The Middle East and North Africa (MENA) region is diverse and presents numerous opportunities for franchising, depending on the brand and industry. The best place to start a franchise in MENA will depend on various factors, such as: the brand's target market, the industry, and the regulatory environment.
Some of the most popular destinations for franchising in MENA include the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, and Kuwait. These countries have well-developed economies, a high level of consumer spending, and a business-friendly regulatory environment that makes them attractive to franchisors.
The United Arab Emirates (UAE)
The UAE is often generally considered as first the gateway to the MENA region and is one of the most popular destinations for franchising. The UAE has a diverse economy and a high level of consumer spending, making it an attractive market for many brands. Dubai, with a thriving retail sector and a large expat population, is an ideal spot for setting up a new franchise business.
Saudi Arabia
The country has a large and rapidly expanding consumer market, with a high level of disposable income, and has been making significant efforts to attract foreign investment.
Qatar
Qatar is also an attractive destination for franchising in MENA, with a strong economy and a high level of consumer spending. The country is preparing to host the 2022 FIFA World Cup, which is expected to drive significant growth in the retail and hospitality sectors.
Are there restrictions when setting up a business?
There are potential restrictions to setting up a business in the Middle East and North Africa (MENA) region, and these can vary on a country-by-country basis. Each country in MENA has its own legal and regulatory framework, which governs the establishment and operation of businesses in that country.
One of the key restrictions entrepreneurs need to be aware of when setting up a business in MENA is the requirement for foreign investors to have a local partner or sponsor. In certain countries, international investors are required to form a joint venture with a local partner or sponsor, who will then own at least 51% of the business. This is intended to promote local participation in the economy and ensure that foreign investment benefits the local population.
Foreign investors may also need to obtain specific licenses and permits to operate businesses across MENA. These will vary depending on the industry and the type of business, and investors should be aware that the process for obtaining them can be time-consuming and complex. You will need to spend time researching specific laws in the chosen country and get legal advice from local legal representatives in the regions.
For any individual looking to set up a business in the MENA regions, it is of vital importance that extensive research is conducted on the legal and regulatory framework in the country or countries in which they are interested. Working with lawyers, accountants, and business consultants can also help navigate the complexities of setting up a business in MENA.
Overall, finding a suitable location start a franchise in MENA will depend on specific goals and the industry-type. It is essential to spend time and research to help navigate the regulatory and cultural differences in the region.