‎Franchise firms eye Tadawul listings: Al-Ghamdi

‎Franchise firms eye Tadawul listings: Al-Ghamdi ‎Franchise firms eye Tadawul listings: Al-Ghamdi

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Khalid Al-Ghamdi, Head of the National Franchise Committee at the Federation of Saudi Chambers

Khalid Al-Ghamdi, Head of the National Franchise Committee at the Federation of Saudi Chambers, said several franchise companies are interested in listing their shares on the Saudi Exchange (Tadawul).

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Some companies have already listed, while others are preparing to launch initial public offerings (IPOs), he told CNBC Arabia.

Al-Ghamdi said Saudi Arabia’s franchise sector has reached investment maturity, with a market size of around SAR 60 billion. He added that the sector has been growing at an annual rate of approximately 10% and that growth has accelerated in recent years.

The regulations governing commercial franchising have protected the rights of both franchisors and franchisees, he said. Moscow was the first destination under the Franchise Gateway Program, with efforts underway to introduce 10 Saudi brands to international markets.

Al-Ghamdi also said the Commercial Franchise Law, issued in 2019, has helped regulate the market. He added that the sector is supported by financing from the Social Development Bank, the Ministry of Commerce, and the Saudi Export Development Authority.

“Saudi brands have become strong brands with growing international acceptance and are recognized for their high quality, supported by regulatory oversight of the restaurant and café sector by the Saudi Food and Drug Authority, the Ministry of Commerce, and the Ministry of Municipalities,” said Al-Ghamdi.

He also stated that the Syrian market is showing growing demand for Saudi restaurants and cafés, noting that the committee has established an international company to export Saudi brands.

Al-Ghamdi indicated that there are 1,600 registered trademarks in Saudi Arabia that own franchise and franchising rights, while the number of Saudi companies currently seeking to grant franchises remains fewer than 20 brands.

 

Khalid Al-Ghamdi, Head of the National Franchise Committee at the Federation of Saudi Chambers

Khalid Al-Ghamdi, Head of the National Franchise Committee at the Federation of Saudi Chambers, said several franchise companies are interested in listing their shares on the Saudi Exchange (Tadawul).

Some companies have already listed, while others are preparing to launch initial public offerings (IPOs), he told CNBC Arabia.

Al-Ghamdi said Saudi Arabia’s franchise sector has reached investment maturity, with a market size of around SAR 60 billion. He added that the sector has been growing at an annual rate of approximately 10% and that growth has accelerated in recent years.

The regulations governing commercial franchising have protected the rights of both franchisors and franchisees, he said. Moscow was the first destination under the Franchise Gateway Program, with efforts underway to introduce 10 Saudi brands to international markets.

Al-Ghamdi also said the Commercial Franchise Law, issued in 2019, has helped regulate the market. He added that the sector is supported by financing from the Social Development Bank, the Ministry of Commerce, and the Saudi Export Development Authority.

“Saudi brands have become strong brands with growing international acceptance and are recognized for their high quality, supported by regulatory oversight of the restaurant and café sector by the Saudi Food and Drug Authority, the Ministry of Commerce, and the Ministry of Municipalities,” said Al-Ghamdi.

He also stated that the Syrian market is showing growing demand for Saudi restaurants and cafés, noting that the committee has established an international company to export Saudi brands.

Al-Ghamdi indicated that there are 1,600 registered trademarks in Saudi Arabia that own franchise and franchising rights, while the number of Saudi companies currently seeking to grant franchises remains fewer than 20 brands.

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