Franchise registrations in Saudi Arabia surge 53%, reflecting investor confidence: expert

Abdul Latif Saber, associate professor in the Department of Finance and Economics at the University of Jeddah, said that the 53% increase in franchise registrations reflects growing investor confidence in the Saudi market.

Speaking to Al Ekhbariya TV, Saber added that this growth is linked to the development of the business and investment environment in the Kingdom and the rising confidence of investors in the local market. He emphasized that the focus should not be solely on the growth figure itself, but also on how it empowers small and medium-sized enterprises in line with the goals of Vision 2030, as all current initiatives in the Kingdom serve this vision.

Saber noted that the franchise system provides an investment model that combines the operational expertise of brands—especially international ones—with attractive capital. This combination, he said, creates fertile ground for achieving Vision 2030. The new system has brought about a significant shift in regulating the relationship between franchisors and brand owners.

He further stated that the importance of the system goes beyond regulating activity; it also boosts confidence by being a key factor in attracting capital, pointing to the growing culture of brand ownership.

The Ministry of Commerce recently announced that the total number of registered franchise licenses in the Kingdom rose by 53% during the first nine months of 2026, reaching 6,484 registrations compared to 4,227 at the end of the same period in 2025. This increase indicates the expanding presence of franchise activity across business sectors in the Saudi market.

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