By: Omar Alhaza'a - Founder & CEO, Franchise Arabia
Saudi Arabia's economy is experiencing significant growth, primarily driven by its ambitious "Vision 2030" plan aimed at diversifying beyond oil, making it an attractive market for international brands due to its large young population, increasing investment in non-oil sectors like technology, infrastructure, and tourism.
Additionally, the Saudi government actively encouraging foreign business participation with opportunities for 100% foreign ownership in certain industries.
Undoubtedly, Saudi Arabia is a regional powerhouse set to dominate the franchising landscape in MENA, here’s why:
High Consumer Demand & Spending Power - The kingdom has a young and affluent population, with over 70% under 35 years old. Rising disposable incomes and increasing interest in international brands make Saudi Arabia an ideal market for franchises in F&B, retail, health & wellness, education, and entertainment.
Thriving Economy & Business Hub - Saudi is becoming a global business hub with a diversified economy, attracting entrepreneurs and multinational brands, offering investor-friendly policies, and 100% foreign ownership in many sectors make it a top destination for global brands.
Cultural Openness & Innovation - Social reforms like (women’s workforce participation rising from 19% to 37% since 2016) are expanding the consumer base and talent pool. Partnerships with global players such as (Lucid Motors, ROSHN, PIF-backed ventures) showcase global collaboration opportunities.
World-Class Infrastructure & Retail Expansion - Saudi boasts state-of-the-art malls, shopping centers, and digital commerce platforms, offering franchise brands prime locations to establish a strong presence.
Massive Consumer Base – The country’s 36 million residents, concentrated in urban hubs like Riyadh and Jeddah, exhibit a strong appetite for international brands, luxury goods, and digital services, supported by a 98% internet penetration rate and a booming e-commerce sector (projected to reach $24 billion by 2026)
Booming Tourism Industry - Saudi Arabia welcomed a record 30 million international tourists in 2024, fueling demand for hospitality, F&B, entertainment, and retail franchises. The kingdom's goal is to attract 70 million visitors by 2030.
Youthful, Affluent Consumer Base - Young consumers driving demand for tech, fashion, F&B, and entertainment. A growing middle class (projected to reach 1.7 million households by 2030) prioritizes premium and international brands.
Untapped Market Opportunities – Saudi Arabia’s untapped market opportunities stem from its rapid economic diversification under Vision 2030, which has created demand in sectors previously underdeveloped or restricted, such as entertainment, tourism, health-tech, and premium retail.
Emerging Non-Oil Sectors - The kingdom’s emerging non-oil sectors—including tourism, entertainment, tech, renewable energy, and healthcare—are creating unprecedented opportunities for the franchising industry, driven by Vision 2030’s push to diversify the economy and meet rising consumer demand.
Future Goals – With a 4.6% growth in total GDP and a 4.8% growth in non-oil activities forecast for 2025, the kingdom is on course to be one of the fastest-growing major economies, proving the power of diversification.
Saudi Arabia’s economy is one of the fastest growing in the G20 driven by visionary reforms, demographic advantages, and unmatched infrastructure spending. For international brands, the Kingdom offers a rare combination of scale, incentives, and future-proof sectors—making it a strategic gateway to the $2 trillion MENA market. Early entrants will gain first-mover advantages in a transformative economy and get a bigger piece of the pie!
