Estimates suggest Saudi Arabia accounts for half the regional franchise market

Saudi Arabia accounts for around half of the Middle East and Africa’s franchise market, estimated to be worth US$30 billion, according to estimates cited in an Arab News report published in Japanese on 10 September 2026. The report links the growing presence of Saudi Arabia’s franchise sector to its regulatory framework and support for small and medium-sized enterprises, while presenting growth forecasts that should be read as estimates rather than guaranteed outcomes.

Saudi Arabia’s weight in a broad regional market

The report quoted Yasin Ghulam, associate professor of economics at Al Yamamah University in Riyadh, as saying that the Kingdom now represents roughly half of the regional franchise market in question. Ghulam placed this position in the context of Saudi Arabia’s drive to diversify its economy under Vision 2030, alongside greater openness to international businesses and stronger relationships between franchisors and franchisees.

This assessment gives Saudi Arabia’s franchise sector a significance that goes beyond individual brand counts or branch openings. It considers the Kingdom’s position within a wider market and its ability to attract local and international business models. However, the figure remains an estimate attributed to an expert in the report, rather than a new set of official statistics presented in the available material.

The description of the share as ‘around half’ also matters when reporting the news. The source does not provide a separate, precise valuation of the Saudi market or explain the methodology used to calculate the regional market’s size. This approximate share should therefore not be converted into a definitive Saudi market figure, or used on its own to assess the viability of a particular franchise opportunity.

Registration growth figures date back to 2024

Among the key indicators cited by Ghulam was the rise in franchise registrations in the Kingdom to 1,788 by the end of the third quarter of 2024, compared with 185 three years earlier. This comparison illustrates the expansion in registrations over the period covered, but it is not an up-to-date count as of September 2026, despite that being the report’s publication date.

This time gap is essential to understanding the story. The recent report relies partly on older data, so those figures primarily indicate the trajectory of expansion during those years, rather than the precise current size of the franchise sector. Registrations should not automatically be equated with the number of brands, outlets or opportunities available to investors, either.

On geographical reach, Ghulam noted that development was not confined to a particular area but extended to most major cities. The report listed Riyadh as leading with 647 registrations, followed by Makkah with 363 and the Eastern Province with 225. These figures add a geographical dimension to the growth story, rather than reducing it to a single national total.

This distribution alone does not establish the level of competition or profitability in each location. Registration numbers describe one aspect of commercial presence, whereas assessing an opportunity requires information about the business activity, brand, location and costs—details the regional report does not provide.

Regulation and support underpin sector expansion

Experts who spoke to Arab News attributed part of this development to the introduction of the Franchise Law in 2019 and the expansion of regulatory frameworks the following year. According to the report, these measures helped open the market to international businesses and strengthen relationships between franchisors and franchisees, alongside wider economic diversification efforts.

Abdullah Al-Maghlouth, a member of the Saudi Economic Association, said government efforts to support small and medium-sized enterprises, through simpler procedures and a business-friendly environment, had contributed to the sector’s growth. He added that the 2019 law provided a clear legal framework that helped attract domestic and foreign investment and strengthen Saudi Arabia’s business environment.

The story is not an announcement of a new regulatory amendment in 2026, but an assessment of how an existing framework has influenced the sector’s development. This distinction separates news of a rule change, which would require details of new provisions and their implementation dates, from an economic assessment of how earlier rules have supported expansion.

Strong forecasts still require scrutiny

Ghulam said researchers and observers expected franchise businesses to grow by more than 20 per cent annually over the next five years and beyond. This reflects optimism about the sector’s future direction, but remains a forecast cited in the report—not an achieved growth rate or a promise of equivalent returns for every franchisee.

The story therefore brings together three distinct elements: an estimate of the regional market’s size and Saudi Arabia’s share of it, registration data dating back to 2024, and forecasts for the years ahead. Keeping these separate preserves the actual meaning of the figures and helps investors avoid interpreting broad indicators as a guarantee that a particular venture will succeed.

Practical takeaway: The report highlights Saudi Arabia’s prominent position in regional franchising. Anyone considering a new opportunity should request up-to-date data specific to the brand and location, and check the timeframe and definition of each indicator, rather than base a decision solely on market size or growth forecasts.