The Gulf Cooperation Council (GCC) market—comprising Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman—has emerged as one of the most dynamic and rapidly growing regions for businesses and franchises. With its strong economic foundation, rising consumer spending, and government-driven initiatives, the GCC presents a unique landscape for expansion.
Economic Growth & Market Potential
The GCC’s combined GDP surpasses $2 trillion, with Saudi Arabia and the UAE leading in economic output. Steady economic growth, driven by both oil and non-oil industries, creates a strong foundation for business expansion. This economic stability makes the region an attractive market for franchising opportunities, offering global brands a promising entry point.
Rising Consumer Spending & Brand Appeal
The GCC is home to one of the world’s highest consumer spending rates, fueled by a young, brand-conscious population. With high disposable income and a growing demand for international brands, the region presents a lucrative market for franchises. Consumers in the GCC are keen on premium services and global retail experiences, making it an ideal environment for established and emerging franchises.
Digital Adoption & E-commerce Growth
With internet penetration exceeding 98%, the GCC is undergoing a rapid digital transformation. The region’s booming e-commerce sector is projected to surpass $50 billion by 2025, reshaping consumer behavior and creating significant opportunities for tech-savvy brands and online businesses. The rise of digital payment solutions, mobile commerce, and omnichannel retailing further supports this shift, positioning the GCC as a thriving hub for digital commerce.
The Rise of Franchising in the GCC
The franchise industry in the GCC is valued at over $30 billion, with food & beverage, retail, and fitness sectors leading the market. This growth underscores the appeal of franchising as a low-risk, high-reward business model for global brands looking to expand in the region. At the same time, it provides local entrepreneurs with access to established business concepts, reducing the risks associated with starting from scratch.
In the example of Saudi Arabia, over the past three years, franchise registrations have soared by an incredible 866%, reaching 1,788 by the third quarter of 2024—up from just 185 in late 2021. This growth has been fueled by the Franchise Law introduced in 2019, which established a robust regulatory framework promoting transparency and fostering strong relationships between franchisors and franchisees.
Leading sectors include accommodation and food services with 1,232 registrations, followed by retail with 689 and transport with 257. Riyadh tops the list of registrations with 647, followed by Makkah (363) and the Eastern Province (225).
According to Monsha’at quarterly Q4 2024 report (SME Monitor), there has been a new increase of 67% in commercial registrations, bringing the total number to 1.6 million during the last quarter of 2024.
Furthermore, the report has stated that more than 51,000 individuals have benefited from the Monshaat Academy, 41,076 SMEs accessed the authority’s support centers, and nearly 6,100 beneficiaries used the Mazaya platform. Furthermore, 2,100 small and medium enterprises qualified for the Jadeer service, 4,258 benefited from innovation centers, and 205 trademarks were listed on the authority’s Franchise Center platform.
Government Initiatives & Investment-Friendly Policies
GCC governments are actively fostering a business-friendly environment through foreign investment incentives, tax benefits, and economic diversification plans such as Saudi Vision 2030. These pro-business regulations and reforms are making it easier for international brands to establish a presence in the region. With streamlined licensing processes, franchising laws, and incentives for foreign businesses, the GCC is reinforcing its status as a prime destination for global expansion.
With a strong economy, rising consumer demand, rapid digital adoption, and government-backed initiatives, the GCC stands as a thriving market for business expansion and franchising. Whether you are an international brand looking to establish a presence or a local entrepreneur seeking to invest in a proven business model, the region offers unparalleled opportunities for growth and success.
Sources:
https://www.monshaat.gov.sa/sites/default/files/2025-03/Quarterly_Report_Q4_2024_EN.pdf
