JEDDAH, 27 July 2004 — There are around 120 products or services in Saudi Arabia that could lend themselves to worldwide franchising. According to experts, restaurants, libraries, transportation and maintenance could benefit from the opportunities offered for worldwide expansion when Saudi Arabia joins the World Trade Organization.
Saudi Arabian market has produced many successful brands that have proved their ability to compete in the local, regional and international market. One is the Al-Tazej restaurant chain, present in more than 12 countries around the world including the United States, Malaysia and several European, Asian and African countries.
Some economic experts believe that the franchise business in Saudi Arabia is set to increase by 25 percent in the next five years. The gross investment in franchising by enterprises in the Kingdom could rise from SR3 billion to SR8 billion.
Tareq Abdul Rahman Fakeeh, general manager of Al-Tazej chain, said that franchising would become the main market in the future. “Saudi Arabia is qualified to become the main market in the Middle East next to Egypt and Lebanon,” he said.
The snack food company “Hot and Crispy” and the beauty products chain “Zohoor Al-Reef” are but two examples of Saudi franchise success. These companies managed to spread both locally and regionally.
Fakeeh commented that the spread of franchising business needs a lot of effort to achieve both its economic and social goals. He said that the chance is available to Saudi investors to expand their investment through franchising, following the example set by the Al-Tazej chain in the international market.
Fakeeh began franchising in 1990 and became the Saudi leader. Al-Tazej opened in 12 outlets around the world, including the US — the toughest and largest market.
He said the decision to begin franchising started when his father, Abdul Rahman Fakeeh, came up with the idea of opening a chicken restaurant. A US company researched how to grill chicken to prepare fast meal retaining the Mid-eastern style.
He attributed the success of the 100-percent Saudi-owned restaurant chain to many factors, not least its national character. The company owns 67 branches, including 66 branches franchised by 40 local investors. Tarek Fakeeh expects to expand worldwide in the first five years after joining the WTO.
