"The robust growth forecast underlines the increasing economic contributions of the franchising industry in Saudi Arabia," said Alireza after formally inaugurating the exhibition.

Alireza was accompanied by Abdul Rahman Al-Jeraisy, chairman of the Riyadh Chamber of Commerce and Industry (RCCI). The opening ceremony was attended by a large number of Saudi officials, diplomats and businessmen.

Referring to the successful staging of the Saudi International Franchising Expo & Conference (IFEC), Alireza said the exhibition would provide opportunities for international franchisers, entrepreneurs, agents and business owners to discuss and network with investors and potential franchisees in Saudi Arabia. He said that the Saudi government had offered "value-added business incentives and world-class infrastructure, making the Kingdom an ideal place to do business."

Speaking on his part, Al-Jeraisy said that the three-day IFEC aims to capitalize on the business potential of franchising in Saudi Arabia. He said that the franchising market in Saudi Arabia with more than 27 million people was fast becoming one of the most popular nonoil businesses in the region. The growing number of franchising businesses has been influenced by the government's proactive efforts to encourage foreign direct investments, he added.

All these steps will help to promote the growth of SMEs in the country, he added. A brochure distributed by Riyadh International Exhibition Center on this occasion said that the 60 percent of the Saudi population, which is under the age of 25, is a prime target market for various international brands, which creates a wide range of franchising opportunities in the country.

Saudi Arabia has emerged as an attractive growth destination for franchising businesses because of proactive government support, which includes substantial subsidies on resources such as water, oil, communication and electricity, it noted. The introduction of 100-percent foreign ownership has likewise greatly enhanced the reputation of Saudi Arabia as a lucrative investment destination, particularly for franchising businesses.