Why Global Franchises Are Targeting the Middle East for Expansion in 2025
In 2025, global franchises are making bold moves into the Middle East, with countries like Saudi Arabia, the United Arab Emirates (UAE), and Qatar emerging as prime targets. What was once considered a challenging or niche region has become a focal point for international brands in sectors ranging from food and retail to fitness and education.
But what’s driving this shift—and why now?
Economic Growth Fuels Franchise Opportunity
The economic story of the Middle East has taken a strategic turn in the past few years. Countries like Saudi Arabia and the UAE are actively diversifying their economies beyond oil, investing in tourism, retail, hospitality, and technology.
Saudi Arabia, in particular, has become a centerpiece in the global franchise narrative thanks to its Vision 2030 initiative. The country is investing hundreds of billions of dollars in infrastructure, entertainment, and consumer-facing industries. As part of this push, local demand for international experiences—especially well-known food and lifestyle brands—is surging.
According to the Saudi Arabian General Investment Authority (SAGIA), franchising is one of the fastest-growing business models in the Kingdom, with an annual growth rate of over 27%.
Youthful, Affluent Populations Are Driving Demand
The Middle East has one of the world’s youngest populations. In Saudi Arabia, over 60% of the population is under the age of 35. In the UAE and Qatar, consumer trends are similarly driven by millennials and Gen Z who are highly connected, travel frequently, and crave international experiences.
These demographics have grown up with global media and now seek the same lifestyle experiences in their home countries—whether it’s dining at Shake Shack, grabbing coffee from Tim Hortons, or shopping at global retail brands like Sephora and Uniqlo.
Franchises that bring a blend of global familiarity and regional relevance have a major advantage.
Infrastructure and Investment-Ready Markets
The region’s cities—Dubai, Riyadh, Doha—are modern, well-connected, and business-friendly. These urban centers are seeing a rapid expansion of malls, mixed-use developments, and entertainment hubs, all designed to attract international tenants.
In Dubai, for instance, major retail spaces like Mall of the Emirates and Dubai Hills Mall continue to add international brands, supported by an efficient logistics network and a strong franchising framework. The UAE also offers 100% foreign ownership in many sectors, simplifying entry for global companies.
In Saudi Arabia, large-scale projects like The Line in NEOM and Qiddiya, a massive entertainment and tourism development near Riyadh, are opening new opportunities for franchise integration in hospitality, dining, and recreation.
Food and Beverage Lead the Way
No segment illustrates the franchising boom more clearly than the food and beverage (F&B) sector. U.S. and European chains like Five Guys, Krispy Kreme, Popeyes, and Starbucks have rapidly expanded their footprint across Gulf countries.
In 2023, Dunkin’ opened its 100th store in Saudi Arabia, while homegrown brands like Jollibee and The Halal Guys are also expanding aggressively. Qatari and Emirati investors are increasingly seeking master franchise rights to launch these brands in new territories, banking on the region’s love for dining out and food delivery.
According to Statista, the F&B franchise segment in the Middle East is projected to reach $35 billion by 2026.
Navigating Cultural and Regulatory Landscapes
Despite the massive potential, expansion into the Middle East does come with complexities. Franchisors need to navigate Sharia-compliant business practices, local labor laws, and sometimes lengthy licensing processes. In Saudi Arabia, franchise regulations have recently become more structured with the introduction of the Franchise Law of 2020, which requires detailed disclosure agreements and registration with the Ministry of Commerce.
However, these regulations are also designed to protect both franchisors and franchisees, creating a more transparent and trustworthy ecosystem—one that appeals to serious global investors.
It’s also critical for brands to adapt to cultural expectations. For example, gender-specific service arrangements, prayer time considerations, and sensitivity to local customs must be integrated into operations and marketing.
Success Through Strategic Partnerships
One of the most effective strategies for entering the Middle Eastern market is through master franchising or joint ventures with local partners. These partners bring not only capital but a deep understanding of regulatory compliance, real estate selection, and regional consumer behavior.
Dubai-based Alshaya Group, one of the region’s most prominent franchise operators, is behind the success of brands like Starbucks, H&M, and The Cheesecake Factory in the Gulf. Their ability to localize global brands while maintaining consistency has become a case study in franchise success.
Looking Ahead
As 2025 unfolds, the Middle East will continue to draw global franchise players looking to capture growth in stable, high-spending markets. With strong governmental support, infrastructure development, and a population hungry for new experiences, the region presents both opportunities and challenges.
Brands that come prepared—with local knowledge, cultural sensitivity, and a long-term strategy—are likely to thrive in this next frontier of global franchising.
Whether it’s a coffee chain, fitness studio, or luxury retail brand, the Middle East in 2025 is not just open for business—it’s actively inviting the world in.