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Why are so many American franchisors suddenly interested in developing their brands in Saudi Arabia?
“Because it’s hot!” said Kurt Ullman, vice president of international development for Tasti-D-Lite. And he wasn’t just talking about the weather. Ullman had recently returned from a development trip to Riyadh and Jeddah. He also stopped off in Kuwait. “Franchising grabbed the interest of the Middle East many years ago,” he continued, “and there’s been no slowing down. Many U.S. brands see the opportunities that now exist in that expansive market.”
More Good Reasons
There are several other good reasons for this interest, including:
- The U.S. Commercial Service explains that the windfall of higher oil revenues for Saudi Arabia has created substantial commercial opportunities for U.S. companies because Saudi Arabia recognizes the economic need to balance rising oil export revenues with higher volumes of foreign imports. Now’s a good time to develop a new franchise brand in Saudi Arabia.
- The country has more workers than jobs. Saudi Arabia welcomes opportunities to develop entry-level employment for local residents. Franchising is desired and the franchise sector, now at $1-billion annually, is expected to grow by 12% each year.
- Rising interest in entrepreneurship. Saudi Arabia includes an energetic private sector that seeks business ownership. Saudi Credit Bank provides interest-free loans to encourage entrepreneurial business development!
- Saudi Arabia represents the largest economy in the Middle East. And Riyadh, the capital, is enjoying growth at a rate of nearly 8 percent annually, making it one of the fastest growing capitals in the world.
- The USA remains the largest foreign investors in Saudi Arabia and more than 20,000 Americans reside and work in the country.
Opportunity to Exhibit
If your company plans to explore opportunities in the Middle East, then take note of the upcoming 3rd Annual Saudi International Franchise Expo & Conference, Oct. 26-28, in Riyadh, which is also home to the U.S. Embassy. Organized by the Riyadh Chamber of Commerce and Industry, this event creates a seamless opportunity for American franchise companies to enter or expand in Saudi Arabia and other countries of the Middle East. Learn more about the expo and conference at www.recexpo.com, and click on Saudi International Franchising 2010. You can also contact Diya S. Abdo, Market Development Manager, Riyadh Exhibitions Company, at +966-1-2295604 ext. 371.
15% Discount Available
When Diya Abdo asked if I would speak at the conference and promote the expo to American franchisors, I said yes with the provision that the expo organizers extend a discount to companies that mention my name when they register. They agreed, so you’ll get a 15% discount off the registration fee if you just mention my name, or FranchiseMastermind.com.
By the way, I’ll be living in the Middle East beginning this September. I’ll be a professor of business and communications at Gulf University for Science & Technology in Kuwait. In Riyadh in October, I’ll teach multiple seminars for prospective franchisees and existing franchisors related to buying a franchise as well as selling master licenses.
If you plan to exhibit, don’t delay! You’ll need a visa for entry to Saudi Arabia and Diya Abdo will help you with the details, but since the process may require a month to two, it’s important to begin making plans now. Visas will be extended only to men; women are not invited to participate as exhibitors this year. Take advantage of the 15% discount that I arranged for readers of FranchiseMastermind.com.
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