21/08/2017
Al Iktisad magazine published by Asharqia Chamber stressed that the Franchise
business has grown in the Saudi market, which enjoys 50% of the
franchise market in the Middle East, and that some Saudi companies are
exporting trademarks around the world.
"The
market in the Middle East is estimated to be worth $ 30 billion, the
Kingdom share of which is about 50%, and therefore more activity is
expected to be seen in the region," the economy said in its August
issue, especially in the vision 2030, which aims to support those wishing to invest in the franchise system.
She pointed that the franchise system is an important
opportunity to launch entrepreneurs wishing to work freely, as this
mechanism opens wide prospects for the promotion of small and medium
institutions, which requires the establishment of a legislative, cultural
and economic development.
The
commercial franchise, which appeared in 1871 in the United States and
spread throughout the world, is an agreement between two legally and
economically independent parties: the franchisor or franchisee, the
franchisee or franchisee, one or more intellectual or industrial property rights, or
technical knowledge of the production or distribution of a particular
good or service under the trademark produced or used by the grantor, for
a material consideration or other advantages and interests.
The
first phase of the importation process began in a modest and timid
manner in the late 1970s and early 1980s, but the real expansion began
after the 1991 liberation war in Kuwait, as the number of imports of commercial concessions increased to more than 250 companies in this field. The
second stage was the launch of Saudi companies with their franchises.
One of the fast-food groups was launched in 1994 from Makkah to grant
its franchises in the east and west to Jakarta in Indonesia and Chicago
in America, followed by 22 companies, Its franchises granted in many countries of the world are about 700 franchises.
The third stage is the activation of the franchise industry in the
Kingdom, which we are living in now. Community service funds have
started to finance projects that have been granted. The Saudi Credit and
Savings Bank will soon start offering attractive loans to small and
medium institutions.
The
magazine said that other stages expected to occur in the future is the
stage of enactment of laws and regulations for the commercial franchise
industry, to enter the phase of exporting of Saudi privilege abroad, and
this is conditional on an increase in the number of companies operating
in the field of franchise business. Expected
to witness the revolution in the period of investment in commercial privilege, which urgs for more government supervision to preserve the
rights of all parties. The magazine concluded that franchising is a good option for those looking for self employment.
