Raising franchise standards in Saudi Arabia

Global franchise brands entered Saudi Arabia in the mid-1970s, with international restaurants and hotels helping franchising expand during the 1990s. Over time, the Kingdom’s franchise community has grown beyond imported concepts to include an increasingly strong Saudi presence. A major milestone came with the introduction of the Commercial Franchise Law in October 2019, which took effect in April 2020, establishing a dedicated framework for franchise relationships, transparency and disclosure.

By the end of the second quarter of 2026, Saudi Arabia had 1,514 operating franchise brands, including 744 local brands representing 49.1% of the total. Saudi companies have also expanded through franchising into other GCC countries.