchise registration may encompass multiple activities.

Regionally, Riyadh leads with 647 franchise registrations, followed by the Makkah region with
363 and the Eastern Province with 225, underscoring the concentration of franchise activity in the Kingdom’s key economic hubs.

This remarkable growth reflects Saudi Arabia’s ongoing efforts to create a conducive environment for franchise businesses, driving economic diversification and entrepreneurship in line with Vision 2030.